Basis for National Health Reform payments – Western Australia 2015-16

The basis used to determine NHR payments to LHNs in Western Australia is as follows:

The 2015-16 annual funding allocations have been developed using the Western Australian Activity-Based Funding program methodology. Activity profiles have been developed consistent with the WA Health clinical services framework. The funding allocations include activity based services, block funded services and specified programs.

The national ABF classifications and associated price weights including all of the adjustments (Specialised Paediatric, Rural/remote, Indigenous, ICU and private patient) have been used to define Activity-Based Funding profiles.

The State Price, calculated using a methodology more closely aligned to the National ABF framework, provide a more transparent basis for comparing the cost of delivering hospital services in Western Australia against the national cost benchmark (Projected Average Cost (PAC)). The gap between the total price of all Western Australian hospital activity funded at the State Price and the total cost of all Western Australian hospital activity funded at the PAC, is called the Community Service Subsidy (CSS) payment.

Block Funding is based on budget to budget build from the previous year using Western Australia State Government funding parameters consistent with the Western Australia State budget.