Average non-admitted cost per weighted activity unit 

Rationale

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

The measure ensures that a consistent methodology is applied to calculating and reporting the cost of delivering non-admitted activity against the state’s funding allocation. Non-admitted services play a pivotal role within the spectrum of care provided to the WA public. Therefore, it is important that non-admitted service provision is monitored to ensure the efficient delivery of safe and high-quality care.

Target

The 2024-25 target for average non-admitted cost per WAU is $7,903. Improved or maintained performance is demonstrated by a result below or equal to target.

Results

Commentary

The average non-admitted cost per WAU of $8,902 is $999 above the 2024-25 target of $7,903. The current year’s cost is also $605 higher than the actual cost of $8,297 when compared to the cost per unit in 2023-24. 

Non-admitted activity (also known as ‘outpatient’ activity) continued to grow in 2024-25. This activity is closely related to emergency and inpatient activity with patients prepared for or followed up after admissions, treatment and interventions, alongside being managed in an outpatient setting for chronic conditions to prevent admissions and reduce re-admissions.

As a result of the upward cost trend over the four reported years, outpatient services face parallel challenges to inpatient and emergency services in maintaining efficiency and quality in an environment of escalating costs.

This has directly contributed to the health service being unable to meet the target of $7,903 per non-admitted WAU.