Queensland report, December 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 December 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, December 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 December 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, December 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 December 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
215,317,500 215,317,500 215,317,500
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
253,888,359 215,317,500 32,857,533 5,713,325 253,888,359
QLD
funding
392,015,841 391,945,587 0 0 391,945,587
Other state/territory funding 0 0 0 0
Total 645,904,200 607,263,088 32,857,533 5,713,325 0 645,833,946

See definitions and explanatory notes following table 1b.

Table 1b – State pool account transactions YTD – Queensland, December 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 December 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
1,284,598,483 1,284,598,483 1,284,598,483
Commonwealth
Block funding
197,145,199 197,145,199 197,145,199
Commonwealth
Other funding
34,279,951 34,279,951 34,279,951
Total C'wealth
funding
1,516,023,633 1,284,598,483 197,145,199 34,279,951 1,516,023,633
QLD
funding
2,568,988,870 2,568,705,281 0 0 2,568,705,281
Other state/territory funding 0 0 0 0
Total 4,085,012,504 3,853,303,764 197,145,199 34,279,951 0 4,084,728,914

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, December 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 December 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 70,848,044 70,848,044
Total 103,705,577 103,705,577 0 103,705,577

See explanatory notes following table 2b.

Table 2b – State managed fund transactions YTD – Queensland, December 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 December 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 197,145,199 197,145,199
State/territory Block funding 465,081,213 465,081,213
Total 662,226,412 662,226,412 0 662,226,412

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 2014

This table shows NHR funding and payments by service category on both a monthly and year-to-date (YTD) basis for Queensland for December 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 385,639,851 385,639,851 2,447,760,348 2,447,760,348
Admitted mental health 29,546,565 29,546,565 187,563,216 187,563,216
Sub-acute 31,449,176 31,449,176 199,476,316 199,476,316
Emergency department 87,301,226 87,301,226 553,079,257 553,079,257
Non-admitted 73,326,269 73,326,269 465,424,628 465,424,628
Total ABF (Pool) 607,263,088 607,263,088 3,853,303,764 3,853,303,764
Block
Small rural hospitals 56,162,236 56,415,163 358,596,708 360,151,465
Teaching, training & research 19,742,425 19,742,425 127,077,979 127,053,389
Non-admitted mental health 27,280,823 27,101,164 172,469,155 171,378,599
Other non-admitted services 520,093 446,825 4,082,570 3,642,958
Total Block (SMF) 103,705,577 103,705,577 662,226,412 662,226,412
Other
Public health funding 5,713,325 5,713,325 34,279,951 34,279,951
Overdeposit 0 0 0 0
Cross-border 0 0 0 0
Interest 70,253 0 283,590 0
Total Other (Pool) 5,783,579 5,713,325 34,563,540 34,279,951
Grand Total 716,752,243 716,681,990 4,550,093,717 4,549,810,127

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, December 2014

This table shows NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland during December 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 36,800,497 7,049,806 43,850,303
Central Queensland Hospital and Health Service 20,287,794 6,867,141 27,154,935
Central West Hospital and Health Service 0 2,342,734 2,342,734
Children's Health Queensland Hospital and Health Service 23,024,071 788,677 23,812,748
Darling Downs Hospital and Health Service 23,236,891 14,208,504 37,445,395
Gold Coast Hospital and Health Service 63,822,023 4,658,930 68,480,953
Mackay Hospital and Health Service 16,965,009 3,682,344 20,647,353
Mater Misericordiae Health Service Brisbane 39,501,772 994,957 40,496,729
Metro North Hospital and Health Service 128,298,341 10,705,144 139,003,486
Metro South Hospital and Health Service 114,377,531 13,828,639 128,206,170
North West Hospital and Health Service 5,565,390 2,237,390 7,802,780
South West Hospital and Health Service 0 5,221,345 5,221,345
Sunshine Coast Hospital and Health Service 42,666,173 3,653,520 46,319,693
Torres and Cape Hospital and Health Service 0 4,380,964 4,380,964
Townsville Hospital and Health Service 40,279,022 9,357,007 49,636,029
West Moreton Hospital and Health Service 21,272,288 9,367,137 30,639,425
Wide Bay Hospital and Health Service 27,216,107 4,261,843 31,477,951
Total 603,312,910 103,606,081 706,918,992

See explanatory notes below table 4b.

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

This table shows YTD NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland as at December 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 236,159,264 44,700,143 280,859,407
Central Queensland Hospital and Health Service 128,536,830 43,476,109 172,012,939
Central West Hospital and Health Service 0 14,801,551 14,801,551
Children's Health Queensland Hospital and Health Service 147,727,531 9,549,407 157,276,938
Darling Downs Hospital and Health Service 147,536,451 89,856,247 237,392,697
Gold Coast Hospital and Health Service 396,899,520 29,725,099 426,624,619
Mackay Hospital and Health Service 106,964,519 23,339,147 130,303,665
Mater Misericordiae Health Service Brisbane 252,214,541 6,392,423 258,606,964
Metro North Hospital and Health Service 812,334,805 68,216,940 880,551,745
Metro South Hospital and Health Service 728,232,793 87,874,990 816,107,783
North West Hospital and Health Service 33,083,260 14,153,005 47,236,265
South West Hospital and Health Service 0 32,988,802 32,988,802
Sunshine Coast Hospital and Health Service 270,226,931 23,225,153 293,452,084
Torres and Cape Hospital and Health Service 0 27,679,225 27,679,225
Townsville Hospital and Health Service 262,348,505 59,312,742 321,661,247
West Moreton Hospital and Health Service 133,588,625 59,269,609 192,858,234
Wide Bay Hospital and Health Service 172,228,734 27,026,580 199,255,314
Total 3,828,082,310 661,587,170 4,489,669,480

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 2014

This table shows estimated state or territory hospital activity for activity-based funding services expressed as NWAU for December 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 44,114 88,229
Central Queensland Hospital and Health Service 3,869 23,214 46,428
Children's Health Queensland Hospital and Health Service 3,816 22,896 45,791
Darling Downs Hospital and Health Service 4,833 28,998 57,997
Gold Coast Hospital and Health Service 12,225 73,349 146,698
Mackay Hospital and Health Service 3,250 19,497 38,995
Mater Misericordiae Health Service Brisbane 5,939 35,636 71,273
Metro North Hospital and Health Service 23,974 143,841 287,682
Metro South Hospital and Health Service 21,679 130,077 260,153
North West Hospital and Health Service 966 5,793 11,586
Sunshine Coast Hospital and Health Service 8,375 50,249 100,497
Townsville Hospital and Health Service 7,424 44,541 89,082
West Moreton Hospital and Health Service 4,350 26,101 52,202
Wide Bay Hospital and Health Service 5,425 32,550 65,099
Total 113,476 680,857 1,361,714

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.