Queensland report, January 2016

Print friendly version (PDF, 538 kB)

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 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, January 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 January 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, January 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 January 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
419,844,318 419,809,021 0 0 419,809,021
Other state/territory funding 0 0 0 0
Total 705,971,131 667,838,565 32,198,861 5,898,408 0 705,935,833

See definitions and explanatory notes following table 1b.

Table 1b – State pool account transactions YTD – Queensland, January 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 January 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
1,709,863,922 1,709,863,922 1,709,863,922
Commonwealth
Block funding
225,392,024 225,392,024 225,392,024
Commonwealth
Other funding
41,810,701 41,810,701 41,810,701
Total C'wealth
funding
1,977,066,647 1,709,863,922 225,392,024 41,810,701 1,977,066,647
QLD
funding
3,123,067,279 3,104,983,239 0 17,800,000 3,122,783,239
Other state/territory funding 25,600,000 0 25,600,000 25,600,000
Total 5,125,733,926 4,814,847,161 225,392,024 67,410,701 17,800,000 5,125,449,886

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 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 January 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 65,061,306 65,061,306
Total 97,260,166 97,260,166 0 97,260,166

See explanatory notes following table 2b.

Table 2b – State managed fund transactions YTD – Queensland, January 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 January 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 225,392,024 225,392,024
State/territory Block funding 523,030,919 523,030,919
Total 748,422,943 748,422,943 0 748,422,943

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 2016

This table shows NHR funding and payments by service category on both a monthly and year-to-date (YTD) basis for Queensland for January 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 422,253,177 422,253,177 3,042,288,543 3,042,288,543
Admitted mental health 32,786,875 32,786,875 247,376,195 247,376,195
Sub-acute 35,501,975 35,501,975 251,751,265 251,751,265
Emergency department 94,027,605 94,027,605 681,250,471 681,250,471
Non-admitted 83,268,933 83,268,933 592,180,687 592,180,687
Total ABF (Pool) 667,838,565 667,838,565 4,814,847,161 4,814,847,161
Block
Small rural hospitals 49,860,535 49,768,074 379,231,641 378,972,250
Teaching, training & research 21,058,143 21,058,143 168,827,323 168,827,323
Non-admitted mental health 26,341,488 26,433,950 200,363,979 200,623,370
Other non-admitted services 0 0 0 0
Total Block (SMF) 97,260,166 97,260,166 748,422,943 748,422,943
Other
Public health funding 5,898,408 5,898,408 41,810,701 41,810,701
Overdeposit 0 0 0 0
Cross-border 0 0 43,400,000 43,400,000
Interest 35,297 0 284,040 0
Total Other (Pool) 5,933,705 5,898,408 85,494,741 85,210,701
Grand Total 771,032,436 770,997,139 5,648,764,845 5,648,480,805

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 2016

This table shows NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland during January 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 35,024,292 6,188,172 41,212,464
Central Queensland Hospital and Health Service 20,827,731 5,162,108 25,989,839
Central West Hospital and Health Service 0 2,352,764 2,352,764
Children's Health Queensland Hospital and Health Service 31,104,252 1,519,765 32,624,017
Darling Downs Hospital and Health Service 23,720,450 12,533,578 36,254,028
Gold Coast Hospital and Health Service 73,802,255 5,311,532 79,113,787
Mackay Hospital and Health Service 16,587,266 4,031,975 20,619,241
Mater Misericordiae Health Service Brisbane 30,663,301 10,861 30,674,162
Metro North Hospital and Health Service 150,060,194 11,275,503 161,335,697
Metro South Hospital and Health Service 133,919,018 12,575,554 146,494,572
North West Hospital and Health Service 5,053,599 2,396,863 7,450,462
South West Hospital and Health Service 0 5,225,778 5,225,778
Sunshine Coast Hospital and Health Service 48,136,358 3,632,850 51,769,208
Torres and Cape Hospital and Health Service 0 5,087,524 5,087,524
Townsville Hospital and Health Service 39,935,228 9,278,432 49,213,660
West Moreton Hospital and Health Service 22,023,840 8,950,910 30,974,750
Wide Bay Hospital and Health Service 33,914,452 1,724,911 35,639,362
Total 664,772,235 97,259,080 762,031,315

See explanatory notes below table 4b.

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

This table shows YTD NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland as at January 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 297,975,451 46,610,128 344,585,579
Central Queensland Hospital and Health Service 166,178,072 40,882,009 207,060,081
Central West Hospital and Health Service 0 16,833,372 16,833,372
Children's Health Queensland Hospital and Health Service 220,359,085 11,123,828 231,482,913
Darling Downs Hospital and Health Service 196,101,416 93,802,666 289,904,081
Gold Coast Hospital and Health Service 551,954,254 37,956,645 589,910,899
Mackay Hospital and Health Service 137,415,530 28,344,054 165,759,584
Mater Misericordiae Health Service Brisbane 233,321,325 7,789,101 241,110,426
Metro North Hospital and Health Service 1,015,533,063 81,462,992 1,096,996,055
Metro South Hospital and Health Service 884,005,321 94,392,229 978,397,550
North West Hospital and Health Service 36,901,345 16,888,564 53,789,909
South West Hospital and Health Service 0 37,426,728 37,426,728
Sunshine Coast Hospital and Health Service 336,374,673 26,626,681 363,001,354
Torres and Cape Hospital and Health Service 0 34,951,474 34,951,474
Townsville Hospital and Health Service 316,344,396 67,187,404 383,531,799
West Moreton Hospital and Health Service 170,437,761 65,423,827 235,861,588
Wide Bay Hospital and Health Service 228,613,338 39,942,334 268,555,671
Total 4,791,515,029 747,644,033 5,539,159,062

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 2016

This table shows estimated state or territory hospital activity for activity-based funding services expressed as NWAU for January 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 53,140 94,607
Central Queensland Hospital and Health Service 4,453 30,436 53,431
Children's Health Queensland Hospital and Health Service 5,149 34,302 61,792
Darling Downs Hospital and Health Service 5,417 36,804 64,999
Gold Coast Hospital and Health Service 13,829 95,338 165,950
Mackay Hospital and Health Service 3,295 22,425 39,539
Mater Misericordiae Health Service Brisbane 5,337 37,301 64,038
Metro North Hospital and Health Service 24,923 173,926 299,073
Metro South Hospital and Health Service 22,339 154,772 268,072
North West Hospital and Health Service 943 6,625 11,320
Sunshine Coast Hospital and Health Service 8,690 60,216 104,277
Townsville Hospital and Health Service 8,160 56,147 97,916
West Moreton Hospital and Health Service 4,645 32,282 55,740
Wide Bay Hospital and Health Service 5,601 37,748 67,207
Total 120,663 831,461 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.