Queensland report, February 2015

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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 2015 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 2015

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 February 2015 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, February 2015

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 2015.

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
214,961,666 214,961,666 214,961,666
Commonwealth
Block funding
32,798,497 32,798,497 32,798,497
Commonwealth
Other funding
5,683,550 5,683,550 5,683,550
Total C'wealth
funding
253,443,713 214,961,666 32,798,497 5,683,550 253,443,713
QLD
funding
381,691,545 381,649,227 0 0 381,649,227
Other state/territory funding 0 0 0 0
Total 635,135,258 596,610,893 32,798,497 5,683,550 0 635,092,940

See definitions and explanatory notes following table 1b.

Table 1b – State pool account transactions YTD – Queensland, February 2015

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 2015.

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
1,714,521,814 1,714,521,814 1,714,521,814
Commonwealth
Block funding
262,742,194 262,742,194 262,742,194
Commonwealth
Other funding
45,647,051 45,647,051 45,647,051
Total C'wealth
funding
2,022,911,059 1,714,521,814 262,742,194 45,647,051 2,022,911,059
QLD
funding
3,369,341,716 3,368,975,301 0 0 3,368,975,301
Other state/territory funding 0 0 0 0
Total 5,392,252,775 5,083,497,115 262,742,194 45,647,051 0 5,391,886,360

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, February 2015

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 2015.

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 32,798,497 32,798,497
State/territory Block funding 71,470,686 71,470,686
Total 104,269,183 104,269,183 0 104,269,183

See explanatory notes following table 2b.

Table 2b – State managed fund transactions YTD – Queensland, February 2015

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 February 2015.

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 262,742,194 262,742,194
State/territory Block funding 608,197,727 608,197,727
Total 870,939,921 870,939,921 0 870,939,921

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 2015

This table shows NHR funding and payments by service category on both a monthly and year-to-date (YTD) basis for Queensland for February 2015. 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 376,057,174 376,057,174 3,222,891,206 3,222,891,206
Admitted mental health 30,249,316 30,249,316 249,909,319 249,909,319
Sub-acute 31,617,630 31,617,630 264,878,402 264,878,402
Emergency department 87,227,925 87,227,925 733,165,860 733,165,860
Non-admitted 71,458,848 71,458,848 612,652,329 612,652,329
Total ABF (Pool) 596,610,893 596,610,893 5,083,497,115 5,083,497,115
Block
Small rural hospitals 56,142,600 56,394,743 470,993,671 473,052,715
Teaching, training & research 21,976,764 21,976,764 171,041,842 171,017,252
Non-admitted mental health 25,630,095 25,451,075 223,781,589 222,332,994
Other non-admitted services 519,724 446,601 5,122,819 4,536,961
Total Block (SMF) 104,269,183 104,269,183 870,939,921 870,939,921
Other
Public health funding 5,683,550 5,683,550 45,647,051 45,647,051
Overdeposit 0 0 0 0
Cross-border 0 0 0 0
Interest 42,318 0 366,415 0
Total Other (Pool) 5,725,868 5,683,550 46,013,466 45,647,051
Grand Total 706,605,944 706,563,626 6,000,450,502 6,000,084,087

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, February 2015

This table shows NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland during February 2015.

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 37,239,601 7,047,629 44,287,231
Central Queensland Hospital and Health Service 20,433,461 6,864,879 27,298,340
Central West Hospital and Health Service 0 2,341,898 2,341,898
Children's Health Queensland Hospital and Health Service 22,943,124 788,183 23,731,307
Darling Downs Hospital and Health Service 23,188,717 14,203,617 37,392,334
Gold Coast Hospital and Health Service 65,419,195 4,657,884 70,077,080
Mackay Hospital and Health Service 17,037,543 3,681,188 20,718,731
Mater Misericordiae Health Service Brisbane 24,807,183 1,536,305 26,343,487
Metro North Hospital and Health Service 129,981,771 10,702,563 140,684,334
Metro South Hospital and Health Service 115,580,018 13,824,780 129,404,799
North West Hospital and Health Service 5,605,355 2,236,629 7,841,984
South West Hospital and Health Service 0 5,219,481 5,219,481
Sunshine Coast Hospital and Health Service 42,603,375 3,652,517 46,255,892
Torres and Cape Hospital and Health Service 0 4,379,401 4,379,401
Townsville Hospital and Health Service 40,721,125 9,354,083 50,075,208
West Moreton Hospital and Health Service 21,310,893 9,363,980 30,674,872
Wide Bay Hospital and Health Service 27,258,814 4,260,535 31,519,348
Total 594,130,175 104,115,553 698,245,727

See explanatory notes below table 4b.

Table 4b – NHR contributions by local hospital network YTD – Queensland, February 2015

This table shows YTD NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland as at February 2015.

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 311,580,234 58,807,527 370,387,761
Central Queensland Hospital and Health Service 169,506,016 57,218,470 226,724,486
Central West Hospital and Health Service 0 19,490,006 19,490,006
Children's Health Queensland Hospital and Health Service 194,840,580 11,126,067 205,966,646
Darling Downs Hospital and Health Service 196,081,393 118,290,705 314,372,098
Gold Coast Hospital and Health Service 538,379,297 39,046,693 577,425,990
Mackay Hospital and Health Service 141,948,273 30,707,961 172,656,234
Mater Misericordiae Health Service Brisbane 301,574,735 9,465,032 311,039,766
Metro North Hospital and Health Service 1,077,458,561 89,636,446 1,167,095,007
Metro South Hospital and Health Service 969,902,339 115,546,049 1,085,448,388
North West Hospital and Health Service 44,560,715 18,630,503 63,191,218
South West Hospital and Health Service 0 43,438,148 43,438,148
Sunshine Coast Hospital and Health Service 358,162,306 30,535,778 388,698,084
Torres and Cape Hospital and Health Service 0 36,446,734 36,446,734
Townsville Hospital and Health Service 341,327,606 78,037,202 419,364,807
West Moreton Hospital and Health Service 177,576,201 78,015,158 255,591,358
Wide Bay Hospital and Health Service 230,441,387 35,554,940 265,996,328
Total 5,053,339,642 869,993,418 5,923,333,060

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 2015

This table shows estimated state or territory hospital activity for activity-based funding services expressed as NWAU for February 2015, 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 7,433 58,981 89,198
Central Queensland Hospital and Health Service 3,903 31,020 46,840
Children's Health Queensland Hospital and Health Service 3,749 30,395 44,994
Darling Downs Hospital and Health Service 4,737 38,472 56,843
Gold Coast Hospital and Health Service 12,225 97,799 146,698
Mackay Hospital and Health Service 3,235 25,967 38,818
Mater Misericordiae Health Service Brisbane 5,910 47,457 70,924
Metro North Hospital and Health Service 24,232 192,305 290,779
Metro South Hospital and Health Service 21,586 173,249 259,034
North West Hospital and Health Service 966 7,724 11,586
Sunshine Coast Hospital and Health Service 8,258 66,764 99,092
Townsville Hospital and Health Service 7,651 59,843 91,808
West Moreton Hospital and Health Service 4,308 34,717 51,693
Wide Bay Hospital and Health Service 5,292 43,133 63,498
Total 113,484 907,824 1,361,805

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.