NATIONAL HEALTH FUNDING BODY

The NHFB is part of the Commonwealth health portfolio. It is a non–corporate entity under the Public Governance, Performance and Accountability Act 2013.

The NHFB staff are employed under the Public Service Act 1999.

The NHFB was established under the National Health Reform Amendment (Administrator and National Health Body) Act 2012. This Act amended the National Health Reform Act 2011 (the Act). The Act mandates that the NHFB is independent of both Commonwealth and state/territory governments when assisting the Administrator in the exercise or performance of his functions.

WHAT WE DO

The principal function of the NHFB is to support the Administrator in the performance of his/her functions. Those functions are set out in the Act and the National Health Reform Agreement (the Agreement).

the Administrator is required to:

  • Calculate and advise the Commonwealth Treasurer of the Commonwealth contribution to hospital funding in each state and territory (s.238).
  • Oversee the payment of Commonwealth hospital funding into State Pool Accounts (s.238).
  • Make payments from each State Pool Account in accordance with the directions of the State concerned (common provisions of the National Health Funding Pool legislation in each state and territory).1
  • Monitor state payments into each State Pool Account (common provisions of National Health Funding Pool legislation in each state and territory).2
  • Reconcile estimated and actual service delivery volumes and calculate any necessary payment adjustments, so that Commonwealth payments can be adjusted to reflect the actual level of services provided (s.238).
  • Report publicly on the national health reform funding and payments (s.240).
  • Develop and provide to the states and territories rolling three year data plans (Clause 85).
  • Undertake data matching of hospital activity and Medical Benefits Schedule (MBS) and Pharmaceutical Benefits Scheme (PBS) to determine if eligible for funding (Clause A6).

1 A list of the relevant state/territory legislation containing the common provisions can be found at page 26.

2 As above.

PUBLIC HOSPITAL FUNDING

Table 1 provides an overview of the public hospital funding, including activity based, block and public health funding, for 2014–15 and 2013–14 for each state and territory.

Table 1: Funding by source – 2014–153

Table 1: Funding by source – 2014–15
STATE / TERRITORY
Amount paid by state/territory ($’000)
Amount paid by Commonwealth ($’000)
Total funding ($’000)

NSW

6,276,974

4,861,029

11,138,003

VIC

4,585,151

3,863,243

8,448,394

QLD

6,114,211

3,059,520

9,173,731

WA

2,314,255

1,750,357

4,064,612

SA

2,154,468

1,125,562

3,280,030

TAS

635,386

333,410

968,796

ACT

567,279

310,958

878,237

NT

734,568

159,411

893,979

TOTAL

23,382,292

15,463,490

38,845,782

3 The values in the above table are rounded to the nearest thousand dollars. As such, the figures may not add to the totals shown due to the rounding.

Table 2: Funding by source – 2013–144

Table 2: Funding by source – 2013–14
STATE / TERRITORY
Amount paid by state/territory ($’000)
Amount paid by Commonwealth ($’000)
Total funding ($’000)

NSW

6,449,417

4,342,849

10,792,266

VIC

4,481,171

3,483,176

7,964,347

QLD

5,394,654

2,814,967

8,209,622

WA

2,768,835

1,518,400

4,287,236

SA

2,083,070

1,007,904

3,090,974

TAS

635,683

292,447

928,130

ACT

552,438

275,181

827,618

NT

661,393

134,590

795,983

TOTAL

23,026,661

13,869,514

36,896,175

4 The values in the above table are rounded to the nearest thousand dollars. As such, the figures may not add to the totals shown due to the rounding.

Of the total funding provided by the Commonwealth, states and territories, Figure 1 shows the relative proportions of each funding stream.

Figure 1: Funding streams – 2014–15 and 2013–14 proportions

Figure 1: Funding streams – 2014–15 proportions
Figure 1: Funding streams – 2013–14 proportions

Table 3: Funding and payments – 2014–155

Table 3: Funding and payments – 2014–15
TRANSACTION TYPE
($’000)

Total public hospital funding

38,845,781

Total payment for public hospital services

39,075,826

Total value of transaction processed

77,921,607

5 The values in the above table are rounded to the nearest thousand dollars. As such, the figures may not add to the totals shown due to the rounding.

