Queensland report, June 2013

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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 June 2013 as part of the National Health Reform Agreement.

Participation in the National Health Funding Pool – Queensland, June 2013

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.

However, not all states and territories had their legislation in place by that date. As part of the transition to National Health Reform funding, arrangements were put in place whereby those states and territories received equivalent funding directly from the Commonwealth Treasury, and made payments directly from departmental bank accounts to local hospital networks (LHNs). Although these transactions were not made through state pool accounts and state managed funds, they have been included in this report (and designated as ‘notional payments’ into and out of state pool accounts and state managed funds) to enable national comparability for month and year-to-date reporting periods.

Queensland has participated in the National Health Funding Pool since 1 August 2012.

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. 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.

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, 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 – Queensland, June 2013

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

The basis used to determine NHR payments to local hospital networks (LHNs) in Queensland for June 2013 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.

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 the state managed fund by the state or territory.
  • Notional NHR payments – funds paid into and out of departmental bank accounts to local hospital networks that would have been transacted through the state pool account and/or state managed fund had NHR funding arrangements been in place. Notional payments are included in 2012-13 reporting to enable national comparability for month and year-to-date reporting periods.

State pool account transactions

Table 1a – State pool account transactions – Queensland, June 2013

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 Queensland Department of Health for June 2013.

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
169,455,633 185,887,120 185,887,120
Commonwealth
Block funding
39,161,061 39,161,061 39,161,061
Commonwealth
Other funding
5,065,445 5,065,445 5,065,445
Total C'wealth
funding
213,682,138 185,887,120 39,161,061 5,065,445 230,113,625
Total state/territory
funding
304,505,043 288,778,031 645,479 289,423,510
Grand Total 518,187,181 474,665,151 39,161,061 5,710,924 519,537,136

See definitions and explanatory notes following table 1b.

Table 1b – State pool account transactions YTD – Queensland, June 2013

Following on from table 1a, this table shows year-to-date (YTD) funding paid into the Queensland state pool account by the Commonwealth and Queensland, and YTD payments out of the state pool account to local hospital networks, the state managed fund, and the Queensland Department of Health as at June 2013. These amounts include notional payments for July 2012.

NHR funding by source Paid into state
pool account
YTD
Paid out of state pool account YTD
To local hospital
networks
YTD
To state
managed fund
YTD
To state health
department
YTD
Total paid out
YTD
($) ($) ($) ($) ($)
Commonwealth
ABF funding
2,086,953,472 2,086,953,472 2,086,953,472
Commonwealth
Block funding
483,605,854 483,302,458 483,302,458
Commonwealth
Other funding
61,828,605 61,828,605 61,828,605
Total C'wealth
funding
2,632,387,931 2,086,953,472 483,302,458 61,828,605 2,632,084,535
Total state/territory
funding
4,047,524,067 4,047,181,954 645,509 4,047,827,463
Grand Total 6,679,911,999 6,134,135,426 483,302,458 62,474,114 6,679,911,999

Note:Of the total year-to-date amount of $6,679,911,999 shown in Table 1b as paid into and out of the Queensland state pool account, $567,126,486 was notional year-to-date payments.
No payments were made from the Queensland state pool account in July 2012, with payments made directly from departmental bank accounts to local hospital networks.

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 by Queensland into its own state pool account, and subsequently paid to local hospital networks within the state 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, see National Health Reform funding and payments.

State managed fund transactions

Table 2a – State managed fund transactions – Queensland, June 2013

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 local hospital networks and other provider organisations for June 2013.

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 39,161,061 39,870,698
State/territory Block funding 80,160,404 79,413,907
Total 119,321,465 119,284,606 0 119,284,606

See explanatory notes following table 2b.

Table 2b – State managed fund transactions YTD – Queensland, June 2013

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 June 2013. 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 483,302,458 483,302,458
State/territory Block funding 1,110,595,473 1,110,497,594
Total 1,593,897,931 1,593,800,052 0 1,593,800,052

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, see National Health Reform funding and payments.

