Queensland report, December 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 December 2013 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, December 2013

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 December 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.

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.

Queensland has revised their estimated NWAU to be delivered in 2013-14. This change takes effect from January 2014.

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, December 2013

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 December 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
To state pool (other State) Total paid out
($) ($) ($) ($) ($) ($)
Commonwealth
ABF funding
200,651,428 200,651,428 200,651,428
Commonwealth
Block funding
31,131,216 31,131,216 31,131,216
Commonwealth
Other funding
5,482,668 5,482,668 5,482,668
Total C'wealth
funding
237,265,312 200,651,428 31,131,216 5,482,668 237,265,312
QLD
funding
408,473,681 408,432,199 0 0 408,432,199
Other state/territory funding 0 0
Total 645,738,994 609,083,627 31,131,216 5,482,668 0 645,697,512

See definitions and explanatory notes following table 1b.

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

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 December 2013.

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
1,203,848,948 1,203,848,948 1,203,848,948
Commonwealth
Block funding
186,778,047 186,778,047 186,778,047
Commonwealth
Other funding
32,896,008 32,896,008 32,896,008
Total C'wealth
funding
1,423,523,003 1,203,848,948 186,778,047 32,896,008 1,423,523,003
QLD
funding
2,360,771,386 2,359,505,296 0 0 2,359,505,296
Other state/territory funding 0 0
Total 3,784,294,390 3,563,354,244 186,778,047 32,896,008 0 3,783,028,299

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, December 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 LHNs and other provider organisations for December 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 31,131,216 31,131,216
State/territory Block funding 47,319,156 47,319,156
Total 78,450,373 78,450,373 0 78,450,373

See explanatory notes following table 2b.

Table 2b – State managed fund transactions YTD – Queensland, December 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 December 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 186,778,047 186,778,047
State/territory Block funding 309,015,333 308,694,291
Total 495,793,380 495,472,338 0 495,472,338

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, December 2013

This table shows NHR funding and payments by service category on both a monthly and year-to-date (YTD) basis for Queensland for December 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 YTD NHR
funding
YTD NHR
payments
($) ($) ($) ($)
ABF
Acute admitted - public 355,244,832 355,244,832 2,076,774,605 2,076,132,864
Acute admitted - private 28,956,952 28,956,952 171,318,691 171,540,318
Non-admitted 76,246,585 76,246,585 478,560,106 478,519,748
Emergency department 82,767,933 82,767,933 456,191,369 455,734,337
Admitted mental health 31,922,227 31,922,227 183,456,515 183,576,275
Sub-acute 33,945,099 33,945,099 197,931,731 197,850,701
Total ABF (Pool) 609,083,627 609,083,627 3,564,233,017 3,563,354,244
Block
Non-admitted mental health 24,034,142 24,023,081 151,652,498 150,661,735
Small rural hospitals 49,047,993 49,059,430 308,848,055 308,817,380
Teaching, training & research 4,720,014 4,720,014 31,165,586 31,865,147
Other non-admitted services 648,223 647,848 4,127,242 4,128,076
Total Block (SMF) 78,450,373 78,450,373 495,793,380 495,472,338
Other
Public health funding 5,482,668 5,482,668 32,896,008 32,896,008
Overdeposit 0 0 0 0
Cross-border 0 0 0 0
Interest 41,482 0 387,317 0
Total Other (Pool) 5,524,150 5,482,668 33,283,325 32,896,008
Grand Total 693,058,150 693,016,668 4,093,309,723 4,091,722,590

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, December 2013

This table shows NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland during December 2013.

