Queensland report, June 2016

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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 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, June 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 June 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, June 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 June 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
271,017,667 271,017,667 271,017,667
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
309,114,936 271,017,667 32,198,861 5,898,408 309,114,936
QLD
funding
471,850,456 462,917,347 33,109 8,900,000 471,850,456
Other state/territory funding 12,800,000 0 12,800,000 12,800,000
Total 793,765,392 733,935,014 32,198,861 18,731,517 8,900,000 793,765,392

See definitions and explanatory notes following table 1b.

Table 1b – State pool account transactions YTD – Queensland, June 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 June 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
3,073,510,232 3,073,510,232 3,073,510,232
Commonwealth
Block funding
386,386,326 386,386,326 386,386,326
Commonwealth
Other funding
71,161,048 71,161,048 71,161,048
Total C'wealth
funding
3,531,057,607 3,073,510,232 386,386,326 71,161,048 3,531,057,607
QLD
funding
5,466,644,228 5,430,497,416 546,812 35,600,000 5,466,644,228
Other state/territory funding 51,200,000 0 51,200,000 51,200,000
Total 9,048,901,835 8,504,007,648 386,386,326 122,907,860 35,600,000 9,048,901,835

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 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 June 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 65,361,577 65,361,577
Total 97,560,437 97,560,437 0 97,560,437

See explanatory notes following table 2b.

Table 2b – State managed fund transactions YTD – Queensland, June 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 June 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 386,386,326 386,386,326
State/territory Block funding 882,493,627 882,493,627
Total 1,268,879,954 1,268,879,954 0 1,268,879,954

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 2016

This table shows NHR funding and payments by service category on both a monthly and year-to-date (YTD) basis for Queensland for June 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 460,520,771 460,520,771 5,364,809,751 5,364,809,751
Admitted mental health 36,177,123 36,177,123 427,020,286 427,020,286
Sub-acute 38,371,563 38,371,563 443,851,537 443,851,537
Emergency department 102,081,445 102,081,445 1,199,092,009 1,199,092,009
Non-admitted 96,784,112 96,784,112 1,069,234,064 1,069,234,064
Total ABF (Pool) 733,935,014 733,935,014 8,504,007,648 8,504,007,648
Block
Small rural hospitals 50,052,411 49,998,734 644,925,372 644,281,241
Teaching, training & research 21,065,330 21,065,330 283,198,711 283,107,727
Non-admitted mental health 26,442,697 26,496,374 340,755,871 341,490,985
Other non-admitted services 0 0 0 0
Total Block (SMF) 97,560,437 97,560,437 1,268,879,954 1,268,879,954
Other
Public health funding 5,898,408 5,898,408 71,161,048 71,161,048
Overdeposit 0 0 0 0
Cross-border 21,700,000 21,700,000 86,800,000 86,800,000
Interest 33,109 546,812 546,812 546,812
Total Other (Pool) 27,631,517 28,145,220 158,507,860 158,507,860
Grand Total 859,126,968 859,640,671 9,931,395,462 9,931,395,462

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 2016

This table shows NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland during June 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 51,049,185 6,304,431 57,353,616
Central Queensland Hospital and Health Service 21,881,598 5,457,021 27,338,619
Central West Hospital and Health Service 0 2,316,774 2,316,774
Children's Health Queensland Hospital and Health Service 35,166,073 1,509,087 36,675,161
Darling Downs Hospital and Health Service 30,001,711 12,732,068 42,733,778
Gold Coast Hospital and Health Service 74,393,247 5,194,171 79,587,417
Mackay Hospital and Health Service 20,015,359 3,914,328 23,929,687
Mater Misericordiae Health Service Brisbane 20,166,305 82,712 20,249,017
Metro North Hospital and Health Service 149,260,913 11,121,193 160,382,106
Metro South Hospital and Health Service 178,120,863 12,760,739 190,881,601
North West Hospital and Health Service 4,844,062 2,333,235 7,177,297
South West Hospital and Health Service 0 5,149,475 5,149,475
Sunshine Coast Hospital and Health Service 46,608,487 3,623,837 50,232,323
Torres and Cape Hospital and Health Service 0 4,869,244 4,869,244
Townsville Hospital and Health Service 44,684,047 9,195,363 53,879,410
West Moreton Hospital and Health Service 28,328,643 8,938,235 37,266,878
Wide Bay Hospital and Health Service 27,397,892 2,050,254 29,448,146
Total 731,918,384 97,552,166 829,470,550

See explanatory notes below table 4b.

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

This table shows YTD NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland as at June 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 522,564,965 79,913,841 602,478,806
Central Queensland Hospital and Health Service 290,085,954 69,080,525 359,166,479
Central West Hospital and Health Service 0 29,249,234 29,249,234
Children's Health Queensland Hospital and Health Service 420,597,065 19,293,566 439,890,631
Darling Downs Hospital and Health Service 354,627,248 160,950,379 515,577,628
Gold Coast Hospital and Health Service 951,841,602 66,229,124 1,018,070,727
Mackay Hospital and Health Service 244,179,007 49,565,292 293,744,300
Mater Misericordiae Health Service Brisbane 362,716,776 7,987,108 370,703,884
Metro North Hospital and Health Service 1,810,325,090 141,609,522 1,951,934,613
Metro South Hospital and Health Service 1,585,327,219 162,151,932 1,747,479,151
North West Hospital and Health Service 64,848,150 29,492,437 94,340,586
South West Hospital and Health Service 0 65,012,327 65,012,327
Sunshine Coast Hospital and Health Service 580,482,633 46,059,810 626,542,443
Torres and Cape Hospital and Health Service 0 61,474,258 61,474,258
Townsville Hospital and Health Service 574,969,219 116,482,500 691,451,719
West Moreton Hospital and Health Service 300,967,388 113,047,408 414,014,796
Wide Bay Hospital and Health Service 404,203,654 50,481,980 454,685,634
Total 8,467,735,971 1,268,081,243 9,735,817,215

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 2016

This table shows estimated state or territory hospital activity for activity-based funding services expressed as NWAU for June 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 8,344 93,940 100,125
Central Queensland Hospital and Health Service 4,307 52,261 51,684
Children's Health Queensland Hospital and Health Service 5,515 61,145 66,180
Darling Downs Hospital and Health Service 5,801 65,041 69,616
Gold Coast Hospital and Health Service 14,447 166,336 173,358
Mackay Hospital and Health Service 3,541 39,637 42,487
Mater Misericordiae Health Service Brisbane 5,179 63,509 62,142
Metro North Hospital and Health Service 26,473 303,190 317,671
Metro South Hospital and Health Service 22,223 266,120 266,677
North West Hospital and Health Service 887 11,173 10,647
Sunshine Coast Hospital and Health Service 9,058 104,768 108,691
Townsville Hospital and Health Service 8,175 96,993 98,104
West Moreton Hospital and Health Service 4,703 55,681 56,436
Wide Bay Hospital and Health Service 5,453 65,310 65,439
Total 124,105 1,445,102 1,489,257

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.