Queensland report, June 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 June 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, June 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 June 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.

Between February and June 2014, the Commonwealth provided Queensland with additional public hospital funding of $41,461,823.22 under the funding measure: National Partnership on public hospital system - additional funding. This funding was provided to offset the downward adjustments to 2013-14 NHR funding applied at the 2013-14 Mid-Year Economic and Fiscal Outlook (MYEFO) and the 2014-15 Budget, due to the application of updated NHR funding indexation parameters. A requirement of the provision of this funding was that it is passed on in full through the National Health Funding Pool and / or State Managed Fund to LHNs for activity based and block funding, and state and territory health departments for public health 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, June 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 June 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
173,636,759 173,636,759 173,636,759
Commonwealth
Block funding
26,599,766 26,599,766 26,599,766
Commonwealth
Other funding
4,745,517 4,745,517 4,745,517
Total C'wealth
funding
204,982,042 173,636,759 26,599,766 4,745,517 204,982,042
QLD
funding
426,071,326 426,032,488 710,271 0 426,742,759
Other state/territory funding 0 0 0 0
Total 631,053,367 599,669,247 26,599,766 5,455,788 0 631,724,801

See definitions and explanatory notes following table 1b.

Table 1b – State pool account transactions YTD – Queensland, June 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 June 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
2,384,821,673 2,384,821,673 2,384,821,673
Commonwealth
Block funding
365,254,279 365,254,279 365,254,279
Commonwealth
Other funding
64,891,531 64,891,531 64,891,531
Total C'wealth
funding
2,814,967,483 2,384,821,673 365,254,279 64,891,531 2,814,967,483
QLD
funding
4,769,612,683 4,768,902,412 710,271 0 4,769,612,683
Other state/territory funding 0 0 0 0
Total 7,584,580,166 7,153,724,085 365,254,279 65,601,802 0 7,584,580,166

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, June 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 June 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 26,599,766 26,599,766
State/territory Block funding 51,679,207 51,679,207
Total 78,278,974 78,278,974 0 78,278,974

See explanatory notes following table 2b.

Table 2b – State managed fund transactions YTD – Queensland, June 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 June 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 365,254,279 365,254,279
State/territory Block funding 625,752,056 625,752,055
Total 991,006,335 991,006,334 0 991,006,334

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, June 2014

This table shows NHR funding and payments by service category on both a monthly and year-to-date (YTD) basis for Queensland for June 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 352,052,553 352,052,553 4,185,178,720 4,185,178,721
Acute admitted - private 29,215,467 29,215,467 347,830,538 347,830,538
Non-admitted 80,960,422 80,960,422 974,675,598 974,675,598
Emergency department 75,657,334 75,657,334 909,811,802 909,811,802
Admitted mental health 28,498,807 28,498,807 339,448,805 339,448,805
Sub-acute 33,284,664 33,284,664 396,778,621 396,778,621
Total ABF (Pool) 599,669,247 599,669,247 7,153,724,085 7,153,724,085
Block
Non-admitted mental health 24,122,799 24,117,420 303,703,397 303,752,934
Small rural hospitals 48,870,039 48,875,628 617,585,342 617,551,248
Teaching, training & research 4,668,131 4,668,131 61,495,475 61,495,475
Other non-admitted services 618,005 617,794 8,222,120 8,206,676
Total Block (SMF) 78,278,974 78,278,974 991,006,335 991,006,334
Other
Public health funding 4,745,517 4,745,517 64,891,531 64,891,531
Overdeposit 0 0 0 0
Cross-border 0 0 0 0
Interest 38,837 710,271 710,271 710,271
Total Other (Pool) 4,784,354 5,455,788 65,601,802 65,601,802
Grand Total 682,732,575 683,404,008 8,210,332,222 8,210,332,221

