Queensland report, July 2012

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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 shows monthly and year-to-date (YTD) National Health Reform (NHR) funding and payments for Queensland for July 2012 as part of the National Health Reform Agreement.

Participation and provision of data

In signing the National Health Reform Agreement (the Agreement), it was the intention of all states and territories that they would have the necessary legislation in place to enable them to participate in the National Health Funding Pool from 1 July 2012. Under the legislation envisaged by the Agreement, states and territories using the Pool are required to provide data on NHR funding, payments and services to be published by the Administrator of the National Health Funding Pool.

In July 2012, Queensland did not have their legislation in place in time to use the National Health Funding Pool, and instead received equivalent funding directly from the Commonwealth Treasury, and made payments directly to their recipients. Queensland provided data for the July 2012 report to enable monthly reporting on NHR funding, payments and services.

Local hospital networks and National Health Reform

Under the Agreement, local hospital networks 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: Local hospital networks 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 local hospital network, contact the Queensland Department of Health to view the service agreement for that local hospital network.

Basis for National Health Reform payments

For the basis of the Commonwealth contribution to NHR funding, see Basis of Commonwealth funding 2012-13.

The basis used to determine NHR payments to local hospital networks (LHNs) in Queensland for July 2012 was advised by Queensland 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.

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 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 state managed fund by the state or territory.

Transactions on the state pool account

This table shows funding paid into the Queensland state pool account by the Commonwealth and Queensland, and payments out of the state pool account to local hospital networks, the state managed fund, and the state health department for July 2012.

Table 1a – State pool account transactions – Queensland, July 2012

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
Total paid out
($) ($) ($) ($) ($)
Commonwealth
ABF funding
180,799,654 178,323,996 178,323,996
Commonwealth
Block funding
41,905,571 41,905,571 41,905,571
Commonwealth
Other funding
5,275,343 5,275,343 5,275,343
Total Commonwealth
funding
227,980,568 178,323,996 41,905,571 5,275,343 225,504,910
Total state/territory
funding
339,145,284 335,890,726 335,890,726
Grand Total 567,125,852 514,214,722 41,905,571 5,275,343 561,395,636

See definitions and explanatory notes following table 1b.

Following on from table 1a, this table shows the year-to-date (YTD) funding paid into the Queensland state pool account by the Commonwealth and Queensland, and payments out of the state pool account to local hospital networks, the state managed fund, and the state health department as at July 2012.

Table 1b – State pool account transactions YTD – Queensland, July 2012

NHR funding by source Paid into state pool account YTD Paid out of state pool account YTD
To local hospital networks To state managed
fund
To state health department Total paid out
YTD
($) ($) ($) ($) ($)
Commonwealth
ABF funding
180,799,654 178,323,996 178,323,996
Commonwealth
Block funding
41,905,571 41,905,571 41,905,571
Commonwealth
Other funding
5,275,343 5,275,343 5,275,343
Total Commonwealth
funding
227,980,568 178,323,996 41,905,571 5,275,343 225,504,910
Total state/territory
funding
339,145,284 335,890,726 335,890,726
Grand Total 567,125,852 514,214,722 41,905,571 5,275,343 561,395,636

Note: Queensland did not participate in the National Health Funding Pool for July 2012. However, tables 1a and 1b have been constructed as if Queensland had transacted through the pool, in order to achieve comparability with other states and territories.

Commonwealth ABF funding represents Acute admitted public, Acute admitted private, Non-admitted, and Emergency department service categories, which are funded by the Commonwealth through the state pool account and subsequently paid to local hospital networks.

Commonwealth Block funding represents mental health, Small rural and metropolitan hospitals, Sub-acute, Teaching, training and research, and Other 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.

State/territory funding represents funding contributions paid in by Queensland into its own state pool account, and subsequently paid to local hospital networks within the state or territory and/or to state or territory health departments.

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 on NHR funding and payments, see National Health Reform funding and payments.