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 37,925,319 5,030,788 42,956,107
Cape York Hospital and Health Service 0 1,637,593 1,637,593
Central Queensland Hospital and Health Service 19,327,808 5,660,789 24,988,597
Central West Hospital and Health Service 0 1,973,892 1,973,892
Children's Health Queensland Hospital and Health Service 11,993,283 1,617,551 13,610,834
Darling Downs Hospital and Health Service 22,856,921 12,873,002 35,729,923
Gold Coast Hospital and Health Service 60,279,116 2,692,458 62,971,574
Mackay Hospital and Health Service 14,750,219 3,029,098 17,779,317
Mater Misericordiae Health Service Brisbane 38,307,176 1,026,526 39,333,702
Metro North Hospital and Health Service 150,931,330 5,249,057 156,180,387
Metro South Hospital and Health Service 117,539,347 7,679,067 125,218,414
North West Hospital and Health Service 5,306,572 1,491,680 6,798,252
South West Hospital and Health Service 0 4,187,182 4,187,182
Sunshine Coast Hospital and Health Service 38,137,775 2,388,474 40,526,249
Torres Strait - Northern Peninsula Hospital and Health Service 0 3,669,419 3,669,419
Townsville Hospital and Health Service 39,762,918 6,586,537 46,349,455
West Moreton Hospital and Health Service 21,392,568 8,808,700 30,201,268
Wide Bay Hospital and Health Service 26,742,558 2,745,907 29,488,465
Total 605,252,910 78,347,720 683,600,630

See explanatory notes below table 4b.

Table 4b – NHR contributions by local hospital network YTD – Queensland, December 2013

This table shows YTD NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland as at December 2013.

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 222,791,493 31,943,370 254,734,863
Cape York Hospital and Health Service 0 10,372,549 10,372,549
Central Queensland Hospital and Health Service 122,113,600 35,698,924 157,812,524
Central West Hospital and Health Service 0 12,439,792 12,439,792
Children's Health Queensland Hospital and Health Service 90,051,997 10,157,035 100,209,032
Darling Downs Hospital and Health Service 137,506,362 80,324,037 217,830,399
Gold Coast Hospital and Health Service 366,784,386 17,092,153 383,876,539
Mackay Hospital and Health Service 95,338,123 19,085,978 114,424,101
Mater Misericordiae Health Service Brisbane 226,961,308 6,401,116 233,362,424
Metro North Hospital and Health Service 812,923,040 33,657,653 846,580,693
Metro South Hospital and Health Service 657,088,906 49,142,256 706,231,162
North West Hospital and Health Service 32,669,304 9,404,507 42,073,811
South West Hospital and Health Service 0 26,314,547 26,314,547
Sunshine Coast Hospital and Health Service 238,544,159 15,127,331 253,671,490
Torres Strait - Northern Peninsula Hospital and Health Service 0 23,129,545 23,129,545
Townsville Hospital and Health Service 249,707,818 41,532,606 291,240,424
West Moreton Hospital and Health Service 127,231,257 55,510,845 182,742,102
Wide Bay Hospital and Health Service 160,946,360 17,497,982 178,444,342
Total 3,540,658,113 494,832,226 4,035,490,339

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, December 2013

This table shows estimated state or territory hospital activity for activity-based funding services expressed as NWAU for December 2013, 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 7,086 42,516 84,298
Central Queensland Hospital and Health Service 3,745 22,470 44,940
Children's Health Queensland Hospital and Health Service 2,343 14,058 27,879
Darling Downs Hospital and Health Service 4,289 25,734 51,142
Gold Coast Hospital and Health Service 11,711 70,266 138,366
Mackay Hospital and Health Service 2,926 17,554 35,012
Mater Misericordiae Health Service Brisbane 6,885 41,309 78,775
Metro North Hospital and Health Service 23,200 139,199 274,553
Metro South Hospital and Health Service 20,635 123,812 240,604
North West Hospital and Health Service 1,049 6,292 12,720
Sunshine Coast Hospital and Health Service 7,527 45,165 90,330
Townsville Hospital and Health Service 7,423 44,536 89,073
West Moreton Hospital and Health Service 4,151 24,905 49,810
Wide Bay Hospital and Health Service 5,112 30,672 60,760
Total 108,081 648,487 1,278,262

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.