Queensland report, August 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 August 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, August 2014

For the basis of the Commonwealth contribution to NHR funding, see Basis of Commonwealth NHR funding, 2014-15.

The basis used to determine NHR payments to LHNs in Queensland for August 2014 was advised by the Queensland Department of Health to be as follows:

Service agreements between the Department of Health and each Hospital and Health Service (HHS) are based on the department’s funding and purchasing models. In broad terms, the funding model determines the price at which the department purchases services from HHSs, and the purchasing model determines the volume of services that are purchased.

In terms of the funding model:

34 of the largest public hospitals are funded through the Queensland Activity Based Funding (ABF) model, which sets prices at a disaggregated level for each type of public hospital service. The Queensland ABF model is based largely on the national ABF model, but includes a number of modifications to reflect Queensland priorities.

89 public hospitals, predominantly small regional and rural hospitals, are funded through block funding arrangements which take account of hospital size and location. These are based on the National Efficient Cost Determination with some minor modifications.

Most non-hospital services (e.g. preventive health, primary and community health) are funded based on historical funding levels. However, some services, such as oral health and breast screening, are funded based on a price per unit of output.

The purchasing model determines the volume of services that the Department agrees to purchase from each HHS through the service agreement. The model is informed by Estimated Future Activity for each HHS and other key priorities for investment.

Interest received in the pool account from the Reserve Bank of Australia is returned to the Queensland Government’s Consolidated Fund and is not used for NHR funding.

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, August 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 August 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
212,881,994 212,881,994 212,881,994
Commonwealth
Block funding
32,857,533 32,857,533 32,857,533
Commonwealth
Other funding
5,713,325 5,713,325 5,713,325
Total C'wealth
funding
251,452,852 212,881,994 32,857,533 5,713,325 251,452,852
QLD
funding
360,879,041 360,841,692 0 0 360,841,692
Other state/territory funding 0 0 0 0
Total 612,331,893 573,723,686 32,857,533 5,713,325 0 612,294,545

See definitions and explanatory notes following table 1b.

Table 1b – State pool account transactions YTD – Queensland, August 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 August 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
425,763,988 425,763,988 425,763,988
Commonwealth
Block funding
65,715,067 65,715,067 65,715,067
Commonwealth
Other funding
11,426,650 11,426,650 11,426,650
Total C'wealth
funding
502,905,705 425,763,988 65,715,067 11,426,650 502,905,705
QLD
funding
714,786,080 714,708,277 0 0 714,708,277
Other state/territory funding 0 0 0 0
Total 1,217,691,785 1,140,472,265 65,715,067 11,426,650 0 1,217,613,981

Commonwealth ABF funding represents Acute admitted, Non-admitted, 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 cells that are not applicable for a particular 'paid out' column. For example, Commonwealth block funding is only paid to state managed funds and not to 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, August 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 August 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 32,857,533 32,857,533
State/territory Block funding 45,902,377 45,902,377
Total 78,759,910 78,759,910 0 78,759,910

See explanatory notes following table 2b.

Table 2b – State managed fund transactions YTD – Queensland, August 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 to LHNs and other provider organisations as at August 2014.

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 65,715,067 65,715,067
State/territory Block funding 91,804,752 91,804,752
Total 157,519,819 157,519,819 0 157,519,819

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, August 2014

This table shows NHR funding and payments by service category on both a monthly and year-to-date (YTD) basis for Queensland for August 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
NHR
funding YTD
NHR
payments YTD
($) ($) ($) ($)
ABF
Acute admitted 364,319,891 364,319,891 723,944,024 723,944,024
Admitted mental health 28,185,815 28,185,815 56,043,273 56,043,274
Sub-acute 29,833,989 29,833,989 59,348,890 59,348,890
Emergency department 81,967,474 81,967,474 163,203,715 163,203,715
Non-admitted 69,416,516 69,416,516 137,932,361 137,932,361
Total ABF (Pool) 573,723,686 573,723,686 1,140,472,265 1,140,472,265
Block
Small rural hospitals 50,902,021 51,154,948 101,804,041 102,309,896
Teaching, training & research 4,905,741 4,905,741 9,811,482 9,811,482
Non-admitted mental health 22,288,113 22,108,454 44,576,226 44,216,908
Other non-admitted services 664,035 590,767 1,328,070 1,181,533
Total Block (SMF) 78,759,910 78,759,910 157,519,819 157,519,819
Other
Public health funding 5,713,325 5,713,325 11,426,650 11,426,650
Overdeposit 0 0 0 0
Cross-border 0 0 0 0
Interest 37,348 0 77,803 0
Total Other (Pool) 5,750,673 5,713,325 11,504,454 11,426,650
Grand Total 658,234,269 658,196,921 1,309,496,537 1,309,418,734

