Queensland report, January 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 January 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, January 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 January 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, January 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 January 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
418,661,300 418,620,793 0 0 418,620,793
Other state/territory funding 0 0 0 0
Total 672,105,013 633,582,458 32,798,497 5,683,550 0 672,064,505

See definitions and explanatory notes following table 1b.

Table 1b – State pool account transactions YTD – Queensland, January 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 January 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
1,499,560,149 1,499,560,149 1,499,560,149
Commonwealth
Block funding
229,943,697 229,943,697 229,943,697
Commonwealth
Other funding
39,963,501 39,963,501 39,963,501
Total C'wealth
funding
1,769,467,346 1,499,560,149 229,943,697 39,963,501 1,769,467,346
QLD
funding
2,987,650,171 2,987,326,074 0 0 2,987,326,074
Other state/territory funding 0 0 0 0
Total 4,757,117,517 4,486,886,222 229,943,697 39,963,501 0 4,756,793,420

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, January 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 January 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 71,645,828 71,645,828
Total 104,444,326 104,444,326 0 104,444,326

See explanatory notes following table 2b.

Table 2b – State managed fund transactions YTD – Queensland, January 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 January 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 229,943,697 229,943,697
State/territory Block funding 536,727,041 536,727,041
Total 766,670,738 766,670,738 0 766,670,738

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 2015

This table shows NHR funding and payments by service category on both a monthly and year-to-date (YTD) basis for Queensland for January 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 399,073,684 399,073,684 2,846,834,032 2,846,834,032
Admitted mental health 32,096,787 32,096,787 219,660,003 219,660,003
Sub-acute 33,784,455 33,784,455 233,260,771 233,260,771
Emergency department 92,858,678 92,858,678 645,937,935 645,937,935
Non-admitted 75,768,853 75,768,853 541,193,481 541,193,481
Total ABF (Pool) 633,582,458 633,582,458 4,486,886,222 4,486,886,222
Block
Small rural hospitals 56,254,363 56,506,506 414,851,071 416,657,972
Teaching, training & research 21,987,099 21,987,099 149,065,078 149,040,488
Non-admitted mental health 25,682,339 25,503,319 198,151,494 196,881,918
Other non-admitted services 520,525 447,401 4,603,095 4,090,360
Total Block (SMF) 104,444,326 104,444,326 766,670,738 766,670,738
Other
Public health funding 5,683,550 5,683,550 39,963,501 39,963,501
Overdeposit 0 0 0 0
Cross-border 0 0 0 0
Interest 40,508 0 324,097 0
Total Other (Pool) 5,724,058 5,683,550 40,287,598 39,963,501
Grand Total 743,750,842 743,710,334 5,293,844,558 5,293,520,461

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, January 2015

This table shows NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland during January 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 38,181,369 7,059,755 45,241,123
Central Queensland Hospital and Health Service 20,535,725 6,877,482 27,413,207
Central West Hospital and Health Service 0 2,346,557 2,346,557
Children's Health Queensland Hospital and Health Service 24,169,924 788,477 24,958,402
Darling Downs Hospital and Health Service 25,356,225 14,230,842 39,587,066
Gold Coast Hospital and Health Service 76,060,582 4,663,709 80,724,291
Mackay Hospital and Health Service 17,946,211 3,687,627 21,633,838
Mater Misericordiae Health Service Brisbane 24,553,011 1,536,305 26,089,316
Metro North Hospital and Health Service 135,141,985 10,716,943 145,858,928
Metro South Hospital and Health Service 126,089,527 13,846,279 139,935,806
North West Hospital and Health Service 5,872,100 2,240,869 8,112,969
South West Hospital and Health Service 0 5,229,864 5,229,864
Sunshine Coast Hospital and Health Service 45,331,999 3,658,109 48,990,108
Torres and Cape Hospital and Health Service 0 4,388,108 4,388,108
Townsville Hospital and Health Service 38,257,975 9,370,377 47,628,352
West Moreton Hospital and Health Service 22,676,683 9,381,569 32,058,252
Wide Bay Hospital and Health Service 30,953,840 4,267,826 35,221,666
Total 631,127,157 104,290,695 735,417,852

See explanatory notes below table 4b.

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

This table shows YTD NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland as at January 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 274,340,633 51,759,897 326,100,530
Central Queensland Hospital and Health Service 149,072,555 50,353,591 199,426,146
Central West Hospital and Health Service 0 17,148,109 17,148,109
Children's Health Queensland Hospital and Health Service 171,897,456 10,337,884 182,235,339
Darling Downs Hospital and Health Service 172,892,676 104,087,088 276,979,764
Gold Coast Hospital and Health Service 472,960,102 34,388,808 507,348,910
Mackay Hospital and Health Service 124,910,730 27,026,773 151,937,503
Mater Misericordiae Health Service Brisbane 276,767,552 7,928,727 284,696,279
Metro North Hospital and Health Service 947,476,790 78,933,883 1,026,410,673
Metro South Hospital and Health Service 854,322,320 101,721,269 956,043,589
North West Hospital and Health Service 38,955,360 16,393,874 55,349,234
South West Hospital and Health Service 0 38,218,667 38,218,667
Sunshine Coast Hospital and Health Service 315,558,931 26,883,261 342,442,192
Torres and Cape Hospital and Health Service 0 32,067,333 32,067,333
Townsville Hospital and Health Service 300,606,480 68,683,119 369,289,599
West Moreton Hospital and Health Service 156,265,308 68,651,178 224,916,486
Wide Bay Hospital and Health Service 203,182,574 31,294,406 234,476,979
Total 4,459,209,467 765,877,865 5,225,087,332

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 2015

This table shows estimated state or territory hospital activity for activity-based funding services expressed as NWAU for January 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 51,548 89,198
Central Queensland Hospital and Health Service 3,903 27,117 46,840
Children's Health Queensland Hospital and Health Service 3,749 26,645 44,994
Darling Downs Hospital and Health Service 4,737 33,735 56,843
Gold Coast Hospital and Health Service 12,225 85,574 146,698
Mackay Hospital and Health Service 3,235 22,732 38,818
Mater Misericordiae Health Service Brisbane 5,910 41,547 70,924
Metro North Hospital and Health Service 24,232 168,073 290,779
Metro South Hospital and Health Service 21,586 151,663 259,034
North West Hospital and Health Service 966 6,759 11,586
Sunshine Coast Hospital and Health Service 8,258 58,506 99,092
Townsville Hospital and Health Service 7,651 52,192 91,808
West Moreton Hospital and Health Service 4,308 30,409 51,693
Wide Bay Hospital and Health Service 5,292 37,841 63,498
Total 113,484 794,341 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.