Table 4: Funding and payments – 2013–146

Table 4: Funding and payments – 2013–14
TRANSACTION TYPE
($’000)

Total public hospital funding

36,896,175

Total payment for public hospital services

37,000,111

Total value of transaction processed

73,896,287

6 The values in the above table are rounded to the nearest thousand dollars. As such, the figures may not add to the totals shown due to the rounding.

Further information on national health reform payments into and out of the Funding Pool and state managed funds, is available in the Administrator’s monthly reports and Annual Reports, available at publichospitalfunding.gov.au.

Who we are

Photo of National Health Funding Body Staff

(From Left to Right) First row: Val Price–Beck, Beth Gubbins, Lynton Norris, Svetlana Angelkoska. Second row: Bessie Zhou, Yuping Chan, Peta Hunt, Gitanjali Kaura, Julie Valeri, Sara McClintock, Animesh Agrawal (SAS Institute). Third row: Stephen Kwan, Vincent Lorimer, Peter Xu (SAS Institute), Sheila Holcombe, Karim Ehtisham, Susan O’Neil.

Image of organisation structure page 1
Image of organisation structure page 1

Chief Executive Officer

Lynton Norris

Photo of Lynton

As Chief Executive Officer of the National Health Funding Body, Lynton Norris has over 20 years of experience in government and the private sector. Lynton provides strategic vision and operational excellence in a dynamic environment. Lynton is a respected leader in health funding and policy design, and is leading significant change and reform in hospital and health funding arrangements. Prior to his appointment to the NHFB, Lynton was a senior executive in the Victorian State Government. Lynton has significant experience in public sector finance and policy development, has degrees in International Trade and Accounting, and is a Certified Practising Accountant.

Finance and reporting
Policy and strategy

Director, Beth Gubbins

Photo of Beth

Beth Gubbins has experience in finance and public policy, as well as project development, management and delivery. Before joining the NHFB, Beth worked for the Victorian Department of Health in a number of strategic finance and policy roles. Beth is a Certified Practising Accountant with more than 15 years of public sector experience in Australia and the United Kingdom. During 2014–15, Beth led the strategic agenda of the NHFB and assumed the role and functions of the Chief Finance Officer. Beth represented the NHFB on national committees and working groups, and was instrumental in progressing the NHFB’s work programme.

Integrity, assurance and resourcing

Director, Val Price–Beck

Photo of Val

Val Price–Beck has over 20 years’ public service experience, and has worked for the NHFB since 2012. Val has experience in corporate services and related functions. Prior to joining the NHFB, Val worked for a number of years in Indigenous economic development. In addition to providing corporate support services to the NHFB, during 2014–15 Val and her team were instrumental in developing an integrity framework that provided certainty over the accuracy of the Administrator’s advice to the Commonwealth Treasurer on the Commonwealth funding contribution for public hospital services. Val also oversaw the implementation of a number of elements of the Public Governance, Performance and Accountability Act 2013 and associated Rules into the NHFB.

Data modelling and analysis

Director, Svetlana Angelkoska

Photo of Svetlana

Svetlana Angelkoska is an expert analyst and strategic leader, specialising in complex data. She manages high–risk, high–exposure projects, and has extensive experience in analysing, modelling and reporting health and related data. Prior to joining the NHFB, Svetlana worked for the Commonwealth Department of Health. Svetlana holds a Bachelor of Science and a Graduate Certificate of Actuarial Techniques. Svetlana led the ‘data matching’ work between hospital activity and MBS/PBS data, which has provided new and unique insights in health service and resource utilisation from a whole system perspective. Svetlana also played a pivotal role in the development of the growth calculation models that enables the Administrator to accurately calculate the Commonwealth funding contribution to local hospital networks.

OUR HISTORY – our future

The NHFB was created to provide support and assistance to the Administrator. The NHFB is a non–corporate entity under the Public Governance, Performance and Accountability Act 2013, and forms part of the Commonwealth health portfolio.

The NHFB is independent of both Commonwealth, and state and territory governments when exercising or performing the responsibilities and functions of the Administrator as set out in the Act, and supporting national health reform legislation enacted in all states and territories.

