Queensland report, March 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 March 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, March 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 March 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.

Queensland has revised their estimated NWAU to be delivered in 2013-14. This change takes effect from April 2014.

In February 2014, the Commonwealth provided Queensland with additional public hospital funding of $10,079,580.55 under the 2013-14 Mid-Year Economic and Fiscal Outlook (MYEFO) funding measure: Public Hospital System - additional funding. This funding was provided to offset the downward adjustment to 2013-14 NHR funding applied at the MYEFO due to the application of updated NHR funding indexation parameters. A requirement of the provision of this funding was that the funding be provided to LHNs through the National Health Funding Pool and / or State Managed Fund.

The Administrator has been advised by Queensland that the Queensland contributions to LHNs through the Pool between March and June 2014 will include this additional funding from the Commonwealth.

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, March 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 March 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
202,563,639 202,563,639 202,563,639
Commonwealth
Block funding
30,263,728 30,263,728 30,263,728
Commonwealth
Other funding
5,451,853 5,451,853 5,451,853
Total C'wealth
funding
238,279,220 202,563,639 30,263,728 5,451,853 238,279,220
QLD
funding
543,880,021 367,098,785 0 0 367,098,785
Other state/territory funding 0 0 0 0
Total 782,159,241 569,662,424 30,263,728 5,451,853 0 605,378,005

See definitions and explanatory notes following table 1b.

Table 1b – State pool account transactions YTD – Queensland, March 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 March 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
1,806,548,403 1,806,548,403 1,806,548,403
Commonwealth
Block funding
277,329,205 277,329,205 277,329,205
Commonwealth
Other funding
49,242,308 49,242,308 49,242,308
Total C'wealth
funding
2,133,119,916 1,806,548,403 277,329,205 49,242,308 2,133,119,916
QLD
funding
3,615,333,901 3,438,061,868 0 0 3,438,061,868
Other state/territory funding 0 0 0 0
Total 5,748,453,817 5,244,610,271 277,329,205 49,242,308 0 5,571,181,784

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, March 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 March 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 30,263,728 30,263,728
State/territory Block funding 70,031,069 46,161,791
Total 100,294,797 76,425,519 0 76,425,519

See explanatory notes following table 2b.

Table 2b – State managed fund transactions YTD – Queensland, March 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 March 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 277,329,205 277,329,205
State/territory Block funding 479,881,525 456,012,246
Total 757,210,730 733,341,451 0 733,341,451

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, March 2014

This table shows NHR funding and payments by service category on both a monthly and year-to-date (YTD) basis for Queensland for March 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 435,645,820 332,876,065 3,169,394,271 3,066,624,516
Acute admitted - private 37,119,735 28,221,363 264,077,558 255,179,185
Non-admitted 101,655,267 77,515,711 739,568,924 715,429,368
Emergency department 94,493,989 72,084,675 689,798,668 667,389,354
Admitted mental health 36,013,324 27,433,237 257,733,163 249,153,076
Sub-acute 41,451,271 31,531,373 300,754,669 290,834,771
Total ABF (Pool) 746,379,406 569,662,424 5,421,327,253 5,244,610,271
Block
Non-admitted mental health 30,487,322 23,164,189 231,825,024 224,420,336
Small rural hospitals 62,981,567 48,025,946 471,628,293 456,748,996
Teaching, training & research 5,992,929 4,602,886 47,452,959 46,062,916
Other non-admitted services 832,980 632,498 6,304,454 6,109,203
Total Block (SMF) 100,294,797 76,425,519 757,210,730 733,341,451
Other
Public health funding 5,451,853 5,451,853 49,242,308 49,242,308
Overdeposit 0 0 0 0
Cross-border 0 0 0 0
Interest 64,254 0 555,051 0
Total Other (Pool) 5,516,107 5,451,853 49,797,359 49,242,308
Grand Total 852,190,310 651,539,796 6,228,335,342 6,027,194,030

