This Annual Report details the activities of the National Health Funding Body (NHFB) from 1 July 2016 to 30 June 2017.

The NHFB Chief Executive Officer is required to prepare and present this report 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, and 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 issued by the Department of Finance.

Administrator National Health Funding Pool Annual Report 2016-17

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

Note on cover: The $43.4 billion in payments to Australian public hospitals represent the amounts 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 98).

FURTHER INFORMATION

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

NATIONAL HEALTH FUNDING BODY

GPO Box 1252 Canberra ACT 2601

1300 930 522

nhfb.enquiries@nhfb.gov.au

nhfb.gov.au

An accessible copy of this Annual Report is available online at nhfb.gov.au/publications.

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 16-17
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 Administrator, please see the Administrator of the National Health Funding Pool 2016–17 Annual Report or publichospitalfunding.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

NUMBER OF WEIGHTED PUBLIC HOSPITAL SERVICES FUNDED

NUMBER OF WEIGHTED PUBLIC HOSPITAL SERVICES FUNDED

PAYMENTS TO AUSTRALIAN PUBLIC HOSPITALS BY SOURCE

PAYMENTS TO AUSTRALIAN PUBLIC HOSPITALS BY SOURCE

*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

Letter of transmittal

Contents

Photo of Mr Lynton Norris

Message from the CEO

I am pleased to present the NHFB Annual Report for the financial year ended 30 June 2017. The past year has been one of the most dynamic in our history, with the NHFB playing a significant role in informing and advising on arrangements for public hospital funding for 2017 to 2020.

Our primary function is to assist the Administrator of the National Health Funding Pool (the Administrator) to calculate the amount of Commonwealth funding to public hospitals in each state and territory under the National Health Reform Agreement, and to administer the National Health Funding Pool (Funding Pool).

Since the commencement of the national health reform requirements in 2012, the NHFB has successfully supported the respective Administrators in delivering on his obligations and responsibilities.

In 2016–17 the NHFB:

  • administered and publicly reported on $43.4 billion in Commonwealth, state and territory payments to local hospital networks and other providers;
  • maintained a high level of accuracy and integrity in the calculation of $18.6 billion in Commonwealth national health reform funding;
  • made 5,239 transactions through the Funding Pool in accordance with the directions of relevant Ministers; and
  • published 1,788 monthly reports on national, state and territory, and local hospital networks on the publichospitalfunding.gov.au website.

The development of the Addendum to the National Health Reform Agreement (the Addendum) was also a major focus of 2016–17. At the request of the Commonwealth, states and territories (via the Department of the Prime Minister and Cabinet), the NHFB assisted the Administrator in providing expert advice on the new national health reform arrangements.

I am extremely proud to have contributed to the successful negotiation of the Addendum. Detailed modelling of policy proposals and scenarios assisted Commonwealth, state and territory governments in agreeing to revised hospital funding arrangements.

Our expertise was recognised with additional funding in the 2017–18 Commonwealth Budget to support the implementation of the Addendum. The NHFB will work closely with the Commonwealth, states and territories to implement the initiatives of the Addendum in 2017–18.

Our team of highly qualified professionals is integral to the performance of the NHFB. We have worked hard to improve the broader capability of the agency and how it successfully assists the current Administrator, Mr Peter Achterstraat AM, and myself, to serve all Governments of Australia. Together we have created a culture that promotes independence, commitment, quality and transparency.

Finally, I would like to thank the NHFB team for their leadership and contribution to the health reform agenda, delivering on our vision of “Improved health outcomes for all Australians, sustainability of a nationally unified and locally controlled Australian health system, and increased transparency in public hospital funding.”

Mr Lynton Norris
Chief Executive Officer
National Health Funding Body