2011–12: Enabling legislation

On 1 July 2011, the Act established the Australian Commission on Safety and Quality in Health Care, the National Health Performance Authority, and the Independent Hospital Pricing Authority.

On 25 June 2012, the Parliament of Australia gave assent to the National Health Reform Amendment (Administrator and National Health Funding Body) Act 2012, which established the Administrator of the National Health Funding Pool and the NHFB. An Acting Administrator was appointed on 27 June 2012, and the first staff member was recruited in June 2012.

2012–13: Year One

The NHFB commenced operations from 1 July 2012. The Acting CEO of the NHFB commenced on 23 July 2012, and was appointed permanently on 2 February 2013 for a period of five years.

From establishment, the then Department of Health and Ageing managed the NHFB’s appropriation, until it was able to directly receive and manage these arrangements as a stand–alone independent agency.

The Department of Health and Ageing also provided support to the NHFB to develop its business, financial and corporate operations under a shared services’ Memorandum of Understanding. The NHFB developed the key strategic framework documents relating to the Administrator’s functions, and the documents required of a Commonwealth agency.

On 7 November 2012, the Administrator’s Public Hospital Funding website publichospitalfunding.gov.au was launched, with the publication of the first three monthly reports.

2013–14: Year Two

In 2013–14 the inaugural NHFB Annual Report 2012–13 was tabled on 31 October 2013 and the NHFB website nhfb.gov.au went live on 1 November 2013.

The NHFB worked with the Commonwealth, states and territories on reconciliations between estimated and actual service volume data, to ensure that all local hospital networks received Commonwealth funding based on their actual activity.

The first reconciliation (for the six month period July to December 2012) of estimates to actual was undertaken, and adjustments were made in the October to December 2013 payments. The annual reconciliation of service estimates and actual activity – in relation to 2012–13 – was made in the March to May 2014 payments.

The NHFB processed $74 billion in transactions through the Payments System.

Functionality upgrades to the Payments System were undertaken in December 2013, April 2014 and June 2014.

The NHFB undertook a permanent recruitment round from July to October 2013. A Determination under Section 24(1) of the Public Service Act 1999 was put in place to cover conditions of employment until an Enterprise Agreement was agreed.

2014–15: Year Three

During 2014–15 the NHFB met its regulatory and compliance responsibilities and undertook data analysis work with the Commonwealth, states and territories as part of the Administrator’s data matching activities.

The NHFB Annual Report 2013–14 was tabled on 28 October 2014. The NHFB reported on its performance against qualitative and quantitative outcomes in the 2013–14 Portfolio Budget Statement.

the Administrator’s Three Year Data Plan 2015–16 to 2017–18 was submitted to the Council of Australian Governments’ Health Council (CHC) on 17 March 2015 and released on 29 June 2015.

The Commonwealth, states and territories provided data to the NHFB for payment, reconciliation and reporting purposes. The six month and annual reconciliations were undertaken in September to November 2014 and March to May 2015 respectively.

The NHFB produced 1,800 monthly reports at a national, state and territory, and local hospital network level, on the transactions through the State Pool Accounts and state managed funds during the financial year.

The NHFB processed $78 billion in transactions through the Payments System.

2015–16: Year four

During 2015–16, the NHFB will continue to deliver on its legislated mandate, including building and developing the Commonwealth contribution calculation funding model. To enhance the transparency of the Commonwealth contribution calculations, the NHFB will move the model to a more dynamic platform.

The NHFB will work with the Commonwealth, states and territories on the Administrator’s data matching activities, to move the work from a proof–of–concept to an operational stage, through strengthening the business rules.

The NHFB will continue the data analysis work commenced in 2014 – to provide new insights and understanding into health utilisation and cost from a whole–of–system perspective.

