Queensland report, January 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 January 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, January 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 January 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, January 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 January 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
201,365,099 201,365,099 201,365,099
Commonwealth
Block funding
30,342,071 30,342,071 30,342,071
Commonwealth
Other funding
5,482,668 5,482,668 5,482,668
Total C'wealth
funding
237,189,838 201,365,099 30,342,071 5,482,668 237,189,838
QLD
funding
346,047,584 346,860,191 0 0 346,860,191
Other state/territory funding 0 0
Total 583,237,422 548,225,290 30,342,071 5,482,668 0 584,050,029

See definitions and explanatory notes following table 1b.

Table 1b – State pool account transactions YTD – Queensland, January 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 January 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
1,405,214,047 1,405,214,047 1,405,214,047
Commonwealth
Block funding
217,120,118 217,120,118 217,120,118
Commonwealth
Other funding
38,378,676 38,378,676 38,378,676
Total C'wealth
funding
1,660,712,842 1,405,214,047 217,120,118 38,378,676 1,660,712,842
QLD
funding
2,706,818,970 2,706,365,487 0 0 2,706,365,487
Other state/territory funding 0 0
Total 4,367,531,811 4,111,579,534 217,120,118 38,378,676 0 4,367,078,329

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, January 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 January 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 30,342,071 30,342,071
State/territory Block funding 50,257,495 50,578,537
Total 80,599,566 80,920,608 0 80,920,608

See explanatory notes following table 2b.

Table 2b – State managed fund transactions YTD – Queensland, January 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 January 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 217,120,118 217,120,118
State/territory Block funding 359,272,828 359,272,827
Total 576,392,947 576,392,946 0 576,392,946

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, January 2014

This table shows NHR funding and payments by service category on both a monthly and year-to-date (YTD) basis for Queensland for January 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 320,464,997 321,063,716 2,397,239,602 2,397,196,581
Acute admitted - private 27,705,039 27,482,150 199,023,730 199,022,468
Non-admitted 81,174,066 81,294,203 559,734,172 559,813,951
Emergency department 61,635,323 61,955,812 517,826,691 517,690,149
Admitted mental health 27,338,548 27,311,641 210,795,064 210,887,916
Sub-acute 29,028,544 29,117,768 226,960,275 226,968,469
Total ABF (Pool) 547,346,517 548,225,290 4,111,579,534 4,111,579,534
Block
Non-admitted mental health 24,248,106 25,243,870 175,900,604 175,905,605
Small rural hospitals 50,174,428 50,200,175 359,022,483 359,017,555
Teaching, training & research 5,504,138 4,804,577 36,669,724 36,669,724
Other non-admitted services 672,894 671,986 4,800,136 4,800,062
Total Block (SMF) 80,599,566 80,920,608 576,392,947 576,392,946
Other
Public health funding 5,482,668 5,482,668 38,378,676 38,378,676
Overdeposit 0 0 0 0
Cross-border 0 0 0 0
Interest 66,166 0 453,483 0
Total Other (Pool) 5,548,834 5,482,668 38,832,159 38,378,676
Grand Total 633,494,917 634,628,566 4,726,804,640 4,726,351,156

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, January 2014

This table shows NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland during January 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 29,392,340 5,199,528 34,591,868
Cape York Hospital and Health Service 0 1,687,432 1,687,432
Central Queensland Hospital and Health Service 19,201,389 5,778,107 24,979,495
Central West Hospital and Health Service 0 2,021,607 2,021,607
Children's Health Queensland Hospital and Health Service 25,386,467 1,678,812 27,065,278
Darling Downs Hospital and Health Service 17,001,094 13,043,250 30,044,344
Gold Coast Hospital and Health Service 47,040,766 2,782,543 49,823,309
Mackay Hospital and Health Service 16,561,226 3,103,643 19,664,869
Mater Misericordiae Health Service Brisbane 50,865,092 1,407,743 52,272,835
Metro North Hospital and Health Service 121,738,184 5,486,261 127,224,445
Metro South Hospital and Health Service 100,441,006 8,006,518 108,447,524
North West Hospital and Health Service 4,569,256 1,524,669 6,093,925
South West Hospital and Health Service 0 4,331,773 4,331,773
Sunshine Coast Hospital and Health Service 34,168,203 2,383,224 36,551,427
Torres Strait - Northern Peninsula Hospital and Health Service 0 3,754,539 3,754,539
Townsville Hospital and Health Service 39,476,816 6,727,099 46,203,915
West Moreton Hospital and Health Service 13,346,131 9,013,957 22,360,089
Wide Bay Hospital and Health Service 23,950,811 2,849,131 26,799,941
Total 543,138,781 80,779,834 623,918,615

See explanatory notes below table 4b.

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

This table shows YTD NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland as at January 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 252,183,833 37,142,898 289,326,731
Cape York Hospital and Health Service 0 12,059,981 12,059,981
Central Queensland Hospital and Health Service 141,314,989 41,477,031 182,792,019
Central West Hospital and Health Service 0 14,461,399 14,461,399
Children's Health Queensland Hospital and Health Service 115,438,464 11,835,847 127,274,311
Darling Downs Hospital and Health Service 154,507,456 93,367,287 247,874,743
Gold Coast Hospital and Health Service 413,825,152 19,874,696 433,699,848
Mackay Hospital and Health Service 111,899,349 22,189,621 134,088,970
Mater Misericordiae Health Service Brisbane 277,826,400 7,808,859 285,635,259
Metro North Hospital and Health Service 934,661,224 39,143,914 973,805,138
Metro South Hospital and Health Service 757,529,913 57,148,774 814,678,686
North West Hospital and Health Service 37,238,560 10,929,176 48,167,735
South West Hospital and Health Service 0 30,646,320 30,646,320
Sunshine Coast Hospital and Health Service 272,712,361 17,510,555 290,222,917
Torres Strait - Northern Peninsula Hospital and Health Service 0 26,884,084 26,884,084
Townsville Hospital and Health Service 289,184,633 48,259,705 337,444,339
West Moreton Hospital and Health Service 140,577,389 64,524,802 205,102,191
Wide Bay Hospital and Health Service 184,897,171 20,347,113 205,244,284
Total 4,083,796,894 575,612,060 4,659,408,954

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, January 2014

This table shows estimated state or territory hospital activity for activity-based funding services expressed as NWAU for January 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 7,086 49,602 85,032
Central Queensland Hospital and Health Service 3,745 26,215 44,940
Children's Health Queensland Hospital and Health Service 2,343 16,401 28,116
Darling Downs Hospital and Health Service 4,289 30,023 51,468
Gold Coast Hospital and Health Service 11,711 81,977 140,531
Mackay Hospital and Health Service 2,926 20,480 35,108
Mater Misericordiae Health Service Brisbane 6,885 48,194 82,618
Metro North Hospital and Health Service 23,200 162,399 278,398
Metro South Hospital and Health Service 20,635 144,447 247,623
North West Hospital and Health Service 1,049 7,340 12,583
Sunshine Coast Hospital and Health Service 7,527 52,692 90,330
Townsville Hospital and Health Service 7,423 51,959 89,073
West Moreton Hospital and Health Service 4,151 29,056 49,810
Wide Bay Hospital and Health Service 5,112 35,784 61,343
Total 108,081 756,568 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.