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 2023-24 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 2023-24 target for average non-admitted cost per WAU is $7,325. Improved or maintained performance is demonstrated by a result below or equal to target. 

Results

Commentary

The target for 2023-24 was developed by WA Health for all HSPs. The average non-admitted cost per WAU of $8,297 is $972 above the 2023-24 target of $7,325. The current year’s actual performance is also higher than the actual cost of $7,788 (by $509) when compared to the performance in 2022-23. 

Non-admitted activity (also known as ‘outpatient’ activity) is generally related to inpatient activity, as patients who are discharged from hospital are generally referred into outpatient clinics for follow-up consultations and medication. EMHS non-admitted activity saw an increase in 2023-24 compared to 2022-23, which would account for some of the increase in costs per activity unit. Workforce shortages during the year from vacancies or increased unplanned leave had an impact on the number of outpatient clinics that could be run. Facilities are also at capacity, hampering any ability to increase outpatient clinics to drive economies of scale.

Outpatient costs are also impacted by the same cost pressures and general economic factors, such as inflation and increased costs for goods and services, as other service delivery areas across EMHS and more widely, across the general health system. The upward trend in costs over the 4 reported years demonstrates that outpatient services face the same challenges as other hospital services, in maintaining or improving efficiency in an environment where costs are increasing.