Additionally in 2015-16 the NHFB will continue its focus on:

  • Maintaining rigour and discipline in undertaking transactions into and out of the Funding Pool. The NHFB will effectively manage the largest financial contribution to Australia’s public health system.
  • Continuing to use best–practice. The NHFB will maintain robust financial frameworks through the application of the 2015–16 integrity framework and ongoing quality assurance activities.
  • Continued transparency though the ongoing publication of Commonwealth, state and territory contributions to public hospital funding.
  • Undertaking time series/trend analysis. The NHFB will use the data and information generated within the Administrator’s scope under the Agreement to provide de–identified time series and trend analysis.
  • Delivering more services of value to the Commonwealth, states and territories. The NHFB will work with the Commonwealth, states and territories to address requests for additional data and financial services.
  • Contributing to strategic national work on health data standards, collection, access and usage. The NHFB will work through national committees and working groups, such as the National Health Information and Performance Principal Committee and its subcommittee the National Health Information Standards and Statistics Committee.
  • Further collaborations with stakeholders. The NHFB values the collaborative relationships built with stakeholders and will maintain and strengthen these relationships through the 2015–16 to 2017–18 Stakeholder Engagement Plan.
Secretary’s Citation for Outstanding Community Service

Community service profile: National Health Funding Body and National Health Performance Authority

In December 2014, staff from the NHFB and National Health Performance Authority went above and beyond their usual role with their quick actions to help a person in danger. A construction worker was injured in an accident in an area of the office building under renovation. The quick thinking and composure of the staff under pressure ensured the injured man was attended to in a timely and safe manner.

The Secretary, Mr Martin Bowles, was so impressed by the staff’s response to this incident that he created a new Australia Day award category – the Secretary’s Citation for Outstanding Community Service.

A staff member from NHFB visited the injured worker in hospital and, thankfully, his injuries – although very serious – were not life threatening. The injured man expressed his thanks to the staff involved for the assistance they provided.

Photo of recipients of the Secretary's Citation

ACHIEVEMENTS

MAJOR PUBLICATIONS

Each year the NHFB publishes a suite of documents that guide and support the work of the organisation, and report publicly on the NHFB’s performance. The main focus of the publication schedule for the NHFB is the publication of financial and data specification documents which support the work of the Administrator. These are listed in Table 5.

Table 5: Strategic, Operational and Compliance Documents developed on behalf of the Administrator

Table 5: Strategic, Operational and Compliance Documents developed on behalf of the Administrator
Date
Publication

1 Jul 2014

States and Territories Procedures Manual v3.0

28 Jul 2014

2013–14 Reconciliation Framework

29 Aug 2014

June 2014 Quarter Compliance Report

26 Nov 2014

September 2014 Quarter Compliance Report

4 Mar 2015

December 2014 Quarter Compliance Report

3 Jun 2015

March 2015 Quarter Compliance Report

25 Jun 2015

Data Compliance Policy (updated)

29 Jun 2015

Administrator’s Three Year Data Plan 2015–16 to 2017–18

29 Jun 2015

Administrator’s Data Plan 2015–16 – File Specifications

29 Jun 2015

States and Territories Procedures Manual v4.0

In addition to the publications developed for the Administrator, the NHFB also developed the following:

NHFB’s Annual Report 2013–14

The NHFB’s Annual Report 2013–14 was tabled on 28 October 2014 for the financial year ended 30 June 2014. This publication reported against the 2013–14 Portfolio Budget Statements on the work undertaken by the NHFB.

Administrator’s Annual Report 2013–14

the Administrator’s Annual Report 2013–14 was tabled on 28 October 2014 for the financial year ended 30 June 2014. This publication reported on the second year of operation of the Funding Pool from 1 July 2013 to 30 June 2014.

NHFB Corporate Plan 2015–16

This plan was prepared in 2014–15 for the reporting period 2015–16 to 2016–19. It is prepared in accordance with paragraph 35(1)(b) of the Public Governance Performance and Accountability Act 2013.

NHFB Respect Charter

The staff of the NHFB developed a Respect Charter to guide the behaviour of staff, to contribute to their health, safety and wellbeing, and to ensure a culture free of bullying and harassment. The NHFB Respect Charter is an excellent example of how the staff have worked collaboratively to implement legislative and regulatory requirements.

Stakeholder Engagement Plan

In 2014–15, the NHFB worked closely with its stakeholders to refine national health funding arrangements. The NHFB developed a draft Stakeholder Engagement Plan 2015–18, which will be published in 2015–16, in consultation with the Commonwealth, states and territories.

Growth and Funding Guarantees

This publication, which was published on 29 August 2014, sets out the approach and process the Administrator adopted in 2014–15 in calculating the growth and funding guarantee clause of the Agreement.

