Queensland report, March 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 March 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, March 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 March 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, March 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 March 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
261,004,872 261,004,872 261,004,872
Commonwealth
Block funding
32,198,861 32,198,861 32,198,861
Commonwealth
Other funding
5,851,177 5,851,177 5,851,177
Total C'wealth
funding
299,054,910 261,004,872 32,198,861 5,851,177 299,054,910
QLD
funding
398,739,008 593,235,223 0 8,900,000 602,135,223
Other state/territory funding 12,800,000 0 12,800,000 12,800,000
Total 710,593,918 854,240,096 32,198,861 18,651,177 8,900,000 913,990,134

See definitions and explanatory notes following table 1b.

Table 1b – State pool account transactions YTD – Queensland, March 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 March 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
2,218,898,338 2,218,898,338 2,218,898,338
Commonwealth
Block funding
289,789,745 289,789,745 289,789,745
Commonwealth
Other funding
53,560,286 53,560,286 53,560,286
Total C'wealth
funding
2,562,248,369 2,218,898,338 289,789,745 53,560,286 2,562,248,369
QLD
funding
4,159,286,375 4,132,220,543 0 26,700,000 4,158,920,543
Other state/territory funding 38,400,000 0 38,400,000 38,400,000
Total 6,759,934,744 6,351,118,881 289,789,745 91,960,286 26,700,000 6,759,568,912

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, March 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 March 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 65,354,331 98,030,953
Total 97,553,192 130,229,814 0 130,229,814

See explanatory notes following table 2b.

Table 2b – State managed fund transactions YTD – Queensland, March 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 March 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 289,789,745 289,789,745
State/territory Block funding 686,416,203 686,416,203
Total 976,205,948 976,205,948 0 976,205,948

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 2016

This table shows NHR funding and payments by service category on both a monthly and year-to-date (YTD) basis for Queensland for March 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 409,351,494 538,013,617 4,013,649,348 4,013,649,348
Admitted mental health 32,376,172 42,290,482 322,244,776 322,244,776
Sub-acute 34,844,886 45,541,281 332,587,187 332,587,187
Emergency department 92,935,968 121,650,535 898,286,284 898,286,284
Non-admitted 81,288,785 106,744,181 784,351,286 784,351,286
Total ABF (Pool) 650,797,305 854,240,096 6,351,118,881 6,351,118,881
Block
Small rural hospitals 50,052,362 65,391,773 494,768,237 494,323,923
Teaching, training & research 21,058,143 30,124,445 220,009,911 220,009,911
Non-admitted mental health 26,442,687 34,713,597 261,427,801 261,872,115
Other non-admitted services 0 0 0 0
Total Block (SMF) 97,553,192 130,229,814 976,205,948 976,205,948
Other
Public health funding 5,851,177 5,851,177 53,560,286 53,560,286
Overdeposit 0 0 0 0
Cross-border 21,700,000 21,700,000 65,100,000 65,100,000
Interest 46,575 0 365,832 0
Total Other (Pool) 27,597,752 27,551,177 119,026,118 118,660,286
Grand Total 775,948,249 1,012,021,087 7,446,350,947 7,445,985,115

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, March 2016

This table shows NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland during March 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 51,800,407 8,318,504 60,118,911
Central Queensland Hospital and Health Service 30,449,125 6,960,261 37,409,386
Central West Hospital and Health Service 0 3,076,799 3,076,799
Children's Health Queensland Hospital and Health Service 45,236,411 2,112,033 47,348,444
Darling Downs Hospital and Health Service 34,756,806 16,616,433 51,373,239
Gold Coast Hospital and Health Service 93,055,314 7,261,074 100,316,388
Mackay Hospital and Health Service 24,520,239 5,328,627 29,848,866
Mater Misericordiae Health Service Brisbane 29,165,764 10,861 29,176,625
Metro North Hospital and Health Service 180,303,109 15,353,145 195,656,254
Metro South Hospital and Health Service 161,077,848 17,087,123 178,164,970
North West Hospital and Health Service 6,666,941 3,143,675 9,810,616
South West Hospital and Health Service 0 6,835,093 6,835,093
Sunshine Coast Hospital and Health Service 56,695,050 4,919,759 61,614,810
Torres and Cape Hospital and Health Service 0 6,609,258 6,609,258
Townsville Hospital and Health Service 59,910,160 12,347,506 72,257,666
West Moreton Hospital and Health Service 32,742,074 11,845,309 44,587,383
Wide Bay Hospital and Health Service 44,944,272 2,403,268 47,347,539
Total 851,323,519 130,228,728 981,552,247

See explanatory notes below table 4b.

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

This table shows YTD NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland as at March 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 389,966,331 61,116,804 451,083,135
Central Queensland Hospital and Health Service 219,355,809 53,004,377 272,360,186
Central West Hospital and Health Service 0 22,262,934 22,262,934
Children's Health Queensland Hospital and Health Service 308,033,622 14,755,626 322,789,248
Darling Downs Hospital and Health Service 257,427,510 122,952,677 380,380,186
Gold Coast Hospital and Health Service 715,609,480 50,529,251 766,138,730
Mackay Hospital and Health Service 180,165,847 37,704,656 217,870,503
Mater Misericordiae Health Service Brisbane 304,147,896 7,810,823 311,958,719
Metro North Hospital and Health Service 1,333,150,241 108,091,640 1,441,241,881
Metro South Hospital and Health Service 1,165,698,987 124,054,905 1,289,753,892
North West Hospital and Health Service 48,642,754 22,429,103 71,071,857
South West Hospital and Health Service 0 49,487,599 49,487,599
Sunshine Coast Hospital and Health Service 437,283,499 35,179,290 472,462,789
Torres and Cape Hospital and Health Service 0 46,648,257 46,648,257
Townsville Hospital and Health Service 430,255,489 88,813,341 519,068,831
West Moreton Hospital and Health Service 225,878,497 86,220,045 312,098,542
Wide Bay Hospital and Health Service 305,088,130 44,363,537 349,451,667
Total 6,320,704,092 975,424,866 7,296,128,958

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 2016

This table shows estimated state or territory hospital activity for activity-based funding services expressed as NWAU for March 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 7,884 68,908 94,607
Central Queensland Hospital and Health Service 4,453 39,340 53,431
Children's Health Queensland Hospital and Health Service 5,149 44,600 61,792
Darling Downs Hospital and Health Service 5,417 47,637 64,999
Gold Coast Hospital and Health Service 13,829 122,996 165,950
Mackay Hospital and Health Service 3,295 29,015 39,539
Mater Misericordiae Health Service Brisbane 5,337 47,973 64,038
Metro North Hospital and Health Service 24,923 223,772 299,073
Metro South Hospital and Health Service 22,339 199,451 268,072
North West Hospital and Health Service 943 8,511 11,320
Sunshine Coast Hospital and Health Service 8,690 77,595 104,277
Townsville Hospital and Health Service 8,160 72,467 97,916
West Moreton Hospital and Health Service 4,645 41,572 55,740
Wide Bay Hospital and Health Service 5,601 48,950 67,207
Total 120,663 1,072,788 1,447,961

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.