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, June 2014

This table shows NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland during June 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 41,468,951 6,075,238 47,544,190
Cape York Hospital and Health Service 0 1,633,850 1,633,850
Central Queensland Hospital and Health Service 19,300,447 5,595,983 24,896,430
Central West Hospital and Health Service 0 1,959,538 1,959,538
Children's Health Queensland Hospital and Health Service 18,079,106 2,572,859 20,651,965
Darling Downs Hospital and Health Service 20,324,846 12,632,771 32,957,617
Gold Coast Hospital and Health Service 64,081,293 2,526,159 66,607,452
Mackay Hospital and Health Service 15,515,095 2,996,801 18,511,896
Mater Misericordiae Health Service Brisbane 38,321,872 803,883 39,125,754
Metro North Hospital and Health Service 142,077,233 4,945,677 147,022,910
Metro South Hospital and Health Service 108,081,868 7,579,452 115,661,320
North West Hospital and Health Service 5,139,801 1,481,736 6,621,537
South West Hospital and Health Service 0 4,160,310 4,160,310
Sunshine Coast Hospital and Health Service 38,655,700 2,200,122 40,855,822
Torres Strait - Northern Peninsula Hospital and Health Service 0 3,648,674 3,648,674
Townsville Hospital and Health Service 38,488,909 6,176,365 44,665,275
West Moreton Hospital and Health Service 19,236,551 8,544,510 27,781,061
Wide Bay Hospital and Health Service 27,065,387 2,664,657 29,730,044
Total 595,837,060 78,198,585 674,035,645

See explanatory notes below table 4b.

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

This table shows YTD NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland as at June 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 443,332,544 65,304,155 508,636,699
Cape York Hospital and Health Service 0 20,705,229 20,705,229
Central Queensland Hospital and Health Service 245,876,856 70,917,393 316,794,249
Central West Hospital and Health Service 0 24,863,904 24,863,904
Children's Health Queensland Hospital and Health Service 206,306,123 21,805,669 228,111,792
Darling Downs Hospital and Health Service 265,540,962 160,090,557 425,631,519
Gold Coast Hospital and Health Service 719,962,219 33,480,091 753,442,310
Mackay Hospital and Health Service 196,229,358 37,978,791 234,208,148
Mater Misericordiae Health Service Brisbane 481,837,939 12,784,845 494,622,784
Metro North Hospital and Health Service 1,642,921,496 65,801,565 1,708,723,061
Metro South Hospital and Health Service 1,308,101,145 100,845,715 1,408,946,861
North West Hospital and Health Service 64,098,517 18,778,083 82,876,600
South West Hospital and Health Service 0 52,721,489 52,721,489
Sunshine Coast Hospital and Health Service 470,547,278 29,504,054 500,051,332
Torres Strait - Northern Peninsula Hospital and Health Service 0 46,237,663 46,237,663
Townsville Hospital and Health Service 496,297,076 82,068,456 578,365,532
West Moreton Hospital and Health Service 242,019,538 111,206,602 353,226,140
Wide Bay Hospital and Health Service 322,469,240 34,633,590 357,102,830
Total 7,105,540,291 989,727,849 8,095,268,140

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, June 2014

This table shows estimated state or territory hospital activity for activity-based funding services expressed as NWAU for June 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 7,311 85,303 87,731
Central Queensland Hospital and Health Service 3,767 44,991 45,206
Children's Health Queensland Hospital and Health Service 2,337 28,112 28,047
Darling Downs Hospital and Health Service 4,343 51,577 52,117
Gold Coast Hospital and Health Service 11,629 140,367 139,547
Mackay Hospital and Health Service 2,938 35,133 35,256
Mater Misericordiae Health Service Brisbane 6,962 82,774 83,540
Metro North Hospital and Health Service 23,424 280,222 281,084
Metro South Hospital and Health Service 20,269 242,023 243,223
North West Hospital and Health Service 1,045 12,717 12,545
Sunshine Coast Hospital and Health Service 7,527 90,367 90,328
Townsville Hospital and Health Service 7,362 88,725 88,339
West Moreton Hospital and Health Service 4,091 49,156 49,088
Wide Bay Hospital and Health Service 5,158 61,707 61,899
Total 108,162 1,293,172 1,297,949

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.