COMMUNICATION

The NHFB website provided a communications channel for our stakeholders and the general public. The website enables us to meet our obligations with regard to Senate Order reporting and Freedom of Information requests. The NHFB website is available at nhfb.gov.au.

In 2014–15, the NHFB website had 15,732 page views and 6,760 unique users.

The NHFB continued to update the Administrator’s Public Hospital Funding website, found at publichospitalfunding.gov.au.

In 2014–15 the Public Hospital Funding website had 65,822 page views and 15,969 unique visitors. Users in Australia made up 86.15% of visits to the site. The majority of visits to the site (72%) were from returning visitors.

Presentations

The NHFB made a number of presentations to the Commonwealth, states and territories in 2014–15, including on emerging tasks and opportunities.

The NHFB was invited to present at the 2015 Activity Based Funding Conference held at the Adelaide Convention Centre, 27–29 May 2015.

The Chief Executive Officer, Lynton Norris, presented Data matching of hospital activity and MBS claims: an unexpected journey – co–authored by Beth Gubbins and Svetlana Angelkoska. See page 16 for the presentation abstract.

Implemented Part 2 of the Public Governance, Performance and Accountability Framework for Internal Control and Accountability.

ACTIVITY BASED FUNDING CONFERENCE – ADELAIDE 27–29 MAY 2015

Data matching of hospital activity and MBS claims: an unexpected journey

Presenter: Lynton Norris

Authors: Lynton Norris, Beth Gubbins, Svetlana Angelkoska

National Health Funding Body, Canberra

Under the National Health Reform Agreement (the Agreement), the Administrator of the National Health Funding Pool (the Administrator) has responsibility for determining the Commonwealth’s funding contribution for public hospitals, based on the actual volume of services provided, a total of approximately $15 billion each year.

To ensure that the Commonwealth does not pay for the same service twice (as per Clause A6 of the Agreement), the Administrator, through the National Health Funding Body (NHFB), undertakes ‘data matching’ between the patient level activity data provided by states and territories (~30 million hospital records), and MBS and PBS claims data provided by the Commonwealth (~470 million MBS records, ~300 million PBS records).

This task has never been undertaken before, and the considerations have been many and varied. The sheer volume and sensitivity of the data require that the processing environment is capable of receiving, storing, linking and analysing the data in a highly secure manner. In addition to this capacity and capability, an understanding of the data at the data element level is essential – how reliable is a data element and what are the relationships between the data elements? Developing business rules to determine what constitutes a ‘match’ (potential double–billing) has been an integral step to provide transparency and to avoid ‘false positives’.

In addition to operational and technical considerations, clinical considerations have also been an important component. To ensure that identified matches are definite instances of double–billing, it has been necessary to understand clinical practices within the hospital and those that give rise to MBS and/or PBS claims.

In order to test the validity of the process and the integrity of the business rules, the matching activities have so far been undertaken on a proof–of–concept basis. This has enabled all parties to follow the process, view the results, and provide valuable feedback.

The outcomes of the proof–of–concept have indicated that there appears to be double–billing occurring, and that the process developed to identify these instances is sound (specifically the middle days of an acute admitted stay with double–billed MBS claims). The next phase is to confirm the validity of the matches by allowing states and territories to view certain data elements of the MBS claim that pertain to a hospital service. This will enable states and territories to investigate specific instances, as well as trends in billing practices.

Further work to enhance and refine the matching process for the day–of–admission and day–of–discharge of acute admitted stays, as well as emergency department and non–admitted services, is being progressed. So too is analysis of these settings with respect to incidences of double–billed PBS claims.

An added benefit of undertaking the proof–of–concept has been the learnings gained. Interrogating the data at the patient level, whilst maintaining the privacy of the patient, has produced insights into trends and an understanding of patients’ continuum of care. It is anticipated that sharing these insights can lead to improved practices, more efficient allocation of resources, and enable system managers and hospitals alike to improve services planning and delivery.

MONTHLY REPORTS

For the 2014–15 financial year, the NHFB produced a total of 1,800 monthly reports for the Administrator.

