Queensland report, April 2013

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In this report:

This report includes the following tables:

This report is issued by the Administrator of the National Health Funding Pool under section 240 of the National Health Reform Act 2011.

This report is prepared on a cash basis. It shows monthly and year-to-date (YTD) National Health Reform (NHR) funding and payments for Queensland for April 2013 as part of the National Health Reform Agreement.

Participation in the National Health Funding Pool – Queensland, April 2013

In signing the National Health Reform Agreement (the Agreement), it was the intention of all states and territories that they would have the necessary legislation in place to enable them to participate in the National Health Funding Pool from 1 July 2012.

However, not all states and territories had their legislation in place by that date. As part of the transition to National Health Reform funding, arrangements were put in place whereby those states and territories received equivalent funding directly from the Commonwealth Treasury, and made payments directly from departmental bank accounts to local hospital networks (LHNs). Although these transactions were not made through state pool accounts and state managed funds, they have been included in this report (and designated as ‘notional payments’ into and out of state pool accounts and state managed funds) to enable national comparability for month and year-to-date reporting periods.

Queensland has participated in the National Health Funding Pool since 1 August 2012.

Local hospital networks and National Health Reform

A local hospital network (LHN) is an organisation that provides public hospital services in accordance with the Agreement. A local hospital network can contain one or more hospitals, and is usually defined as a business group, geographical area or community. Every Australian public hospital is part of a local hospital network.

Note: The term ‘local hospital network’ is a national term. Some states and territories use their own terminology to describe these networks, such as local health districts, health organisations, and hospital and health services.

Under the Agreement, local hospital networks receive funding for the following public hospital services:

  • All admitted and non-admitted services
  • All emergency department services provided by a recognised emergency department
  • Other outpatient, mental health, sub-acute services and other services that could reasonably be considered a public hospital service.

Note: Local hospital networks also receive funding from other sources, including the Commonwealth, states and territories, and third parties for the provision of other specific functions and services outside the scope of the Agreement, for example dental services, primary care, home and community care, residential aged care and pharmaceuticals. For further information on total funding to a particular local hospital network, contact the Queensland Department of Health to view the service agreement for that local hospital network.

Basis for National Health Reform payments – Queensland, April 2013

For the basis of the Commonwealth contribution to NHR funding, see Basis of Commonwealth NHR funding, 2012-13.

The basis used to determine NHR payments to local hospital networks (LHNs) in Queensland for April 2013 was advised by the Queensland Department of Health to be as follows:

In determining the annual funding allocation for hospital and health services in Queensland, the budget has been based on the Queensland activity-based funding (ABF) model adjusted for agreed transition paths. Activity levels are based on purchased levels in 2011-12 and increased where an assessment of health need demonstrates that additional activity should be purchased, and it is within available funding. With regards to services not covered by activity-based funding, block funding has been provided based on funding levels received in 2011-12 increased for Enterprise Bargaining agreements and non-labour escalation. In addition, efficiency requirements have been levied on all hospital and health services to ensure improved productivity and a closer alignment between costs incurred and the national efficient price.

On a monthly basis, the System Manager makes payments to the Hospital and Health Services as related funding is received. The funding received is from a variety of sources with variable timing of receipt. As such there is variability in relation to the amount paid to Hospital and Health Services on a monthly basis. The major factor relating to payment variability is the timing of state appropriation payments.

Reference information

The financial information outlined in the following report is categorised as:

  • NHR funding – when the Commonwealth or state or territory government pays NHR funding into a state pool account or state managed fund.
  • NHR payments – when NHR funding deposited into a state pool account or state managed fund is paid out of the state pool account by the Administrator, or is paid out of the state managed fund by the state or territory.
  • Notional NHR payments – funds paid into and out of departmental bank accounts to local hospital networks that would have been transacted through the state pool account and/or state managed fund had NHR funding arrangements been in place. Notional payments are included in 2012-13 reporting to enable national comparability for month and year-to-date reporting periods.

State pool account transactions

Table 1a – State pool account transactions – Queensland, April 2013

This table shows funding paid into the Queensland state pool account by the Commonwealth and Queensland, and payments out of the state pool account to local hospital networks, the state managed fund, and the Queensland Department of Health for April 2013.

