Queensland report, February 2013

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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 February 2013 as part of the National Health Reform Agreement.

Participation in the National Health Funding Pool

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

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

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

The basis used to determine NHR payments to local hospital networks (LHNs) in Queensland for February 2013 was advised by Queensland 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 the 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.

Transactions on the state pool account

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 state health department for February 2013.

Table 1a – State pool account transactions – Queensland, February 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
168,916,595 168,916,595 168,916,595
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 Commonwealth
funding
213,133,825 168,916,595 39,152,823 5,064,408 213,133,825
Total state/territory
funding
308,783,998 308,740,403 0 308,740,403
Grand Total 521,917,823 477,656,998 39,152,823 5,064,408 521,874,228

See definitions and explanatory notes following table 1b.

Following on from table 1a, this table shows the year-to-date (YTD) 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 state health department as at February 2013. These amounts include notional payments for July 2012.

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

NHR funding by source Paid into state pool account YTD Paid out of state pool account YTD
To local hospital networks To state managed
fund
To state health department Total paid out
YTD
($) ($) ($) ($) ($)
Commonwealth
ABF funding
1,410,748,054 1,410,748,054 1,410,748,054
Commonwealth
Block funding
326,986,325 326,986,325 326,986,325
Commonwealth
Other funding
41,569,938 41,569,938 41,569,938
Total Commonwealth
funding
1,779,304,317 1,410,748,054 326,986,325 41,569,938 1,779,304,317
Total state/territory
funding
2,641,689,491 2,641,266,625 30 2,641,266,655
Grand Total 4,420,993,808 4,052,014,679 326,986,325 41,569,968 4,420,570,972

Note: Of the total year-to-date amount of $4,420,993,808 shown in Table 1b as paid into the Queensland state pool account, $567,126,486 was notional year-to-date payments.

Note: Of the total year-to-date amount of $4,420,570,972 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 in by Queensland into its own state pool account, and subsequently paid to local hospital networks within the state or territory 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 on NHR funding and payments, see National Health Reform funding and payments.

Transactions on the state managed fund

This table shows funding paid into the Queensland state managed fund by the Commonwealth and Queensland and payments out of the state managed fund for February 2013.

Table 2a – State managed fund transactions – Queensland, February 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 39,152,823
State/territory Block funding 87,126,067 87,126,067
Total 126,278,890 126,278,890 0 126,278,890

See explanatory notes following table 2b.

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

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

NHR funding by source Paid into state managed fund YTD Paid out of state managed fund YTD
To local hospital networks To Other Total paid out
YTD
($) ($) ($) ($)
Commonwealth Block funding 326,986,325 326,986,325
State/territory Block funding 725,612,606 725,551,586
Total 1,052,598,931 1,052,537,911 0 1,052,537,911

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 information on NHR funding and payments, see National Health Reform funding and payments.

NHR funding and payments by service category

This table shows the NHR funding and payments by service category on both a monthly and year-to-date (YTD) basis for Queensland for February 2013.

NHR funding and payments are separated into an activity based funding (ABF) component, block component, and other components.

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

Service category NHR funding NHR payments NHR funding
YTD
NHR payments
YTD
($) ($) ($) ($)
ABF
Acute admitted - public 321,542,993 321,542,993 2,726,986,463 2,727,069,814
Acute admitted - private 25,134,988 25,134,988 212,879,843 212,815,882
Non-admitted 74,519,846 74,519,846 632,719,781 632,872,144
Emergency department 56,459,171 56,459,171 479,428,622 479,256,839
Total ABF (Pool) 477,656,998 477,656,998 4,052,014,709 4,052,014,679
Block
Mental health 17,994,811 17,637,373 149,535,520 147,237,232
Small rural & metro hospitals 54,583,409 51,185,697 453,981,318 427,007,535
Sub-acute 30,252,994 30,478,134 250,317,435 253,888,591
Teaching, training & research 23,447,676 26,977,686 198,764,659 224,404,553
Other 0 0 0 0
Total Block (SMF) 126,278,890 126,278,890 1,052,598,931 1,052,537,911
Other
Public health funding 5,064,408 5,064,408 41,569,938 41,569,938
Overdeposit 0 0 0 0
Cross border 0 0 0 0
Interest 43,595 0 422,836 30
Total Other (Pool) 5,108,003 5,064,408 41,992,774 41,569,968
Grand Total 609,043,891 609,000,296 5,146,606,414 5,146,122,557

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 payment 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 on NHR funding and payments, see National Health Reform funding and payments.