Each month a national report, a state report for each state and territory, and a report for each local hospital network, are produced.

Section 240 of the Act requires that the Administrator provide monthly reports to the Commonwealth and each state and territory, and to make them publicly available. The reports must contain:

  • Amounts paid into each State Pool Account and state managed fund by the relevant state, and the basis on which the payments were made.
  • Amounts paid into each State Pool Account by the Commonwealth, and the basis on which the payments were made.
  • Amounts paid from each State Pool Account to local hospital networks, a state managed fund or other organisations or funds, and the basis on which the payments were made.
  • Amounts paid from each state managed fund to local hospital networks or other organisations or funds, and the basis on which the payments were made.
  • Number of public hospital services funded for each local hospital network (including as a running financial year total), in accordance with the system of activity based funding.
  • Number of other public hospital services and functions funded from each State Pool Account or state managed fund (including a running financial year total).

the Administrator’s monthly reports are available from: publichospitalfunding.gov.au/reports.

Built the 2015-16 Commonwealth contribution calculation model, including internal and external quality assurance.

Developed an integrity framework, to provide assurance over the Administrator’s advice to the Commonwealth Treasurer on the Commonwealth contribution to hospital services.

Table 6 shows the release dates for the the Administrator’s monthly reports published for 2013–14 and 2014–15.

Table 6: Monthly Reports for 2013–14 and 2014–15

Table 6: Monthly Reports for 2013–14 and 2014–15
2014–15
2013–14

July 2014
(released on 18.9.2014)

July 2013
(released on 30.10.2013)

August 2014
(released on 10.10.2014)

August 2013
(released on 13.11.2013)

September 2014
(released on 29.10.2014)

September 2013
(released on 5.12.2013)

October 2014
(released on 5.12.2014)

October 2013
(released on 30.1.2014)

November 2014
(released on 21.1.2015)

November 2013
(released on 20.2.2014)

December 2014
(released on 13.2.2015)

December 2013
(released on 20.2.2014)

January 2015
(released on 20.3.2015)

January 2014
(released on 28.3.2014)

February 2015
(released on 15.4.2015)

February 2014
(released on 28.3.2014)

March 2015
(released on 8.7.2015)

March 2014
(released on 7.5.2014)

April 2015
(released on 4.9. 2015)

April 2014
(released on 5.6.2014)

May 2015
(released on 4.9.2015)

May 2014
(released on 2.7.2014)

June 2015
(released on 16.10.2015)

June 2014
(released on 7.8.2014)

Provided MBS data to the states and territories to verify the Administrator’s Business Rules (enabled by the provision of public interest certificates by the Commonwealth Department of Health).

DATA MATCHING

Under clauses A6 and A7 of the Agreement, the Commonwealth will not fund patient services through the Agreement if the same service or any part of that service is funded through MBS, PBS, or any other Commonwealth programme.

Since the commencement of the national health reform funding arrangements, the NHFB, in collaboration with the Commonwealth, states and territories, has worked on business rules to progress matching of hospital activity and MBS claims data; and hospital activity and PBS claims data, to ensure funding compliance with legislative requirements.

The data matching process enables the Administrator, as part of his/her statutory role and function, to be assured of the funding integrity by enabling the identification of services that have been funded by the Commonwealth more than once.

In 2014–15 data matching was undertaken as a ‘proof–of–concept’ in collaboration with the Commonwealth, states and territories. This is the first time that any entity has been permitted to undertake data matching with these datasets. In this privileged position, the NHFB has worked thoroughly and carefully through the process to ensure its veracity and reliability.

The data matching activity undertaken in 2014–15 has facilitated jurisdictional discussion regarding funding integrity, and enabled future work on the measurement and identification of relationships between services, needs and the associated cost–benefits.

For matched claims MBS and PBS patient level data were provided by the Commonwealth to states and territories (through Public Interest Certificates issued).

This is the first time that patient identified MBS and PBS data have been shared with jurisdictions in this manner.

REPORT ON PERFORMANCE

The NHFB Agency Budget Statement for 2014–15 included outcomes, objectives, deliverables and key performance indicators.

The NHFB’s outcome is: Provide transparent and efficient administration of Commonwealth, state and territory funding of the Australian public hospital system and support the obligations and responsibilities of the Administrator.

