Average admitted cost per weighted activity unit

Rationale

This indicator is a measure of the cost per weighted activity unit (WAU) compared with the State target, as approved by the Department of Treasury and published in the 2024-25 Budget Paper No. 2, Volume 1. 

The measure ensures a consistent methodology is applied to calculating and reporting the cost of delivering inpatient activity against the state’s funding allocation. As admitted services received nearly half of the overall 2024-25 budget allocation, it is important that efficiency of service delivery is accurately monitored and reported.

Target

The 2024-25 target for average admitted cost per WAU is $7,899. Improved or maintained performance is demonstrated by a result below or equal to target.

Results

Commentary

EMHS has performed unfavourably against the 2024-25 target with an average admitted cost per WAU of $8,148, which is $249 above the target of $7,899. The 2024-25 result is also $277 above the actual average admitted cost per unit in 2023-24.

The 2024-25 financial year saw increased activity compared to the prior year. This increased activity came at a higher cost than in previous years. Increased staffing costs including increased costs from the outcomes of enterprise bargaining agreements and cost of living increases continued to challenge the Health Service’s efforts to maintain efficiency while delivering high-quality, safe care.