Efficiency of public hospitals
The data presented in this section provide insights into the efficiency of Australia’s largest public hospitals by comparing the costs they incur while providing care to acute admitted patients. A hospital is considered more efficient if it is able to deliver more services while consuming fewer resources. Measuring hospital costs against a measure of hospital output for a given service helps to show how efficient hospitals are compared to other similar hospitals.
The National Weighted Activity Unit (NWAU) was developed by the Independent Hospital Pricing Authority (IHPA) as part of setting the National Efficient Price (NEP) of public hospital services. The NWAU allows different hospital activities to be expressed as a common unit of activity, by accounting for differences in the complexity of patients’ conditions or procedures and legitimate increases in costs. The notional ‘average’ hospital service is worth one NWAU.
Cost per National Weighted Activity Unit (NWAU) is a measure focusing on acute admitted patients whose treatment is eligible for Activity Based Funding. Therefore, the measure does not include any Emergency Department costs prior to a patient’s admission or costs relating to hospital services which are funded by other Commonwealth programmes, such as the Department of Veterans’ Affairs or other sources such as motor vehicle accident insurance, workers’ compensation or public liability damage claims. More about the measure, cost per NWAU.
Cost per NWAU
In 2013–14, the cost per NWAU at this hospital was $4,000, and the total NWAU was 29,510. This result compares to a peer average for cost per NWAU of $4,470. The results include private patients in public hospitals, where 22% of the patients were privately funded.
||Cost per NWAU*
cost per NWAU*
||Percentage of private patients
|* The NWAU for 2011–12 has been calculated using the National Efficient Price Determination 2014–15 (NEP14), and the NWAU for 2012–13 and 2013–14 has been calculated using the National Efficient Price Determination 2015–16 (NEP15).
To view the latest cash funding provided by the National Health Funding Body see the Public Hospital Funding report for this hospital’s Local Hospital NetworkExternal link, opens in a new window.[http://www.publichospitalfunding.gov.au/reports/latest-local-hospital-network?lhnid=vic0000102669].
Comparable Cost of Care is a measure developed by the National Health Performance Authority to assess the relative efficiency of Australia’s largest public hospitals by focusing on the comparable costs of acute admitted patients. It measures the average cost of a unit of activity for acute admitted patients, but unlike the cost per NWAU, it includes costs associated with the care provided in Emergency Departments prior to admission.
Additionally, Comparable Cost of Care includes patients whose treatment is not eligible for funding under the National Health Reform Agreement (NHRA) through Activity Based Funding, such as patients covered by the Department of Veterans’ Affairs or motor vehicle accident and workers’ compensation schemes. More about the measure, Comparable Cost of Care.
Comparable Cost of Care
In 2011–12, the Comparable Cost of Care at this hospital was $4,400, and the total units of activity were 27,418. This result compares to a peer average for Comparable Cost of Care of $4,900.
||Comparable Cost of Care
Comparable Cost of Care
|Total units of activity