NHR payment distribution by LHN

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

NHR payments are separated into an activity based funding (ABF) component and a block component.

Table 4 – NHR payment distribution by LHN – Queensland, February 2013

Local hospital network (LHN) ABF component
(ex GST)
Block component
(ex GST)
Total NHR payments
(ex GST)
($) ($) ($)
Cairns and Hinterland Hospital and Health Service 28,872,013 7,005,612 35,877,625
Cape York Hospital and Health Service 0 3,175,955 3,175,955
Central Queensland Hospital and Health Service 15,481,904 8,590,274 24,072,178
Central West Hospital and Health Service 0 2,462,175 2,462,175
Children's Health Queensland Hospital and Health Service 15,552,988 2,466,918 18,019,906
Darling Downs Hospital and Health Service 14,845,018 16,383,992 31,229,010
Gold Coast Hospital and Health Service 42,758,139 7,192,077 49,950,216
Mackay Hospital and Health Service 12,187,665 6,018,203 18,205,868
Mater Misericordiae Health Service Brisbane 30,948,398 1,439,699 32,388,097
Metro North Hospital and Health Service 114,692,646 15,549,516 130,242,162
Metro South Hospital and Health Service 91,073,486 15,078,099 106,151,585
North West Hospital and Health Service 4,520,267 2,380,200 6,900,467
South West Hospital and Health Service 0 4,599,203 4,599,203
Sunshine Coast Hospital and Health Service 31,204,879 4,605,613 35,810,492
Torres Strait - Northern Peninsula Hospital and Health Service 0 4,913,027 4,913,027
Townsville Hospital and Health Service 33,678,908 10,299,328 43,978,236
West Moreton Hospital and Health Service 15,969,489 8,763,259 24,732,748
Wide Bay Hospital and Health Service 22,776,358 5,211,770 27,988,128
Total 474,562,158 126,134,920 600,697,078

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).

Note: 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 on NHR funding and payments, see National Health Reform funding and payments.

Estimated monthly, YTD and annual NWAU by LHN

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

NHR funding amounts and service volumes are provided by states and territories as service estimates at the start of each financial year, and may continue to be refined during the course of the year. These estimates form the basis of monthly reporting of service volumes until actual service numbers become available.

The estimated annual NWAU for each local hospital network (LHN) was provided to the Administrator as a basis for determining the Commonwealth NHR activity based funding. Current month NWAU estimates accumulate through the year-to-date NWAU to equal the annual NWAU at the end of the financial year.

Table 5 – Estimated monthly, YTD and annual NWAU by LHN – Queensland, February 2013

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 51,256 76,884
Central Queensland Hospital and Health Service 3,477 27,812 41,719
Children's Health Queensland Hospital and Health Service 3,449 27,331 40,610
Darling Downs Hospital and Health Service 3,318 26,546 39,819
Gold Coast Hospital and Health Service 9,625 76,999 115,494
Mackay Hospital and Health Service 2,726 21,808 32,712
Mater Misericordiae Health Service Brisbane 6,454 51,636 77,454
Metro North Hospital and Health Service 25,529 204,214 306,297
Metro South Hospital and Health Service 20,447 163,281 244,483
North West Hospital and Health Service 1,003 8,022 12,033
Sunshine Coast Hospital and Health Service 6,876 55,036 82,602
Townsville Hospital and Health Service 7,455 59,638 89,457
West Moreton Hospital and Health Service 3,512 28,095 42,142
Wide Bay Hospital and Health Service 5,020 40,132 60,150
Total 105,297 841,806 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 NHR funding and payments, see National Health Reform funding and payments.

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