Queensland report, June 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 June 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, June 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 June 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, June 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 June 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
226,297,132 226,297,132 226,297,132
Commonwealth
Block funding
32,798,497 32,798,497 32,798,497
Commonwealth
Other funding
5,254,251 5,254,251 5,254,251
Total C'wealth
funding
264,349,880 226,297,132 32,798,497 5,254,251 264,349,880
QLD
funding
426,458,367 394,422,961 521,705 32,000,000 426,944,666
Other state/territory funding 58,000,000 0 58,000,000 58,000,000
Total 748,808,247 620,720,093 32,798,497 63,775,956 32,000,000 749,294,546

See definitions and explanatory notes following table 1b.

Table 1b – State pool account transactions YTD – Queensland, June 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 June 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
2,598,048,665 2,598,048,665 2,598,048,665
Commonwealth
Block funding
393,581,966 393,581,966 393,581,966
Commonwealth
Other funding
67,888,972 67,888,972 67,888,972
Total C'wealth
funding
3,059,519,604 2,598,048,665 393,581,966 67,888,972 3,059,519,604
QLD
funding
5,183,637,335 5,151,115,630 521,705 32,000,000 5,183,637,335
Other state/territory funding 58,000,000 0 58,000,000 58,000,000
Total 8,301,156,939 7,749,164,295 393,581,966 126,410,678 32,000,000 8,301,156,939

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, June 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 June 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 70,921,949 70,921,949
Total 103,720,446 103,720,446 0 103,720,446

See explanatory notes following table 2b.

Table 2b – State managed fund transactions YTD – Queensland, June 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 June 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 393,581,966 393,581,966
State/territory Block funding 931,094,917 931,094,917
Total 1,324,676,884 1,324,676,884 0 1,324,676,884

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 2015

This table shows NHR funding and payments by service category on both a monthly and year-to-date (YTD) basis for Queensland for June 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 392,673,078 392,673,078 4,906,822,372 4,906,822,372
Admitted mental health 31,902,616 31,902,616 385,914,737 385,914,737
Sub-acute 33,734,351 33,734,351 407,522,298 407,522,298
Emergency department 89,608,941 89,608,941 1,120,332,084 1,120,332,084
Non-admitted 72,801,108 72,801,108 928,572,804 928,572,804
Total ABF (Pool) 620,720,093 620,720,093 7,749,164,295 7,749,164,295
Block
Small rural hospitals 55,801,277 56,053,421 714,220,653 717,283,563
Teaching, training & research 21,978,726 21,978,726 268,706,299 268,681,708
Non-admitted mental health 25,345,188 25,166,169 334,251,049 332,090,211
Other non-admitted services 595,255 522,132 7,498,883 6,621,401
Total Block (SMF) 103,720,446 103,720,446 1,324,676,884 1,324,676,884
Other
Public health funding 5,254,251 5,254,251 67,888,972 67,888,972
Overdeposit 0 0 0 0
Cross-border 90,000,000 90,000,000 90,000,000 90,000,000
Interest 35,406 521,705 521,705 521,705
Total Other (Pool) 95,289,657 95,775,956 158,410,678 158,410,678
Grand Total 819,730,196 820,216,496 9,232,251,857 9,232,251,857

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, June 2015

This table shows NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland during June 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 38,735,243 7,049,496 45,784,738
Central Queensland Hospital and Health Service 20,759,730 6,866,817 27,626,547
Central West Hospital and Health Service 0 2,342,614 2,342,614
Children's Health Queensland Hospital and Health Service 23,808,351 1,212,185 25,020,537
Darling Downs Hospital and Health Service 24,530,453 14,207,805 38,738,258
Gold Coast Hospital and Health Service 67,249,833 4,658,781 71,908,614
Mackay Hospital and Health Service 16,924,516 3,682,178 20,606,693
Mater Misericordiae Health Service Brisbane 16,703,172 1,536,640 18,239,812
Metro North Hospital and Health Service 131,626,971 10,704,775 142,331,746
Metro South Hospital and Health Service 117,646,602 13,828,088 131,474,690
North West Hospital and Health Service 6,078,132 2,237,279 8,315,411
South West Hospital and Health Service 0 5,221,079 5,221,079
Sunshine Coast Hospital and Health Service 43,379,161 3,653,375 47,032,536
Torres and Cape Hospital and Health Service 0 4,380,739 4,380,739
Townsville Hospital and Health Service 50,261,232 9,356,591 59,617,822
West Moreton Hospital and Health Service 23,834,324 9,366,684 33,201,008
Wide Bay Hospital and Health Service 37,512,058 3,261,657 40,773,714
Total 619,049,776 103,566,782 722,616,558

See explanatory notes below table 4b.

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

This table shows YTD NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland as at June 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 484,139,097 89,400,279 573,539,376
Central Queensland Hospital and Health Service 259,206,673 86,952,227 346,158,900
Central West Hospital and Health Service 0 29,603,104 29,603,104
Children's Health Queensland Hospital and Health Service 301,280,986 15,452,091 316,733,077
Darling Downs Hospital and Health Service 298,744,198 179,712,493 478,456,691
Gold Coast Hospital and Health Service 833,421,869 59,450,193 892,872,062
Mackay Hospital and Health Service 217,288,152 46,678,284 263,966,437
Mater Misericordiae Health Service Brisbane 398,430,838 16,303,717 414,734,554
Metro North Hospital and Health Service 1,651,769,355 136,433,874 1,788,203,229
Metro South Hospital and Health Service 1,484,528,111 175,749,976 1,660,278,087
North West Hospital and Health Service 69,467,107 28,306,019 97,773,125
South West Hospital and Health Service 0 65,977,611 65,977,611
Sunshine Coast Hospital and Health Service 544,083,508 46,450,320 590,533,828
Torres and Cape Hospital and Health Service 0 55,358,451 55,358,451
Townsville Hospital and Health Service 528,063,889 118,625,486 646,689,374
West Moreton Hospital and Health Service 272,014,484 118,539,234 390,553,718
Wide Bay Hospital and Health Service 366,882,944 54,053,156 420,936,099
Total 7,709,321,211 1,323,046,512 9,032,367,724

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 2015

This table shows estimated state or territory hospital activity for activity-based funding services expressed as NWAU for June 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 7,537 88,922 90,449
Central Queensland Hospital and Health Service 3,907 46,642 46,888
Children's Health Queensland Hospital and Health Service 3,833 45,559 45,990
Darling Downs Hospital and Health Service 4,911 57,767 58,926
Gold Coast Hospital and Health Service 12,554 147,356 150,643
Mackay Hospital and Health Service 3,122 38,681 37,463
Mater Misericordiae Health Service Brisbane 5,910 71,098 70,924
Metro North Hospital and Health Service 24,561 289,890 294,732
Metro South Hospital and Health Service 21,679 259,780 260,153
North West Hospital and Health Service 925 11,506 11,104
Sunshine Coast Hospital and Health Service 8,466 100,211 101,591
Townsville Hospital and Health Service 7,860 90,864 94,320
West Moreton Hospital and Health Service 4,341 52,014 52,093
Wide Bay Hospital and Health Service 5,205 64,125 62,459
Total 114,811 1,364,414 1,377,733

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.