NHR funding by source Paid into state pool account Paid out of state pool account
To local hospital networks To state
managed
fund
To state
health department
Total paid out
($) ($) ($) ($) ($)
Commonwealth
ABF funding
168,916,595 153,963,530 153,963,530
Commonwealth
Block funding
39,152,823 39,152,823 39,152,823
Commonwealth
Other funding
5,064,408 5,064,408 5,064,408
Total C'wealth
funding
213,133,825 153,963,530 39,152,823 5,064,408 198,180,760
Total state/territory
funding
331,084,366 490,556,985 0 490,556,985
Grand Total 544,218,191 644,520,515 39,152,823 5,064,408 688,737,745

See definitions and explanatory notes following table 1b.

Table 1b – State pool account transactions YTD – Queensland, April 2013

Following on from table 1a, this table shows year-to-date (YTD) funding paid into the Queensland state pool account by the Commonwealth and Queensland, and YTD payments out of the state pool account to local hospital networks, the state managed fund, and the Queensland Department of Health as at April 2013. These amounts include notional payments for July 2012.

NHR funding by source Paid into state
pool account
YTD
Paid out of state pool account YTD
To local hospital
networks
YTD
To state
managed fund
YTD
To state health
department
YTD
Total paid out
YTD
($) ($) ($) ($) ($)
Commonwealth
ABF funding
1,748,581,244 1,733,628,179 1,733,628,179
Commonwealth
Block funding
405,291,971 405,291,971 405,291,971
Commonwealth
Other funding
51,698,753 51,698,753 51,698,753
Total C'wealth
funding
2,205,571,968 1,733,628,179 405,291,971 51,698,753 2,190,618,903
Total state/territory
funding
3,426,099,567 3,440,498,799 30 3,440,498,829
Grand Total 5,631,671,535 5,174,126,978 405,291,971 51,698,783 5,631,117,731

Note: Of the total year-to-date amount of $5,631,671,535 shown in Table 1b as paid into the Queensland state pool account, $567,126,486 was notional year-to-date payments.
Of the total year-to-date amount of $5,631,117,731 shown in Table 1b as paid out of the Queensland state pool account, $567,126,486 was notional year-to-date payments.
No payments were made from the Queensland state pool account in July 2012, with payments made directly from departmental bank accounts to local hospital networks.

Commonwealth ABF funding represents Acute admitted public, Acute admitted private, Non-admitted, and Emergency department service categories, which are funded by the Commonwealth through the state pool account and subsequently paid to local hospital networks.

Commonwealth Block funding represents Mental health, Small rural and metropolitan hospitals, Sub-acute, Teaching, training and research, and Other categories, which are funded by the Commonwealth and paid to the state managed fund.

Commonwealth Other funding represents other amounts funded by the Commonwealth, transacted through the state pool account and subsequently paid to state or territory health departments. This currently represents the Commonwealth contribution to public health.

State/territory funding represents funding contributions paid by Queensland into its own state pool account, and subsequently paid to local hospital networks within the state and/or to state or territory health departments.

Note: The grey shaded areas in these tables reflect that these amounts are not applicable for a particular 'paid out' column. For example, Commonwealth block funding is only paid to state managed funds and is not applicable for local hospital networks or state or territory health departments.

NHR funding and payments shown in these tables include GST where applicable.

For more information, see National Health Reform funding and payments.

State managed fund transactions

Table 2a – State managed fund transactions – Queensland, April 2013

This table shows funding paid into the Queensland state managed fund by the Commonwealth and Queensland, and payments out of the state managed fund to local hospital networks and other provider organisations for April 2013.

NHR funding by source Paid into state managed fund Paid out of state managed fund
To local hospital networks To Other Total paid out
($) ($) ($) ($)
Commonwealth Block funding 39,152,823 38,505,620
State/territory Block funding 89,261,629 132,024,527
Total 128,414,452 170,530,147 0 170,530,147

See explanatory notes following table 2b.

Table 2b – State managed fund transactions YTD – Queensland, April 2013

Following on from table 2a, this table shows year-to-date (YTD) funding paid into the Queensland state managed fund by the Commonwealth and Queensland, and YTD payments out of the state managed fund as at April 2013. These amounts include notional payments for July 2012.

NHR funding by source Paid into state
managed fund
YTD
Paid out of state managed fund YTD
To local hospital
networks
YTD
To Other
YTD
Total paid out
YTD
($) ($) ($) ($)
Commonwealth Block funding 405,291,971 404,644,769
State/territory Block funding 944,079,108 944,665,289
Total 1,349,371,078 1,349,310,058 0 1,349,310,058

Block funding represents Mental health, Small rural and metropolitan hospitals, Sub-acute, Teaching, training and research, and Other categories.