NHR funding and payments by service category

Table 3 – NHR funding and payments by service category – Queensland, June 2013

This table shows NHR funding and payments by service category on both a monthly and year-to-date (YTD) basis for Queensland for June 2013. 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 - public 319,207,871 320,528,561 4,129,011,191 4,129,750,406
Acute admitted - private 24,875,914 24,668,420 321,956,598 322,008,203
Non-admitted 73,905,463 73,685,854 957,689,811 957,371,612
Emergency department 55,932,273 55,782,317 725,174,460 725,005,207
Total ABF (Pool) 473,921,521 474,665,153 6,133,832,060 6,134,135,428
Block
Mental health 17,394,198 18,953,354 226,837,977 225,043,655
Small rural and metro hospitals 52,135,024 46,851,558 687,511,835 644,907,001
Sub-acute 27,481,929 28,198,501 378,406,615 383,784,567
Teaching, training and research 22,310,313 25,281,193 301,444,900 340,064,829
Other 0 0 0 0
Total Block (SMF) 119,321,465 119,284,606 1,594,201,327 1,593,800,052
Other
Public health funding 5,065,445 5,065,445 61,828,605 61,828,605
Overdeposit 0 0 0 0
Cross-border 0 0 0 0
Interest 39,155 645,479 645,479 645,479
Total Other (Pool) 5,104,600 5,710,924 62,474,085 62,474,114
Grand Total 598,347,585 599,660,683 7,790,507,472 7,790,409,594

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 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, see National Health Reform funding and payments.

NHR payment distribution by local hospital network

Table 4 – NHR payment distribution by local hospital network – Queensland, June 2013

This table shows NHR payments (from state, territory and Commonwealth sources) made to each local hospital network (LHN) in Queensland during June 2013.

NHR payments distributed to local hospital networks (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 payments
(ex GST)
($) ($) ($)
Cairns and Hinterland Hospital and Health Service 28,719,440 6,922,607 35,642,047
Cape York Hospital and Health Service 0 3,145,471 3,145,471
Central Queensland Hospital and Health Service 13,485,332 5,637,175 19,122,507
Central West Hospital and Health Service 0 2,445,804 2,445,804
Children's Health Queensland Hospital and Health Service 15,525,402 2,433,785 17,959,187
Darling Downs Hospital and Health Service 14,848,207 16,199,490 31,047,697
Gold Coast Hospital and Health Service 42,260,441 7,900,771 50,161,212
Mackay Hospital and Health Service 12,269,200 5,950,712 18,219,911
Mater Misericordiae Health Service Brisbane 39,619,000 1,838,936 41,457,935
Metro North Hospital and Health Service 115,592,765 15,335,966 130,928,731
Metro South Hospital and Health Service 86,612,744 13,352,211 99,964,955
North West Hospital and Health Service 4,507,967 2,353,414 6,861,381
South West Hospital and Health Service 0 4,579,202 4,579,202
Sunshine Coast Hospital and Health Service 30,065,258 4,412,376 34,477,634
Torres Strait - Northern Peninsula Hospital and Health Service 0 4,859,516 4,859,516
Townsville Hospital and Health Service 29,726,126 7,905,467 37,631,593
West Moreton Hospital and Health Service 15,412,352 8,666,520 24,078,872
Wide Bay Hospital and Health Service 22,059,020 5,161,291 27,220,311
Total 470,703,253 119,100,712 589,803,966

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 in each local hospital network report.

Note: This table excludes GST and payments to other provider organisations (non-local hospital networks).
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, see National Health Reform funding and payments.

Estimated monthly, YTD and annual NWAU by local hospital network

States and territories provide NHR funding amounts and service volumes as service 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.

Table 5 – Estimated monthly, YTD and annual NWAU by local hospital network – Queensland, June 2013

This table shows estimated state or territory hospital activity for activity-based funding services expressed as NWAU for June 2013, the associated cumulative year-to-date (YTD), and total estimated annual NWAU for each local hospital network in Queensland.

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 6,422 76,899 76,899
Central Queensland Hospital and Health Service 3,477 41,719 41,719
Children's Health Queensland Hospital and Health Service 3,448 41,126 41,126
Darling Downs Hospital and Health Service 3,318 39,819 39,819
Gold Coast Hospital and Health Service 9,625 115,499 115,499
Mackay Hospital and Health Service 2,726 32,712 32,712
Mater Misericordiae Health Service Brisbane 6,454 77,454 77,454
Metro North Hospital and Health Service 25,929 306,729 306,729
Metro South Hospital and Health Service 20,446 245,068 245,068
North West Hospital and Health Service 1,003 12,033 12,033
Sunshine Coast Hospital and Health Service 6,876 82,539 82,539
Townsville Hospital and Health Service 7,455 89,457 89,457
West Moreton Hospital and Health Service 3,512 42,142 42,142
Wide Bay Hospital and Health Service 5,021 60,214 60,214
Total 105,712 1,263,410 1,263,410

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.