Budget Allocations

Northern NSW Local Health District Initial Budget Allocations and Activity

Northern NSW LHD remains committed to Activity Based Funding (ABF) as a corner stone of budget transparency and devolution, providing patient-focused insight for decision-making in health care.

The LHD Service Agreement with the MOH provides the basis on which anticipated patient volumes are notified to the Administrator of the National Health Funding Pool.

All hospitals to be included in the Purchasing Framework from 2020/21, this is a change as small hospitals have not previously been included in the model.

NSW State Price

The NSW State Price per National Weighted Activity Unit (NWAU20) applicable for 2020/121 is $4,727. This price is not directly comparable with last year’s State Price as IHPA, in its annual National Efficient Price Determination, has further refined the NWAU price weight values. The 2020/21 State Price reflects year on year changes in average cost per NWAU which are influenced by productivity improvements, changes in input cost, better capture and reporting of activity and refinements in standardisation of cost allocation.

Purchasing Model Improvements

In 2020/21, The NSW Treasury Outcome Budgeting initiative intends to transform the way budget decisions are made, and resources are managed in the NSW public sector The overarching objective of Outcome Budgeting is to shift the focus of the NSW Government to deliver better outcomes for the people of NSW with increased transparency, accountability and value.

NSW Health has identified five state outcomes that it will achieve for the people of NSW. The state outcomes cover the broad range of functions and services provided across care settings.

  1. Keeping people healthy through prevention and health promotion
  2. People can access care in and out of hospital settings to manage their health and wellbeing
  3. People receive timely emergency care
  4. People receive high-quality, safe care in our hospitals
  5. Our people and systems are continuously improving to deliver the best health outcomes and experiences

Further technical information regarding the NSW Small Hospitals funding model is available in the NSW Activity Based Management (ABM) and Activity Based Funding (ABF) Compendium 2020/21.