Commonwealth Block funding represents Commonwealth block funding contributions paid into the state managed fund from the state pool account, and block payments out of the state managed fund to local hospital networks and other provider organisations.

State/territory Block funding represents Queensland block funding contributions into the state managed fund, and block payments out of the state managed fund to local hospital networks and other provider organisations.

Note: The grey shaded areas in these tables reflect that these block payments cannot at this stage be identified by source of funding (state, territory or Commonwealth contribution).

NHR funding and payments shown in these tables include GST where applicable.

For more, see National Health Reform funding and payments.

NHR funding and payments by service category

Table 3 – NHR funding and payments by service category – Queensland, April 2013

This table shows NHR funding and payments by service category on both a monthly and year-to-date (YTD) basis for Queensland for April 2013. NHR funding and payments are separated into the following service categories – activity-based funding (ABF), block funding, and other funding.

Service category NHR funding NHR payments NHR funding
YTD
NHR payments
YTD
($) ($) ($) ($)
ABF
Acute admitted - public 336,718,249 434,118,799 3,482,543,045 3,482,687,078
Acute admitted - private 26,268,552 33,810,297 271,880,092 271,757,540
Non-admitted 77,874,105 100,542,901 807,700,512 807,923,832
Emergency department 59,051,493 76,048,518 612,003,360 611,758,528
Total ABF (Pool) 499,912,398 644,520,515 5,174,127,008 5,174,126,978
Block
Mental health 18,259,255 23,788,469 191,682,659 188,659,073
Small rural and metro hospitals 55,450,706 69,052,209 581,095,782 547,243,220
Sub-acute 30,338,224 40,976,020 321,028,950 325,314,174
Teaching, training and research 24,366,267 36,713,450 255,563,688 288,093,591
Other 0 0 0 0
Total Block (SMF) 128,414,452 170,530,147 1,349,371,078 1,349,310,058
Other
Public health funding 5,064,408 5,064,408 51,698,753 51,698,753
Overdeposit 0 0 0 0
Cross-border 0 0 0 0
Interest 88,562 0 553,803 30
Total Other (Pool) 5,152,970 5,064,408 52,252,556 51,698,783
Grand Total 633,479,820 820,115,070 6,575,750,643 6,575,135,819

Total ABF (Pool) is an aggregate of both Commonwealth and state or territory NHR funding and payments for activity-based funding (ABF) which is transacted through the state pool account.

Total Block (SMF) is an aggregate of both Commonwealth and state or territory NHR funding and payments for block funding which is transacted through the state managed fund (SMF).

Total Other (Pool) represents other funding and payments, which are transacted through the state pool account, including public health funding, overdeposits, cross-border funding and payments, and interest. State and territory cross-border payments can either be:

  • Paid to the relevant state or territory's local hospital networks - included within ABF and/or block payments in the above table, or
  • Reimbursed to the relevant state or territory where the state or territory's local hospital networks are already being funded for the cost of treating cross-border patients - shown in the Cross-border row under Other in the above table.

Cross-border funding arrangements between states and territories are yet to be put in place for state and territory contributions.

NHR funding and payments shown in these tables include GST where applicable.

For more information, see National Health Reform funding and payments.

NHR payment distribution by local hospital network

Table 4 – NHR payment distribution by local hospital network – Queensland, April 2013

This table shows NHR payments (from state, territory and Commonwealth sources) made to each local hospital network (LHN) in Queensland during April 2013.

NHR payments distributed to local hospital networks (LHNs) are separated into an activity-based funding (ABF) component and a block component.

