2016-17 Administrator National Health Funding Pool Annual Report

Impacting the lives of everyday Australians by supporting a sustainable public hospital system.

Payments to Australian public hospitals $43.4 billion

The role of the Administrator, with support from the National Health Funding Body, is to administer the National Health Funding Pool, to oversee payments into and out of the state pool account for each state and territory, and to report on various funding and service delivery matters.

The Administrator is a statutory office holder, appointed to the position under legislation of the Commonwealth, and each state and territory.

The Administrator is independent of Commonwealth and state and territory governments, and is not subject to the control or direction of any Commonwealth Minister.

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This Annual Report should be read in conjunction with the National Health Funding Body 2016–17 Annual Report.

The $43.4 billion in payments to Australian public hospitals represents the amount paid to local hospital networks from the State Pool Accounts and State Managed Funds, for weighted public hospital services. Further detail can be found on pages IV–V (infographic) and in Appendix 1 (page 268).

FURTHER INFORMATION

If you require further information or have any queries in relation to this Annual Report, please contact:

The Administrator, National Health Funding Pool
GPO Box 1252
Canberra ACT 2601
Phone 1300 930 522
Media 02 6289 7425
Email nhfa.administrator@nhfa.gov.au

An accessible copy of this Annual Report is available online at:
www.publichospitalfunding.gov.au/publications/annual-reports

2016–17 FUNDING AND PAYMENTS

2016-17 funding and payments

Differences between funding into, and payments out of, the National Health Funding Pool and State Managed Funds can occur due to payments to 'Other organisations or funds' (for example, State Health Departments for Public Health or cross–border), or opening and closing cash balances in the State Pool Accounts.

NATIONAL HEALTH REFORM REPORTING

The scope of reporting in the Administrator and National Health Funding Body (NHFB) annual reports is funding and payments processed through the National Health Funding Pool and State Managed Funds. This comprises activity based, block and public health funding, which represents the majority of public hospital activity in Australia.

NATIONAL HEALTH REFORM FUNDING RECEIPTS 2016–2017

NATIONAL HEALTH REFORM FUNDING RECEIPTS 2016–2017

Represents all activity based, block, public health and cross-border funding into the National Health Funding Pool and State Managed Funds.

Further details on the basis of these amounts can be found in the relevant state or territory section of the Administrator of the National Health Funding Pool 2016–17 Annual Report, or at publichospitalfunding.gov.au.

The Administrator is assisted by the NHFB. For further details of the NHFB's operations, please see the NHFB 2016–17 Annual Report or nhfb.gov.au.

Totals may not equal the sum of components due to rounding.

FUNDING RECEIPTS BY SOURCE

FUNDING RECEIPTS BY SOURCE

FUNDING RECEIPTS BY TYPE

FUNDING RECEIPTS BY TYPE

PAYMENTS TO AUSTRALIAN PUBLIC HOSPITALS BY SOURCE

PAYMENTS TO AUSTRALIAN PUBLIC HOSPITALS BY SOURCE

NUMBER OF WEIGHTED PUBLIC HOSPITAL SERVICES FUNDED

NUMBER OF WEIGHTED PUBLIC HOSPITAL SERVICES FUNDED

*2015-16 NWAU actual is calculated by the Administrator using 2015-16 actual hospital activity data provided by states and territories. Note: A Commonwealth Treasurer's Federal Financial Relations (National Health Reform Payments) Determination 2015–16 was not made in the 2016–17 financial year. Upon a Determination being made, any resulting annual reconciliation adjustment payments will be incorporated into Commonwealth national health reform payments.

LETTER OF TRANSMITTAL

NHFB logo

Office of the Administrator

GPO Box 1252 Canberra ACT 2601

Telephone: 1300 930 522

Email: nhfa.administrator@nhfa.gov.au

10 October 2017

The Hon. Greg Hunt MP
Minister for Health
Commonwealth of Australia

The Hon. Jill Hennessy MP
Minister for Health
Victoria

The Hon. Roger Cook MLA
Deputy Premier and Minister for Health
Western Australia

The Hon. Michael Ferguson MP
Minister for Health
Tasmania

The Hon. Natasha Fyles MLA
Minister for Health
Northern Territory

The Hon. Brad Hazzard MP
Minister for Health
New South Wales

The Hon. Cameron Dick MP
Minister for Health
Queensland

The Hon. Peter Malinauskas MLC
Minister for Health
South Australia

The Hon. Meegan Fitzharris MLA
Minister for Health
Australian Capital Territory

Dear Ministers,

Administrator of the National Health Funding Pool Annual Report 2016–17

I am pleased to submit to you, for tabling in your respective Parliaments, my Annual Report for the year ended 30 June 2017.

This report has been prepared in accordance with the requirements of sections 241 to 243 of the Commonwealth National Health Reform Act 2011 (the Act) and corresponding state and territory national health reform legislation.

The report includes a combined Financial Statement of the National Health Funding Pool accounts, and a F inancial Statement for each state and territory State Pool Account audited by the respective Auditor -General. The report also includes the reporting required under section 241(2) of the Act on national health reform funding and payments, on a national level and for each state and territory.