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 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, August 2014

This table shows NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland during August 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 36,131,820 5,196,260 41,328,080
Central Queensland Hospital and Health Service 19,642,874 5,633,691 25,276,565
Central West Hospital and Health Service 0 1,978,180 1,978,180
Children's Health Queensland Hospital and Health Service 16,914,830 1,700,963 18,615,793
Darling Downs Hospital and Health Service 21,413,065 12,699,124 34,112,188
Gold Coast Hospital and Health Service 55,558,634 2,661,230 58,219,864
Mackay Hospital and Health Service 15,512,336 3,013,152 18,525,487
Mater Misericordiae Health Service Brisbane 39,503,539 994,957 40,498,496
Metro North Hospital and Health Service 130,784,264 5,271,890 136,056,154
Metro South Hospital and Health Service 106,061,670 8,066,773 114,128,443
North West Hospital and Health Service 4,507,776 1,504,470 6,012,247
South West Hospital and Health Service 0 4,201,643 4,201,643
Sunshine Coast Hospital and Health Service 37,657,857 2,349,960 40,007,817
Torres and Cape Hospital and Health Service 0 5,272,075 5,272,075
Townsville Hospital and Health Service 41,219,999 6,544,927 47,764,926
West Moreton Hospital and Health Service 19,115,049 8,803,089 27,918,138
Wide Bay Hospital and Health Service 25,749,620 2,768,031 28,517,651
Total 569,773,332 78,660,414 648,433,747

See explanatory notes below table 4b.

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

This table shows YTD NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland as at August 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 71,306,738 10,392,520 81,699,258
Central Queensland Hospital and Health Service 39,110,385 11,267,382 50,377,767
Central West Hospital and Health Service 0 3,956,360 3,956,360
Children's Health Queensland Hospital and Health Service 33,334,875 3,401,926 36,736,801
Darling Downs Hospital and Health Service 42,540,671 25,398,247 67,938,918
Gold Coast Hospital and Health Service 112,718,497 5,322,460 118,040,957
Mackay Hospital and Health Service 31,077,638 6,026,303 37,103,941
Mater Misericordiae Health Service Brisbane 77,433,744 1,989,914 79,423,658
Metro North Hospital and Health Service 260,609,045 10,543,781 271,152,826
Metro South Hospital and Health Service 209,770,653 16,133,546 225,904,199
North West Hospital and Health Service 9,576,044 3,008,941 12,584,985
South West Hospital and Health Service 0 8,403,285 8,403,285
Sunshine Coast Hospital and Health Service 75,070,113 4,699,920 79,770,033
Torres and Cape Hospital and Health Service 0 10,544,149 10,544,149
Townsville Hospital and Health Service 80,477,877 13,089,854 93,567,732
West Moreton Hospital and Health Service 38,364,087 17,606,177 55,970,264
Wide Bay Hospital and Health Service 51,338,523 5,536,063 56,874,586
Total 1,132,728,890 157,320,827 1,290,049,718

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, August 2014

This table shows estimated state or territory hospital activity for activity-based funding services expressed as NWAU for August 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 2014-15
Cairns and Hinterland Hospital and Health Service 7,352 14,705 88,604
Central Queensland Hospital and Health Service 3,869 7,738 45,922
Children's Health Queensland Hospital and Health Service 3,816 7,632 45,477
Darling Downs Hospital and Health Service 4,833 9,666 57,997
Gold Coast Hospital and Health Service 12,225 24,450 146,698
Mackay Hospital and Health Service 3,250 6,499 38,995
Mater Misericordiae Health Service Brisbane 5,939 11,879 71,387
Metro North Hospital and Health Service 23,974 47,947 284,073
Metro South Hospital and Health Service 21,679 43,359 254,643
North West Hospital and Health Service 966 1,931 11,586
Sunshine Coast Hospital and Health Service 8,375 16,750 100,421
Townsville Hospital and Health Service 7,424 14,847 89,082
West Moreton Hospital and Health Service 4,350 8,700 52,202
Wide Bay Hospital and Health Service 5,425 10,850 64,898
Total 113,476 226,952 1,351,985

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.