Local hospital network (LHN) ABF component
(ex GST)
Block component
(ex GST)
Total NHR payments
(ex GST)
($) ($) ($)
Cairns and Hinterland Hospital and Health Service 39,319,966 9,449,700 48,769,666
Cape York Hospital and Health Service 0 4,321,526 4,321,526
Central Queensland Hospital and Health Service 20,130,716 11,487,358 31,618,074
Central West Hospital and Health Service 0 3,329,073 3,329,073
Children's Health Queensland Hospital and Health Service 20,652,106 3,290,216 23,942,322
Darling Downs Hospital and Health Service 20,087,044 22,146,011 42,233,055
Gold Coast Hospital and Health Service 58,910,678 9,786,842 68,697,520
Mackay Hospital and Health Service 16,254,336 8,137,065 24,391,401
Mater Misericordiae Health Service Brisbane 41,547,227 1,934,994 43,482,221
Metro North Hospital and Health Service 155,496,177 21,044,891 176,541,068
Metro South Hospital and Health Service 124,370,211 20,350,972 144,721,183
North West Hospital and Health Service 5,950,326 3,174,614 9,124,940
South West Hospital and Health Service 0 6,239,303 6,239,303
Sunshine Coast Hospital and Health Service 40,739,034 6,142,782 46,881,816
Torres Strait - Northern Peninsula Hospital and Health Service 0 6,648,492 6,648,492
Townsville Hospital and Health Service 45,047,519 13,923,656 58,971,175
West Moreton Hospital and Health Service 21,297,500 11,849,887 33,147,387
Wide Bay Hospital and Health Service 30,562,952 7,079,266 37,642,218
Total 640,365,792 170,336,648 810,702,440

A local hospital network (LHN) is an organisation that provides public hospital services in accordance with the National Health Reform Agreement. A local hospital network can contain one or more hospitals, and is usually defined as a business group, geographical area or community. Every Australian public hospital is part of a local hospital network.

NHR payments in this table are GST exclusive to enable comparability of NHR payments in each local hospital network report.

Note: This table excludes GST and payments to other provider organisations (non-local hospital networks).
The majority of government funding to local hospital networks is not subject to GST. However in some cases hospital funding to non-government entities does attract GST, for example, denominational hospitals, privately and commercially owned health facilities, or any other non-government third party provider of health services or related supplies.

For more information, see National Health Reform funding and payments.

Estimated monthly, YTD and annual NWAU by local hospital network

States and territories provide NHR funding amounts and service volumes as service estimates at the start of each financial year, and if required, can continue to refine these estimates during the course of the year. These estimates form the basis of monthly reporting of service volumes until actual service numbers become available. These estimates are expressed as National Weighted Activity Units (NWAU).

States and territories provide estimated annual NWAU to the Administrator as a basis for determining the Commonwealth activity-based funding. Current month NWAU estimates accumulate through the year-to-date (YTD) NWAU, to be equal to the annual NWAU at the end of the financial year.

Table 5 – Estimated monthly, YTD and annual NWAU by local hospital network – Queensland, April 2013

This table shows estimated state or territory hospital activity for activity-based funding services expressed as NWAU for April 2013, the associated cumulative year-to-date (YTD), and total estimated annual NWAU for each local hospital network in Queensland.

Local hospital network (LHN) Estimated NWAU delivered in current month Estimated NWAU delivered YTD Estimated annual NWAU 2012-13
Cairns and Hinterland Hospital and Health Service 6,407 64,070 76,884
Central Queensland Hospital and Health Service 3,477 34,765 41,719
Children's Health Queensland Hospital and Health Service 3,449 34,229 40,610
Darling Downs Hospital and Health Service 3,318 33,183 39,819
Gold Coast Hospital and Health Service 9,625 96,249 115,494
Mackay Hospital and Health Service 2,726 27,260 32,712
Mater Misericordiae Health Service Brisbane 6,454 64,545 77,454
Metro North Hospital and Health Service 25,529 255,271 306,297
Metro South Hospital and Health Service 20,447 204,175 244,483
North West Hospital and Health Service 1,003 10,028 12,033
Sunshine Coast Hospital and Health Service 6,876 68,788 82,602
Townsville Hospital and Health Service 7,455 74,547 89,457
West Moreton Hospital and Health Service 3,512 35,118 42,142
Wide Bay Hospital and Health Service 5,020 50,173 60,150
Total 105,297 1,052,401 1,261,855

An NWAU is a measure of health service activity expressed as a common unit. It provides a way of comparing and valuing each public hospital service, whether they are admissions, emergency department presentations or outpatient episodes, by weighting them for their clinical complexity. The average hospital service is worth one NWAU - the most intensive and expensive activities are worth multiple NWAU, the simplest and least expensive are worth fractions of an NWAU.

Monthly NHR payments relate to the cash needs of public hospitals and do not necessarily reflect the volume of services to be delivered in the month.

For more information on the NWAU calculation, see Calculation of NWAU.