Table 7 describes our performance outcomes.

Table 7: NHFB outcomes against the 2014–15 Portfolio Budget Statement

Table 7: NHFB outcomes against the 2014–15 Portfolio Budget Statement
Objective: Assist the Administrator to ensure the National Health Funding Pool operations are in accordance with directions from the responsible state or territory minister, and in line with the Agreement

Qualitative Deliverable

Performance Outcome

Maintain proper records and reporting in relation to the administration of the National Health Funding Pool, including records of all payments made to and from those accounts, and the basis on which the payments were made.

2014–15 PBS Reference Point or Target
Monthly publication and verification from the states and territories in relation to the operations of the National Health Funding Pool and state managed funds.

Payment for hospital services through the National Health Funding Pool were overseen and authorised. Appropriate protocols and procedures were in place to manage payments.

All payments made in accordance with authorised documentation at the direction of ministers and/or their delegates.

Verification from the states and territories in relation to the operations of the National Health Funding Pool and state managed funds.

Monthly verification of transactions through the National Health Funding Pool and state managed funds.

Objective: Assist the Administrator to transparently report on the operations of the National Health Funding Pool and state managed funds, as outlined in the Agreement

Qualitative Deliverable

Performance Outcome

Annual report of the National Health Funding Pool to the Commonwealth, and state and territory Governments.

2014–15 PBS Reference Point or Target Produce and table a single annual report and accompanying financial statements on the operation of the National Health Funding Pool in the Commonwealth Parliament, and each state and territory parliament. The annual report will include combined financial statements for the National Health Funding Pool, and financial statements for each state or territory state pool account, audited by the respective Auditor–General.

The 2013–14 Annual Report for the Administrator of the National Health Funding Pool was submitted to all Australian Health Ministers for tabling and is available from: publichospitalfunding.gov.au/publications/annual-reports

Financial statements were prepared for each State Pool Account, and were audited by the relevant Auditor–General.

Public reporting on the operations of the state managed funds and National Health Funding Pool.

2014–15 PBS Reference Point or Target Produce monthly reports on the operation of the state managed funds and the National Health Funding Pool.

Monthly reports were produced and published.

1,800 monthly reports were produced in total for 2014–15, including National Reports, a report for each state and territory,
and a report for each local hospital network, for each month.

The Administrator’s monthly reports are available from: publichospitalfunding.gov.au/reports

Table 8: Qualitative Key Performance Indicators for Programme 1.1

Table 8: Qualitative Key Performance Indicators for Programme 1.1
Objective: Assist the Administrator to calculate the Commonwealth contribution to the National Health Funding Pool

Qualitative Indicator

Performance Outcome

Calculate the Commonwealth contribution to the National Health Funding Pool.

2014–15 PBS Reference Point or Target The calculation informs the Administrator’s advice to the Treasurer and under the Agreement, Commonwealth funding will include a 45% contribution to efficient growth in public hospital services in 2015–16.

2014–15 and 2015–16 Commonwealth Contribution Models were developed and presented to stakeholders, and used by the Administrator to calculate the Commonwealth funding contribution for each state and territory.

The Administrator advised the Commonwealth Treasurer, and state and territory health ministers of the Commonwealth funding calculation amounts throughout the year.

All funding and payment transactions were effectively monitored and managed.

Objective: Assist the Administrator to ensure the National Health Funding Pool operations are in accordance with directions from the responsible state or territory minister,
and in line with the Agreement

Qualitative Indicator

Performance Outcome

Oversee and authorise all payments for public hospital services through the National Health Funding Pool, as required under the Agreement.

2014–15 PBS Reference Point or Target Improvements to the National Health Funding Administrator Payments System allow the NHFB, and states and territories, greater flexibility in managing payments.

Payment for hospital services through the National Health Funding Pool were overseen and authorised through the National Health Funding Administrator Payments System.

Objective: Assist the Administrator to ensure the National Health Funding Pool operations are in accordance with directions from the responsible state or territory minister,
and in line with the Agreement

Qualitative Indicator

Performance Outcome

Percentage of payments made in accordance with directions from the responsible state or territory Minister.

2014–15 Budget Target 100%

100%