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 2021-22 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 2021-22 budget allocation, it is important that efficiency of service delivery is accurately monitored and reported.
Target
The 2021-22 target for average admitted cost per WAU is $6907. Improved or maintained performance is demonstrated by a result below or equal to target.
Results
| Year | Target | Actual | |
|---|---|---|---|
| Year 2021-22 | Target $6907 | Actual $7197 |
|
| Year 2020-21 | Target $7073 | Actual $6733 |
|
| Year 2019-20 | Target $7026 | Actual $6501 |
|
Please note: 2019-20 and 2020-21 actuals have been restated in accordance with the 2021-22 Outcome Based Management Key Performance Indicator Data Definition Manual
Commentary
The target for 2021-22 was developed by WA Health for all Health Service Providers (HSPs). EMHS has not performed favourably against the 2021-22 target with an average admitted cost per WAU of $7197, which is $290 above the target of $6907. The 2021-22 result is also $464 above the actual average admitted cost per WAU in 2020-21.
EMHS’ performance in 2021-22 was impacted in the first part of the reporting year by the residual effects of changes in elective surgery schedules, which resulted in lower than anticipated inpatient activity. Performance in the latter part of the year was also impacted by increased staffing costs associated with preparing for a ‘surge’ in expected COVID patients attending hospitals and covering staff furloughing as a result of COVID protocols.
Period: 2019-20 – 2021-22 financial years
Contributing sites: Armadale Health Service, Bentley Health Service, Kalamunda Hospital, Royal Perth Hospital, St John of God Midland Public Hospital, St John of God Mount Lawley (contracted services)
Data source: OBM allocation application; Oracle 11i financial system; HMDC extracts; TOPAS; webPAS; Contracted Health Entity’s (CHE) discharge extracts
Outcome one // Efficiency KPI // Service one: Public hospital admitted services