Queensland report, April 2014

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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 2014 as part of the National Health Reform Agreement.

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. An LHN 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 an LHN.

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, LHNs 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: LHNs 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 LHN, contact the Queensland Department of Health to view the service agreement for that LHN.

Basis for National Health Reform payments – Queensland, April 2014

For the basis of the Commonwealth contribution to NHR funding, see Basis of Commonwealth NHR funding, 2013-14.

The basis used to determine NHR payments to LHNs in Queensland for April 2014 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.

Interest received in the pool account from Reserve Bank of Australia is returned to Treasury's consolidated account and is not used for NHR funding.

In February 2014, the Commonwealth provided Queensland with additional public hospital funding of $10,079,580.55 under the 2013-14 Mid-Year Economic and Fiscal Outlook (MYEFO) funding measure: Public Hospital System - additional funding. This funding was provided to offset the downward adjustment to 2013-14 NHR funding applied at the MYEFO due to the application of updated NHR funding indexation parameters. A requirement of the provision of this funding was that the funding be provided to LHNs through the National Health Funding Pool and / or State Managed Fund.

The Administrator has been advised by Queensland that the Queensland contributions to LHNs through the Pool between March and June 2014 will include this additional funding from the Commonwealth.

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 that has been 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.

State pool account transactions

Table 1a – State pool account transactions – Queensland, April 2014

This table shows funding paid into the Queensland state pool account by the Commonwealth, Queensland or other states/territories, and payments out of the state pool account to LHNs, the state managed fund, the Queensland Department of Health or the state pool accounts of other states/territories for April 2014.

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
To state pool (other State) Total paid out
($) ($) ($) ($) ($) ($)
Commonwealth
ABF funding
202,211,309 202,211,309 202,211,309
Commonwealth
Block funding
30,659,854 30,659,854 30,659,854
Commonwealth
Other funding
5,451,853 5,451,853 5,451,853
Total C'wealth
funding
238,323,016 202,211,309 30,659,854 5,451,853 238,323,016
QLD
funding
360,755,626 537,394,487 0 0 537,394,487
Other state/territory funding 0 0 0 0
Total 599,078,642 739,605,796 30,659,854 5,451,853 0 775,717,503

See definitions and explanatory notes following table 1b.

Table 1b – State pool account transactions YTD – Queensland, April 2014

Following on from table 1a, this table shows year-to-date (YTD) funding paid into the Queensland state pool account by the Commonwealth, Queensland or other states/territories, and payments out of the state pool account to LHNs, the state managed fund, the Queensland Department of Health or the state pool accounts of other states/territories as at April 2014.

NHR funding by source Paid Into state
pool account
Paid Out of state pool account
To Local hospital
networks
YTD
To State
Managed Fund
YTD
To state health
department
YTD
To state pool (other State)
YTD
Total paid out
YTD
($) ($) ($) ($) ($) ($)
Commonwealth
ABF funding
2,008,759,712 2,008,759,712 2,008,759,712
Commonwealth
Block funding
307,989,059 307,989,059 307,989,059
Commonwealth
Other funding
54,694,161 54,694,161 54,694,161
Total C'wealth
funding
2,371,442,932 2,008,759,712 307,989,059 54,694,161 2,371,442,932
QLD
funding
3,976,089,527 3,975,456,355 0 0 3,975,456,355
Other state/territory funding 0 0 0 0
Total 6,347,532,459 5,984,216,067 307,989,059 54,694,161 0 6,346,899,287

Commonwealth ABF funding represents Acute admitted public, Acute admitted private, Non-admitted, and Emergency department, Sub-acute, and Admitted mental health service categories, which are funded by the Commonwealth through the state pool account and subsequently paid to LHNs.

Commonwealth Block funding represents Non-admitted mental health, Small rural hospitals, Teaching, training & research, and Other non-admitted 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.

QLD funding represents funding contributions paid by Queensland into its own state pool account, and subsequently paid to LHNs within the state, to the Queensland health department and/or to other state pool accounts.