Transactions on the state managed fund

This table shows funding paid into the Queensland state managed fund by the Commonwealth and Queensland and payments out of the state managed fund for July 2012.

Table 2a – State managed fund transactions – Queensland, July 2012

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 41,905,571 40,556,583
State/territory Block funding 84,280,417 84,280,417
Total 126,185,988 124,837,000 0 124,837,000

See explanatory notes following table 2b.

Following on from table 2a, this table shows the year-to-date (YTD) funding paid into the Queensland state managed fund by the Commonwealth and Queensland and payments out of the state managed fund as at July 2012.

Table 2b – State managed fund transactions YTD – Queensland, July 2012

NHR funding by source Paid into state managed fund YTD Paid out of state managed fund YTD
To local hospital networks To Other Total paid out
YTD
($) ($) ($) ($)
Commonwealth Block funding 41,905,571 40,556,583
State/territory Block funding 84,280,417 84,280,417
Total 126,185,988 124,837,000 0 124,837,000

Block funding represents Mental health, Small rural and metropolitan hospitals, Sub-acute, Teaching, training and research, and Other 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 local hospital networks 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 local hospital networks 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 information on NHR funding and payments, see National Health Reform funding and payments.

NHR funding and payments by service category

This table shows the NHR funding and payments by service category on both a monthly and year-to-date (YTD) basis for Queensland for July 2012.

NHR funding and payments are separated into an activity based funding (ABF) component, block component, and other components.

Table 3 – NHR funding and payments by service category – Queensland, July 2012

Service category NHR funding NHR payments NHR funding
YTD
NHR payments
YTD
($) ($) ($) ($)
ABF
Acute admitted - public 349,507,045 345,469,460 349,507,045 345,469,460
Acute admitted - private 27,411,919 27,264,070 27,411,919 27,264,070
Non-admitted 81,282,115 80,416,280 81,282,115 80,416,280
Emergency department 61,743,859 61,064,913 61,743,859 61,064,913
Total ABF (Pool) 519,944,938 514,214,722 519,944,938 514,214,722
Block
Mental health 18,003,685 17,625,317 18,003,685 17,625,317
Small rural & metro hospitals 54,148,499 50,283,080 54,148,499 50,283,080
Sub-acute 30,778,208 31,145,923 30,778,208 31,145,923
Teaching, training & research 23,255,595 25,782,680 23,255,595 25,782,680
Other 0 0 0 0
Total Block (SMF) 126,185,988 124,837,000 126,185,988 124,837,000
Other
Public health funding 5,275,343 5,275,343 5,275,343 5,275,343
Overdeposit 0 0 0 0
Cross border 0 0 0 0
Interest 0 0 0 0
Total Other (Pool) 5,275,343 5,275,343 5,275,343 5,275,343
Grand Total 651,406,269 644,327,065 651,406,269 644,327,065

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 local hospital networks - 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 local hospital networks are already being funded for the cost of treating cross-border patients - shown in the Cross border payment row under Other in the above table.

Cross border funding arrangements between states and territories are yet to be put in place for state and territory contributions.

NHR funding and payments shown in these tables include GST where applicable.

For more information on NHR funding and payments, see National Health Reform funding and payments.

NHR payment distribution by LHN

This table shows NHR payments (from state, territory and Commonwealth sources) made to each local hospital network (LHN) in Queensland during July 2012.

NHR payments are separated into an activity based funding (ABF) component and a block component.

