Queensland report, February 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 February 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, February 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 February 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.

Queensland has revised their estimated NWAU to be delivered in 2013-14. This change takes effect from April 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, February 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 February 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
198,770,717 198,770,717 198,770,717
Commonwealth
Block funding
29,945,358 29,945,358 29,945,358
Commonwealth
Other funding
5,411,779 5,411,779 5,411,779
Total C'wealth
funding
234,127,854 198,770,717 29,945,358 5,411,779 234,127,854
QLD
funding
364,634,910 364,597,596 0 0 364,597,596
Other state/territory funding 0 0
Total 598,762,764 563,368,313 29,945,358 5,411,779 0 598,725,450

See definitions and explanatory notes following table 1b.

Table 1b – State pool account transactions YTD – Queensland, February 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 February 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
1,603,984,764 1,603,984,764 1,603,984,764
Commonwealth
Block funding
247,065,476 247,065,476 247,065,476
Commonwealth
Other funding
43,790,455 43,790,455 43,790,455
Total C'wealth
funding
1,894,840,696 1,603,984,764 247,065,476 43,790,455 1,894,840,696
QLD
funding
3,071,453,880 3,070,963,083 0 0 3,070,963,083
Other state/territory funding 0 0
Total 4,966,294,576 4,674,947,847 247,065,476 43,790,455 0 4,965,803,778

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, February 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 February 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 29,945,358 29,945,358
State/territory Block funding 50,577,628 50,577,628
Total 80,522,986 80,522,986 0 80,522,986

See explanatory notes following table 2b.

Table 2b – State managed fund transactions YTD – Queensland, February 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 February 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 247,065,476 247,065,476
State/territory Block funding 409,850,456 409,850,455
Total 656,915,932 656,915,932 0 656,915,932

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, February 2014

This table shows NHR funding and payments by service category on both a monthly and year-to-date (YTD) basis for Queensland for February 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 336,508,849 336,551,871 2,733,748,451 2,733,748,451
Acute admitted - private 27,934,093 27,935,354 226,957,823 226,957,823
Non-admitted 78,179,485 78,099,706 637,913,657 637,913,657
Emergency department 77,477,987 77,614,530 595,304,679 595,304,679
Admitted mental health 10,924,775 10,831,923 221,719,839 221,719,839
Sub-acute 32,343,123 32,334,929 259,303,399 259,303,399
Total ABF (Pool) 563,368,313 563,368,313 4,674,947,847 4,674,947,847
Block
Non-admitted mental health 25,437,097 25,350,542 201,337,702 201,256,146
Small rural hospitals 49,624,243 49,705,495 408,646,726 408,723,050
Teaching, training & research 4,790,306 4,790,306 41,460,030 41,460,030
Other non-admitted services 671,339 676,643 5,471,475 5,476,705
Total Block (SMF) 80,522,986 80,522,986 656,915,932 656,915,932
Other
Public health funding 5,411,779 5,411,779 43,790,455 43,790,455
Overdeposit 0 0 0 0
Cross-border 0 0 0 0
Interest 37,314 0 490,797 0
Total Other (Pool) 5,449,093 5,411,779 44,281,252 43,790,455
Grand Total 649,340,392 649,303,077 5,376,145,032 5,375,654,233

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, February 2014

This table shows NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland during February 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 34,401,932 5,085,729 39,487,661
Cape York Hospital and Health Service 0 1,653,828 1,653,828
Central Queensland Hospital and Health Service 19,395,882 5,558,271 24,954,153
Central West Hospital and Health Service 0 1,981,109 1,981,109
Children's Health Queensland Hospital and Health Service 16,918,206 1,604,379 18,522,585
Darling Downs Hospital and Health Service 20,811,888 12,645,184 33,457,072
Gold Coast Hospital and Health Service 56,671,432 2,482,734 59,154,166
Mackay Hospital and Health Service 15,573,349 2,981,570 18,554,919
Mater Misericordiae Health Service Brisbane 39,821,533 1,395,971 41,217,504
Metro North Hospital and Health Service 130,860,627 5,289,901 136,150,528
Metro South Hospital and Health Service 97,685,668 9,402,606 107,088,274
North West Hospital and Health Service 5,073,812 1,499,053 6,572,866
South West Hospital and Health Service 0 4,216,041 4,216,041
Sunshine Coast Hospital and Health Service 37,304,315 2,372,586 39,676,901
Torres Strait - Northern Peninsula Hospital and Health Service 0 3,691,819 3,691,819
Townsville Hospital and Health Service 39,316,815 6,593,996 45,910,811
West Moreton Hospital and Health Service 19,989,715 9,154,035 29,143,750
Wide Bay Hospital and Health Service 25,560,983 2,774,578 28,335,561
Total 559,386,160 80,383,389 639,769,548

See explanatory notes below table 4b.

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

This table shows YTD NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland as at February 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 286,585,765 42,228,627 328,814,392
Cape York Hospital and Health Service 0 13,713,808 13,713,808
Central Queensland Hospital and Health Service 160,710,871 47,035,302 207,746,173
Central West Hospital and Health Service 0 16,442,508 16,442,508
Children's Health Queensland Hospital and Health Service 132,356,670 13,440,226 145,796,896
Darling Downs Hospital and Health Service 175,319,344 106,012,470 281,331,814
Gold Coast Hospital and Health Service 470,496,584 22,357,430 492,854,014
Mackay Hospital and Health Service 127,472,698 25,171,191 152,643,889
Mater Misericordiae Health Service Brisbane 317,647,933 9,204,830 326,852,763
Metro North Hospital and Health Service 1,065,521,851 44,433,815 1,109,955,666
Metro South Hospital and Health Service 855,215,581 66,551,380 921,766,960
North West Hospital and Health Service 42,312,372 12,428,229 54,740,601
South West Hospital and Health Service 0 34,862,361 34,862,361
Sunshine Coast Hospital and Health Service 310,016,677 19,883,141 329,899,818
Torres Strait - Northern Peninsula Hospital and Health Service 0 30,575,902 30,575,902
Townsville Hospital and Health Service 328,501,448 54,853,701 383,355,150
West Moreton Hospital and Health Service 160,567,104 73,678,837 234,245,942
Wide Bay Hospital and Health Service 210,458,154 23,121,691 233,579,845
Total 4,643,183,054 655,995,449 5,299,178,502

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, February 2014

This table shows estimated state or territory hospital activity for activity-based funding services expressed as NWAU for February 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 6,943 56,545 85,032
Central Queensland Hospital and Health Service 3,751 29,966 44,940
Children's Health Queensland Hospital and Health Service 2,349 18,750 28,116
Darling Downs Hospital and Health Service 4,289 34,312 51,468
Gold Coast Hospital and Health Service 11,711 93,687 140,531
Mackay Hospital and Health Service 2,926 23,405 35,108
Mater Misericordiae Health Service Brisbane 6,886 55,080 82,618
Metro North Hospital and Health Service 24,301 186,699 278,398
Metro South Hospital and Health Service 16,742 161,189 247,623
North West Hospital and Health Service 1,161 8,501 12,583
Sunshine Coast Hospital and Health Service 7,557 60,250 90,330
Townsville Hospital and Health Service 7,242 59,201 89,073
West Moreton Hospital and Health Service 3,724 32,780 49,810
Wide Bay Hospital and Health Service 5,328 41,112 61,343
Total 104,910 861,478 1,296,974

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.