Other state/territory funding represents contributions paid to Queensland by other states and territories for cross-border activity.

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 2014

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 LHNs and other provider organisations for April 2014.

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 30,659,854 30,659,854
State/territory Block funding 46,770,479 70,639,757
Total 77,430,333 101,299,611 0 101,299,611

See explanatory notes following table 2b.

Table 2b – State managed fund transactions YTD – Queensland, April 2014

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 2014. 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 307,989,059 307,989,059
State/territory Block funding 526,652,004 526,652,003
Total 834,641,063 834,641,062 0 834,641,062

Note: See note to table 1b in relation to Commonwealth block funding.

Block funding represents Non-admitted mental health, Small rural hospitals, Teaching, training & research, and Other non-admitted 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 LHNs 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 LHNs 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 2014

This table shows NHR funding and payments by service category on both a monthly and year-to-date (YTD) basis for Queensland for April 2014. 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 YTD NHR
funding
YTD NHR
payments
($) ($) ($) ($)
ABF
Acute admitted - public 329,395,889 432,165,644 3,498,790,160 3,498,790,160
Acute admitted - private 27,095,203 35,993,576 291,172,761 291,172,761
Non-admitted 76,989,984 101,129,540 816,558,908 816,558,908
Emergency department 71,718,281 94,127,595 761,516,949 761,516,949
Admitted mental health 26,475,340 35,055,427 284,208,503 284,208,503
Sub-acute 31,214,117 41,134,014 331,968,786 331,968,786
Total ABF (Pool) 562,888,814 739,605,796 5,984,216,066 5,984,216,067
Block
Non-admitted mental health 23,759,800 31,132,159 255,584,823 255,552,495
Small rural hospitals 48,365,066 63,272,998 519,993,359 520,021,994
Teaching, training & research 4,660,830 6,050,873 52,113,789 52,113,789
Other non-admitted services 644,637 843,581 6,949,092 6,952,784
Total Block (SMF) 77,430,333 101,299,611 834,641,063 834,641,062
Other
Public health funding 5,451,853 5,451,853 54,694,161 54,694,161
Overdeposit 0 0 0 0
Cross-border 0 0 0 0
Interest 78,121 0 633,173 0
Total Other (Pool) 5,529,975 5,451,853 55,327,334 54,694,161
Grand Total 645,849,122 846,357,260 6,874,184,463 6,873,551,290

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 LHNs - 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 LHNs are already being funded for the cost of treating cross-border patients - shown in the Cross-border row under Other in the above table.

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

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

NHR contributions by local hospital network

Table 4a – NHR contributions by local hospital network – Queensland, April 2014

This table shows NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland during April 2014.

NHR contributions to 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 payment
(ex GST)
($) ($) ($)
Cairns and Hinterland Hospital and Health Service 47,032,722 6,516,698 53,549,420
Cape York Hospital and Health Service 0 2,121,221 2,121,221
Central Queensland Hospital and Health Service 25,394,912 7,264,567 32,659,479
Central West Hospital and Health Service 0 2,547,639 2,547,639
Children's Health Queensland Hospital and Health Service 21,468,835 2,084,443 23,553,279
Darling Downs Hospital and Health Service 27,881,648 16,405,406 44,287,054
Gold Coast Hospital and Health Service 75,094,157 3,420,708 78,514,865
Mackay Hospital and Health Service 20,537,603 3,890,696 24,428,299
Mater Misericordiae Health Service Brisbane 47,608,718 1,090,587 48,699,305
Metro North Hospital and Health Service 165,942,246 6,718,960 172,661,206
Metro South Hospital and Health Service 139,330,469 10,584,102 149,914,571
North West Hospital and Health Service 6,305,869 1,922,872 8,228,741
South West Hospital and Health Service 0 5,409,849 5,409,849
Sunshine Coast Hospital and Health Service 47,734,218 3,020,677 50,754,895
Torres Strait - Northern Peninsula Hospital and Health Service 0 4,739,160 4,739,160
Townsville Hospital and Health Service 52,148,811 8,436,297 60,585,108
West Moreton Hospital and Health Service 25,688,061 11,471,154 37,159,215
Wide Bay Hospital and Health Service 32,676,654 3,545,517 36,222,171
Total 734,844,924 101,190,553 836,035,477

See explanatory notes below table 4b.