Table 4 – NHR payment distribution by LHN – Queensland, July 2012

Local hospital network (LHN) ABF component
(ex GST)
Block component
(ex GST)
Total NHR payments
(ex GST)
($) ($) ($)
Cairns and Hinterland Hospital and Health Service 31,352,000 7,001,000 38,353,000
Cape York Hospital and Health Service 0 3,188,000 3,188,000
Central Queensland Hospital and Health Service 19,237,000 8,588,000 27,825,000
Central West Hospital and Health Service 0 2,535,000 2,535,000
Children's Health Queensland Hospital and Health Service 15,363,000 2,466,000 17,829,000
Darling Downs Hospital and Health Service 17,170,000 16,380,000 33,550,000
Gold Coast Hospital and Health Service 47,589,000 7,170,000 54,759,000
Mackay Hospital and Health Service 14,532,000 6,016,000 20,548,000
Mater Misericordiae Health Service Brisbane 24,709,722 0 24,709,722
Metro North Hospital and Health Service 125,422,000 15,510,000 140,932,000
Metro South Hospital and Health Service 103,642,000 15,075,000 118,717,000
North West Hospital and Health Service 5,080,000 2,379,000 7,459,000
South West Hospital and Health Service 0 4,748,000 4,748,000
Sunshine Coast Hospital and Health Service 32,508,000 4,603,000 37,111,000
Torres Strait - Northern Peninsula Hospital and Health Service 0 4,912,000 4,912,000
Townsville Hospital and Health Service 36,691,000 10,296,000 46,987,000
West Moreton Hospital and Health Service 16,781,000 8,760,000 25,541,000
Wide Bay Hospital and Health Service 24,138,000 5,210,000 29,348,000
Total 514,214,722 124,837,000 639,051,722

A local hospital network (LHN) is an organisation that provides public hospital services in accordance with the National Health Reform Agreement. A local hospital network 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 a local hospital network.

NHR payments in this table are GST exclusive to enable comparability of NHR payments to each local hospital network within the jurisdiction and allow for reconciliation against the Table 1a for each local hospital network report.

Note: The majority of government funding to local hospital networks 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 on NHR funding and payments, see National Health Reform funding and payments.

Estimated monthly, YTD and annual NWAU by LHN

This table shows estimated state or territory hospital activity for activity based funding services expressed as National Weighted Activity Units (NWAU) for July 2012, the associated cumulative year-to-date (YTD) and total annual estimated NWAU for each local hospital network in Queensland.

NHR funding amounts and service volumes are provided by states and territories as service estimates at the start of each financial year, and may continue to be refined during the course of the year. These estimates form the basis of monthly reporting of service volumes until actual service numbers become available.

The estimated annual NWAU for each local hospital network (LHN) was provided to the Administrator as a basis for determining the Commonwealth NHR activity based funding. Current month NWAU estimates accumulate through the year-to-date NWAU to equal the annual NWAU at the end of the financial year.

Table 5 – Estimated monthly, YTD and annual NWAU by LHN – Queensland, July 2012

Local hospital network (LHN) Estimated NWAU delivered in current month Estimated NWAU delivered YTD Estimated annual NWAU 2012-13
Cairns and Hinterland Hospital and Health Service 6,407 6,407 76,884
Central Queensland Hospital and Health Service 3,477 3,477 41,719
Children's Health Queensland Hospital and Health Service 3,384 3,384 40,610
Darling Downs Hospital and Health Service 3,318 3,318 39,819
Gold Coast Hospital and Health Service 9,625 9,625 115,494
Mackay Hospital and Health Service 2,726 2,726 32,712
Mater Misericordiae Health Service Brisbane 6,454 6,454 77,454
Metro North Hospital and Health Service 25,525 25,525 306,297
Metro South Hospital and Health Service 20,374 20,374 244,483
North West Hospital and Health Service 1,003 1,003 12,033
Sunshine Coast Hospital and Health Service 6,883 6,883 82,602
Townsville Hospital and Health Service 7,455 7,455 89,457
West Moreton Hospital and Health Service 3,512 3,512 42,142
Wide Bay Hospital and Health Service 5,013 5,013 60,150
Total 105,155 105,155 1,261,855

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 NHR funding and payments, see National Health Reform funding and payments.

For more information on the NWAU calculation, see Calculation of NWAU.