Letter of transmittal

Letter of Transmittal

Our Vision

Improved health outcomes for all Australians, sustainability of a nationally unified and locally controlled Australian health system, and increased transparency in public hospital funding.

Our Mission

To support the obligations and responsibilities of the Administrator of the National Health Funding Pool, by providing transparent and efficient administration of Commonwealth, state and territory funding of the Australian public hospital system.

Our strategic objectives

We have adopted five high–level strategic objectives, which capture the scope of our responsibilities and serve the Vision and Mission of our organisation.

Achieve best practice and accountability

To achieve best practice and accountability through assisting the Administrator in implementing and overseeing a nationally consistent public hospital funding arrangement, through the National Health Funding Pool.

Provide increased transparency and effective reporting

To provide increased transparency and effective reporting on the local hospital networks that are funded for the services they deliver to the community.

Enable accurate Commonwealth contribution calculations

To enable accurate Commonwealth contribution calculations by using nationally consistent pricing and costing standards.

Develop productive and effective partnerships

To develop productive and effective partnerships with relevant stakeholders, enabling the objectives of the Agreement to be achieved.

Operate as a fully functional and compliant agency

To operate as a fully functional and compliant agency, meeting statutory and legislative obligations.

Our Strategic Plan 2013–16 is available from: nhfb.gov.au/publications.

Infographic from key performance data contained in the 2014-15 annual report


This Annual Report details the activities of the National Health Funding Body (NHFB) from 1 July 2014 to 30 June 2015.

The NHFB Chief Executive Officer (CEO) is required to prepare and present this report of operations to the Commonwealth Parliament, pursuant to section 267 of the National Health Reform Act 2011 (the Act) and section 70 of the Public Service Act 1999.

The CEO is also required to provide a copy of this report to each state and territory Health Minister under section 267(2) of the Act.

This Annual Report is prepared in accordance with the Requirements for Annual Reports – for Departments, Executive Agencies and other non–corporate Commonwealth entities, as issued by the Department of the Prime Minister and Cabinet, and approved by the Joint Committee of Public Accounts and Audit.

About this report

The Annual Report 2014–15 records the activities of the NHFB in 2014–15.

This report comprises:

  • narrative that describes our organisation, achievements and governance arrangements in 2014–15
  • the NHFB’s financial statements for 2014–15.

To help readers search for specific information, an index (page 99) and a disclosure index (page 92) for specific reporting requirements have been included.

Health Productivity and Performance Commission

In the 2014–15 Budget, the Commonwealth Government announced an intention to consult with states and territories with a view to establishing a new Health Productivity and Performance Commission. The government has subsequently made a decision to not proceed with the establishment of a Health Productivity and Performance Commission. The Administrator and the NHFB will continue to administer and reconcile payments to public hospitals under the National Health Reform Agreement for the 2015–16 and 2016–17 financial years.

Chief Executive Officer’s Message

Photo of Lynton Norris

It is with pleasure that I present the third National Health Funding Body (NHFB) Annual Report for the financial year ended 30 June 2015.

Our primary function is to assist the Administrator of the National Health Funding Pool (the Administrator) to calculate the Commonwealth contribution to public hospital funding for each state and territory, and to administer the National Health Funding Pool (Funding Pool).

This year has been pivotal for the NHFB. In 2014–15, the NHFB again delivered on its legislative responsibilities, and collaboratively worked with states, territories and the Commonwealth on improving funding transparency for public hospital services.

The NHFB processed $38 billion of Commonwealth, state and territory funding to local hospital networks and other providers in 2014–15. In total, nearly $78 billion in funding and payment transactions were processed through the Funding Pool and state managed funds. Testament to the best practice operations in place at the NHFB, each Auditor–General provided an unqualified audit opinion on the respective Pool account for their state or territory.

For the 2014–15 financial year, the NHFB prepared and published 1,800 monthly reports detailing the funding and payments flows nationally, for each state and territory, and for each local hospital network on the publichospitalfunding.gov.au website. In addition to providing information that our stakeholders use, the public is able to access these reports to better understand the funding investment made by the states, territories and Commonwealth on public hospital services.

The success of the NHFB reflects the professional structure of the organisation and our ability to engage specialist staff as required. The culture of the organisation promotes high achievement. Of significant note was the awarding of a Secretary’s Citation for Outstanding Community Service to a number of NHFB staff, as part of the Australia Day Awards for the Health portfolio. The Secretary’s citation was another example of the excellent attitude possessed by staff of the NHFB, which continues to drive the performance of the agency.

Finally, I would like to thank Mr Bob Sendt who retired from the role of Administrator at the end of July 2015. Mr Sendt provided clear direction, sound judgement and professional expertise to the role of Administrator from 2012 to 2015. Mr Kim Snowball was appointed as Acting Administrator on 1 August 2015. Mr Snowball joins at a very exciting time as the NHFB continues to explore opportunities to provide states, territories and the Commonwealth with improved information and analysis that will lead to improved health outcomes for all Australians.

–Signature omitted–

Mr Lynton Norris
Chief Executive Officer
National Health Funding Body

28 October 2015