Queensland report, February 2016

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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 2016 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 2016

For the basis of the Commonwealth contribution to NHR funding, see Basis of Commonwealth NHR funding, 2015-16.

The basis used to determine NHR payments to LHNs in Queensland for February 2016 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:

35 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.

83 public hospitals, predominantly small regional and rural hospitals, and 4 specialist mental health facilities 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.

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 2016

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 2016.

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
248,029,544 248,029,544 248,029,544
Commonwealth
Block funding
32,198,861 32,198,861 32,198,861
Commonwealth
Other funding
5,898,408 5,898,408 5,898,408
Total C'wealth
funding
286,126,812 248,029,544 32,198,861 5,898,408 286,126,812
QLD
funding
637,480,088 434,002,080 0 0 434,002,080
Other state/territory funding 0 0 0 0
Total 923,606,900 682,031,624 32,198,861 5,898,408 0 720,128,892

See definitions and explanatory notes following table 1b.

Table 1b – State pool account transactions YTD – Queensland, February 2016

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 2016.

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
1,957,893,466 1,957,893,466 1,957,893,466
Commonwealth
Block funding
257,590,884 257,590,884 257,590,884
Commonwealth
Other funding
47,709,109 47,709,109 47,709,109
Total C'wealth
funding
2,263,193,459 1,957,893,466 257,590,884 47,709,109 2,263,193,459
QLD
funding
3,760,547,367 3,538,985,319 0 17,800,000 3,556,785,319
Other state/territory funding 25,600,000 0 25,600,000 25,600,000
Total 6,049,340,826 5,496,878,785 257,590,884 73,309,109 17,800,000 5,845,578,778

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 2016

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 2016.

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 32,198,861 32,198,861
State/territory Block funding 98,030,953 65,354,331
Total 130,229,814 97,553,192 0 97,553,192

See explanatory notes following table 2b.

Table 2b – State managed fund transactions YTD – Queensland, February 2016

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 2016.

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 257,590,884 257,590,884
State/territory Block funding 621,061,872 588,385,250
Total 878,652,757 845,976,134 0 845,976,134

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 2016

This table shows NHR funding and payments by service category on both a monthly and year-to-date (YTD) basis for Queensland for February 2016. 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 562,009,311 433,347,189 3,604,297,854 3,475,635,731
Admitted mental health 42,492,409 32,578,099 289,868,604 279,954,293
Sub-acute 45,991,036 35,294,641 297,742,301 287,045,906
Emergency department 124,099,845 95,385,278 805,350,315 776,635,749
Non-admitted 110,881,814 85,426,418 703,062,501 677,607,105
Total ABF (Pool) 885,474,415 682,031,624 5,700,321,576 5,496,878,785
Block
Small rural hospitals 65,484,234 49,959,901 444,715,875 428,932,150
Teaching, training & research 30,124,445 21,058,143 198,951,768 189,885,466
Non-admitted mental health 34,621,135 26,535,148 234,985,114 227,158,518
Other non-admitted services 0 0 0 0
Total Block (SMF) 130,229,814 97,553,192 878,652,757 845,976,134
Other
Public health funding 5,898,408 5,898,408 47,709,109 47,709,109
Overdeposit 0 0 0 0
Cross-border 0 0 43,400,000 43,400,000
Interest 35,217 0 319,257 0
Total Other (Pool) 5,933,625 5,898,408 91,428,366 91,109,109
Grand Total 1,021,637,853 785,483,223 6,670,402,698 6,433,964,028

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 2016

This table shows NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland during February 2016.

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 40,190,473 6,188,172 46,378,645
Central Queensland Hospital and Health Service 22,728,612 5,162,108 27,890,720
Central West Hospital and Health Service 0 2,352,764 2,352,764
Children's Health Queensland Hospital and Health Service 42,438,126 1,519,765 43,957,891
Darling Downs Hospital and Health Service 26,569,288 12,533,578 39,102,866
Gold Coast Hospital and Health Service 70,599,912 5,311,532 75,911,444
Mackay Hospital and Health Service 18,230,079 4,031,975 22,262,053
Mater Misericordiae Health Service Brisbane 41,660,808 10,861 41,671,669
Metro North Hospital and Health Service 137,314,069 11,275,503 148,589,572
Metro South Hospital and Health Service 120,615,819 12,575,554 133,191,372
North West Hospital and Health Service 5,074,469 2,396,863 7,471,332
South West Hospital and Health Service 0 5,225,778 5,225,778
Sunshine Coast Hospital and Health Service 44,213,775 3,632,850 47,846,625
Torres and Cape Hospital and Health Service 0 5,087,524 5,087,524
Townsville Hospital and Health Service 54,000,933 9,278,432 63,279,365
West Moreton Hospital and Health Service 22,698,661 8,950,910 31,649,571
Wide Bay Hospital and Health Service 31,530,521 2,017,936 33,548,457
Total 677,865,543 97,552,105 775,417,649

See explanatory notes below table 4b.

Table 4b – NHR contributions by local hospital network YTD – Queensland, February 2016

This table shows YTD NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland as at February 2016.

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 338,165,924 52,798,300 390,964,224
Central Queensland Hospital and Health Service 188,906,684 46,044,116 234,950,801
Central West Hospital and Health Service 0 19,186,135 19,186,135
Children's Health Queensland Hospital and Health Service 262,797,211 12,643,593 275,440,804
Darling Downs Hospital and Health Service 222,670,704 106,336,244 329,006,947
Gold Coast Hospital and Health Service 622,554,166 43,268,177 665,822,343
Mackay Hospital and Health Service 155,645,608 32,376,029 188,021,637
Mater Misericordiae Health Service Brisbane 274,982,132 7,799,962 282,782,094
Metro North Hospital and Health Service 1,152,847,132 92,738,495 1,245,585,627
Metro South Hospital and Health Service 1,004,621,139 106,967,782 1,111,588,922
North West Hospital and Health Service 41,975,813 19,285,428 61,261,241
South West Hospital and Health Service 0 42,652,506 42,652,506
Sunshine Coast Hospital and Health Service 380,588,448 30,259,531 410,847,979
Torres and Cape Hospital and Health Service 0 40,038,998 40,038,998
Townsville Hospital and Health Service 370,345,329 76,465,835 446,811,164
West Moreton Hospital and Health Service 193,136,423 74,374,737 267,511,159
Wide Bay Hospital and Health Service 260,143,858 41,960,270 302,104,128
Total 5,469,380,572 845,196,139 6,314,576,711

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 2016

This table shows estimated state or territory hospital activity for activity-based funding services expressed as NWAU for February 2016, 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 2015-16
Cairns and Hinterland Hospital and Health Service 7,884 61,024 94,607
Central Queensland Hospital and Health Service 4,452 34,888 53,431
Children's Health Queensland Hospital and Health Service 5,149 39,451 61,792
Darling Downs Hospital and Health Service 5,417 42,221 64,999
Gold Coast Hospital and Health Service 13,829 109,167 165,950
Mackay Hospital and Health Service 3,295 25,720 39,539
Mater Misericordiae Health Service Brisbane 5,336 42,637 64,038
Metro North Hospital and Health Service 24,923 198,849 299,073
Metro South Hospital and Health Service 22,340 177,112 268,072
North West Hospital and Health Service 943 7,568 11,320
Sunshine Coast Hospital and Health Service 8,689 68,905 104,277
Townsville Hospital and Health Service 8,160 64,307 97,916
West Moreton Hospital and Health Service 4,645 36,927 55,740
Wide Bay Hospital and Health Service 5,601 43,349 67,207
Total 120,663 952,125 1,447,961

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.