Yours sincerely,

Administrator’s signature

Peter Achterstraat AM
Administrator
National Health Funding Pool

MESSAGE FROM THE ADMINISTRATOR

Photo of Peter Achterstraat AM

I am pleased to present my Annual Report for the year ended 30 June 2017, the fifth year of operation of the National Health Funding Pool and the Administrator role. A sustainable public hospital system is important for the health and wellbeing of all Australians, and efficient and effective administration of the funding system is vital. To support this aim, I have discharged my duties independently as a statutory office holder of the Commonwealth, and each state and territory.

An important part of my role has been assisting in the development of the Addendum to the National Health Reform Agreement (the Addendum), providing expert advice on national health reform arrangements to the parties, and bringing leadership to the implementation of the new reforms. I would like to thank all of those stakeholders I have worked with over the past year who enabled this.

The Addendum builds upon the April 2016 Heads of Agreement between the Commonwealth and the States and Territories on Public Hospital Funding. In addition to retaining activity based funding, the Addendum introduces a number of reforms with the aim of improving system sustainability and the quality of care provided to patients.

The Administrator, supported by the National Health Funding Body (NHFB), is responsible for overseeing Commonwealth and state and territory funding and payments.

I would like to acknowledge the work of the NHFB in their role of assisting me to fulfil my responsibilities. The dedication of the small team at the NHFB is to be commended.

This Annual Report details the funding and payments provided to local hospital networks by the Commonwealth and states and territories, which represent the vast majority of hospital services delivered. For 2016–17 a total of $43.4 billion was paid to local hospital networks for services, an increase of $2.0 billion from 2015–16. These payments were made based on a national total of 7,994,351 weighted public hospital services.

Included is a combined financial statement of all jurisdictions, a financial statement for each state and territory Pool account audited by the respective Auditor–General, together with broader national health reform statutory reports.

My role requires strong relationships with states, territories, the Commonwealth and other national health agencies. The development of effective partnerships with all parties has been of great importance to me, and has contributed to the success of national health reform in the past year.

In the coming year, I look forward to further supporting jurisdictions in building a sustainable and transparent public hospital system.

Peter Achterstraat AM
Administrator
National Health Funding Pool


ANNUAL REPORTING: LEGISLATIVE REQUIREMENTS

This reporting is pursuant to the following jurisdictional national health reform legislation:

TABLE 1: JURISDICTIONAL NATIONAL HEALTH REFORM LEGISLATION

JURISDICTION AND RELEVANT ACT REQUIREMENT FOR THE FINANCIAL YEAR COMMONWEALTH National Health Reform Act 2011 NEW SOUTH WALES Health Services Act 1997 VICTORIA Health (Commonwealth State Funding Arrangements) Act 2012 QUEENSLAND Hospital and Health Boards Act 2011
Administrator's Annual Report The Administrator must, within 4 months after the end of each financial year, provide to the responsible Ministers an annual report on the exercise or performance of their functions. s.241(1) schedule 6A
clause 16(1)
s.17(1) s.53S(1)
Financial Statements The Administrator must prepare a financial statement for each State Pool Account and a combined financial statement. s.241(3) and s.242 schedule 6A clauses 16(3) and 17 s.17(3) and s.18 s.53S(3) and s.53T
Audit of Financial Statements A financial statement for the State Pool Account is to be audited by the relevant Auditor–General. s.243 schedule 6A
clause 18
s.19 s.53U
National Health Reform Funding and Payments Reporting The Administrator's annual report must include the: amounts paid into the State Pool Account and State Managed Fund and the number of weighted hospital services funded. s.241(2) schedule 6A
clause 16(2)
s.17(2) s.53S(2)
Tabling of the Annual Report A responsible Minister must cause a copy of the report to be tabled in the Parliament of the relevant jurisdiction. s.241(4) schedule 6A
clause 16(4)
s.17(4) s.53S(4)
JURISDICTION AND RELEVANT ACT WESTERN AUSTRALIA National Health Funding Pool Act 2012 SOUTH AUSTRALIA National Health Funding Pool Administration (South Australia) Act 2012 TASMANIA National Health Funding Administration Act 2012 AUSTRALIAN CAPITAL TERRITORY Health (National Health Funding Pool and Administration) Act 2013 NORTHERN TERRITORY National Health Funding Pool and Administration (National Uniform Legislation) Act 2012
Administrator's Annual Report s.19(1) s.22(1) s.18(1) s.25(1) s.18(1)
Financial Statements s.19(3) and s.20 s.22(3) and
s.23
s.18(3) and s.19 s.25(3)
and s.26
s.18(3)
and s.19
Audit of Financial Statements s.21 s.24 s.20 s.27 s.20
National Health Reform Funding and Payments Reporting s.19(2) s.22(2) s.18(2) s.25(2) s.18(2)
Tabling of the Annual Report s.19(4) s.22(4) s.18(4) s.25(4) s.18(4)