Common use of Activity and Budget Allocation Clause in Contracts

Activity and Budget Allocation. The DHW will monitor actual activity against commissioned levels. The overall activity is capped and the LHN will not be paid for additional activity unless explicitly agreed. • The LHN has the freedom to move activity to other service areas within the activity type as determined by the need of the population or service requirements within the National Weighted Activity Units (NWAU) allocation. • If the LHN wishes to move activity between commissioned activity types and levels (for example, activity moving from acute to outpatient) the LHN must negotiate this with DHW based on a sound needs based rationale. • Activity caps will be monitored at activity type level that will include any specific adjustments have been made. Monitoring will occur through the Performance Review Meetings, and as part of the overall performance framework will form the basis of ongoing discussions with the LHN. • It is the responsibility of the LHN to flow total activity allocations monthly based on seasonality and other trends. • The LHN has a responsibility to actively monitor variances from commissioned activity levels, and to notify the DHW of any potential variance and to take appropriate action to avoid variance exceeding agreed tolerances. • The LHN will notify the DHW of deliberate changes to the consistent recording of activity within the year that would result in activity moving between commissioned activity types and levels. • Any resulting changes to funding and commissioned activity levels will be actioned through the processes outlined in the Agreement. Funding Type Budget ($) Hospital Based Revenue* 47,675,611 Intermediate Care 2,592,389 Revenue is presented by historical budget variations and therefore, flexibility is available in the allocation when building budgets. Funding Type 2019-20 Cap LHN Price ($) Commissioned ($) Acute (admitted) 14,761 8,930 5,134 45,849,090 Emergency Department 17,805 2,059 5,134 10,569,221 Outpatients 24,194 1,584 5,134 8,131,506 Sub-Acute & Non-Acute (admitted) 122 419 5,134 2,150,142 Acute (admitted) 5,269 3,849 5,134 19,759,926 Emergency Department 9,230 1,001 5,134 5,138,996 Outpatients 13,239 679 5,134 3,487,954 Sub-Acute & Non-Acute (admitted) 37 68 5,134 347,972 Site Specifics & Grants 4,399,002 Rebalancing 2019-20 (9,700,000) Other (including Rural Access Grant) 3,493,810 Mental Health 3,501,211 Regional Office (Site Specific) 444,000 Intermediate Care 59,452,565

Activity and Budget Allocation. The DHW will monitor actual activity against commissioned levels. The overall activity is capped and the LHN will not be paid for additional activity unless explicitly agreed. • The LHN has the freedom to move activity to other service areas within the activity type as determined by the need of the population or service requirements within the National Weighted Activity Units Unit (NWAU) allocation. • If the LHN wishes to move activity between commissioned activity types and levels (for example, activity moving from acute to outpatient) the LHN must negotiate this with DHW based on a sound needs based rationale. • Activity caps will be monitored at activity type level that will include any specific adjustments have been made. Monitoring will occur through the Performance Review Meetings, and as part of the overall performance framework will form the basis of ongoing discussions with the LHN. • It is the responsibility of the LHN to flow total activity allocations monthly based on seasonality and other trends. • The LHN has a responsibility to actively monitor variances from commissioned activity levels, and to notify the DHW of any potential variance and to take appropriate action to avoid variance exceeding agreed tolerances. • The LHN will notify the DHW of deliberate changes to the consistent recording of activity within the year that would result in activity moving between commissioned activity types and levels. • Any resulting changes to funding and commissioned activity levels will be actioned through the processes outlined in the Agreement. Funding Type Budget ($) Hospital Based Revenue* 47,675,611 39,728,389 Intermediate Care 2,592,389 2,162,611 Revenue is presented by historical budget variations and therefore, flexibility is available in the allocation when building budgets. Funding Type 2019-20 Cap LHN Price ($) Commissioned ($) Acute (admitted) 14,761 8,930 13,164 9,280 5,134 45,849,090 47,644,326 Emergency Department 17,805 2,059 20,626 2,344 5,134 10,569,221 12,034,329 Outpatients 24,194 1,584 37,724 2,560 5,134 8,131,506 13,145,242 Sub-Acute & Non-Acute (admitted) 122 419 156 299 5,134 2,150,142 1,534,349 Acute (admitted) 5,269 3,849 5,618 4,139 5,134 19,759,926 21,251,679 Emergency Department 9,230 1,001 11,320 1,213 5,134 5,138,996 6,226,529 Outpatients 13,239 679 10,152 635 5,134 3,487,954 3,257,643 Sub-Acute & Non-Acute (admitted) 37 68 80 1,129 5,134 347,972 5,794,618 Site Specifics & Grants 4,399,002 6,083,253 Rebalancing 2019-20 2020 (9,700,00016,900,000) Other (including Rural Access Grant) 3,493,810 2,652,562 Mental Health 3,501,211 3,503,727 Regional Office (Site Specific) 444,000 617,000 Intermediate Care 59,452,56551,390,192