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, March 2014

This table shows NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland during March 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 31,284,257 4,903,020 36,187,277
Cape York Hospital and Health Service 0 1,609,335 1,609,335
Central Queensland Hospital and Health Service 18,647,178 5,545,935 24,193,112
Central West Hospital and Health Service 0 1,946,240 1,946,240
Children's Health Queensland Hospital and Health Service 19,263,169 1,592,695 20,855,864
Darling Downs Hospital and Health Service 18,365,423 12,529,394 30,894,817
Gold Coast Hospital and Health Service 51,274,974 2,606,212 53,881,186
Mackay Hospital and Health Service 14,919,585 2,970,721 17,890,306
Mater Misericordiae Health Service Brisbane 37,603,388 851,892 38,455,280
Metro North Hospital and Health Service 144,349,506 4,669,012 149,018,518
Metro South Hospital and Health Service 106,124,552 8,129,510 114,254,062
North West Hospital and Health Service 5,106,100 1,459,902 6,566,002
South West Hospital and Health Service 0 4,119,433 4,119,433
Sunshine Coast Hospital and Health Service 37,579,992 2,146,001 39,725,994
Torres Strait - Northern Peninsula Hospital and Health Service 0 3,621,665 3,621,665
Townsville Hospital and Health Service 37,553,551 6,262,835 43,816,387
West Moreton Hospital and Health Service 16,946,829 8,772,137 25,718,966
Wide Bay Hospital and Health Service 26,883,581 2,604,391 29,487,972
Total 565,902,085 76,340,330 642,242,415

See explanatory notes below table 4b.

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

This table shows YTD NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland as at March 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 317,870,023 47,131,647 365,001,669
Cape York Hospital and Health Service 0 15,323,144 15,323,144
Central Queensland Hospital and Health Service 179,358,049 52,581,236 231,939,285
Central West Hospital and Health Service 0 18,388,748 18,388,748
Children's Health Queensland Hospital and Health Service 151,619,839 15,032,921 166,652,759
Darling Downs Hospital and Health Service 193,684,767 118,541,865 312,226,632
Gold Coast Hospital and Health Service 521,771,558 24,963,641 546,735,199
Mackay Hospital and Health Service 142,392,283 28,141,912 170,534,195
Mater Misericordiae Health Service Brisbane 355,251,321 10,056,723 365,308,044
Metro North Hospital and Health Service 1,209,871,357 49,102,827 1,258,974,184
Metro South Hospital and Health Service 961,340,133 74,680,890 1,036,021,022
North West Hospital and Health Service 47,418,472 13,888,131 61,306,603
South West Hospital and Health Service 0 38,981,794 38,981,794
Sunshine Coast Hospital and Health Service 347,596,669 22,029,142 369,625,811
Torres Strait - Northern Peninsula Hospital and Health Service 0 34,197,568 34,197,568
Townsville Hospital and Health Service 366,055,000 61,116,537 427,171,536
West Moreton Hospital and Health Service 177,513,933 82,450,974 259,964,907
Wide Bay Hospital and Health Service 237,341,735 25,726,082 263,067,817
Total 5,209,085,139 732,335,779 5,941,420,917

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, March 2014

This table shows estimated state or territory hospital activity for activity-based funding services expressed as NWAU for March 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 7,068 63,613 85,032
Central Queensland Hospital and Health Service 3,746 33,711 44,940
Children's Health Queensland Hospital and Health Service 2,344 21,094 28,116
Darling Downs Hospital and Health Service 4,289 38,601 51,468
Gold Coast Hospital and Health Service 11,711 105,398 140,531
Mackay Hospital and Health Service 2,926 26,331 35,108
Mater Misericordiae Health Service Brisbane 6,885 61,965 82,618
Metro North Hospital and Health Service 23,337 210,037 278,398
Metro South Hospital and Health Service 20,149 181,337 247,623
North West Hospital and Health Service 1,063 9,564 12,583
Sunshine Coast Hospital and Health Service 7,531 67,781 90,330
Townsville Hospital and Health Service 7,400 66,601 89,073
West Moreton Hospital and Health Service 4,097 36,877 49,810
Wide Bay Hospital and Health Service 5,139 46,251 61,343
Total 107,685 969,163 1,296,974

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.