Table 4b – NHR contributions by local hospital network YTD – Queensland, April 2014

This table shows YTD NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland as at April 2014.

NHR contributions to LHNs are separated into an activity-based funding (ABF) component and a block component.

Local hospital network ABF component YTD
(ex GST)
Block component YTD
(ex GST)
Total NHR payment YTD
(ex GST)
($) ($) ($)
Cairns and Hinterland Hospital and Health Service 364,902,745 53,648,345 418,551,089
Cape York Hospital and Health Service 0 17,444,364 17,444,364
Central Queensland Hospital and Health Service 204,752,961 59,845,803 264,598,763
Central West Hospital and Health Service 0 20,936,387 20,936,387
Children's Health Queensland Hospital and Health Service 173,088,674 17,117,364 190,206,038
Darling Downs Hospital and Health Service 221,566,415 134,947,270 356,513,686
Gold Coast Hospital and Health Service 596,865,715 28,384,350 625,250,065
Mackay Hospital and Health Service 162,929,886 32,032,608 194,962,494
Mater Misericordiae Health Service Brisbane 402,860,039 11,147,310 414,007,349
Metro North Hospital and Health Service 1,375,813,603 55,821,786 1,431,635,390
Metro South Hospital and Health Service 1,100,670,602 85,264,992 1,185,935,593
North West Hospital and Health Service 53,724,341 15,811,003 69,535,344
South West Hospital and Health Service 0 44,391,642 44,391,642
Sunshine Coast Hospital and Health Service 395,330,887 25,049,820 420,380,707
Torres Strait - Northern Peninsula Hospital and Health Service 0 38,936,727 38,936,727
Townsville Hospital and Health Service 418,203,811 69,552,834 487,756,644
West Moreton Hospital and Health Service 203,201,994 93,922,128 297,124,122
Wide Bay Hospital and Health Service 270,018,389 29,271,599 299,289,988
Total 5,943,930,063 833,526,331 6,777,456,394

NHR contributions in this table are GST exclusive to enable comparability of NHR payments in each LHN report.

Note: This table excludes GST.
The majority of government funding to LHNs 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 activity

States and territories provide service volume 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.

States and territories may also provide activity information relating to the delivery of other public hospital functions funded.

Table 5 – Estimated monthly, YTD and annual NWAU by local hospital network – Queensland, April 2014

This table shows estimated state or territory hospital activity for activity-based funding services expressed as NWAU for April 2014, the associated cumulative year-to-date (YTD), and total estimated annual NWAU for each LHN in Queensland.

Local hospital network (LHN) Estimated NWAU delivered in current month Estimated NWAU delivered YTD Estimated annual NWAU 2013-14
Cairns and Hinterland Hospital and Health Service 7,068 70,681 84,817
Central Queensland Hospital and Health Service 3,746 37,457 44,949
Children's Health Queensland Hospital and Health Service 2,344 23,438 28,125
Darling Downs Hospital and Health Service 4,289 42,890 51,468
Gold Coast Hospital and Health Service 11,711 117,109 140,531
Mackay Hospital and Health Service 2,926 29,257 35,108
Mater Misericordiae Health Service Brisbane 6,885 68,850 82,620
Metro North Hospital and Health Service 23,337 233,374 280,049
Metro South Hospital and Health Service 20,149 201,486 241,783
North West Hospital and Health Service 1,063 10,627 12,752
Sunshine Coast Hospital and Health Service 7,531 75,312 90,374
Townsville Hospital and Health Service 7,400 74,002 88,802
West Moreton Hospital and Health Service 4,097 40,975 49,170
Wide Bay Hospital and Health Service 5,139 51,390 61,668
Total 107,685 1,076,847 1,292,217

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.