Queensland report, May 2013

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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 May 2013 as part of the National Health Reform Agreement.

Participation in the National Health Funding Pool – Queensland, May 2013

In signing the National Health Reform Agreement (the Agreement), it was the intention of all states and territories that they would have the necessary legislation in place to enable them to participate in the National Health Funding Pool from 1 July 2012.

However, not all states and territories had their legislation in place by that date. As part of the transition to National Health Reform funding, arrangements were put in place whereby those states and territories received equivalent funding directly from the Commonwealth Treasury, and made payments directly from departmental bank accounts to local hospital networks (LHNs). Although these transactions were not made through state pool accounts and state managed funds, they have been included in this report (and designated as ‘notional payments’ into and out of state pool accounts and state managed funds) to enable national comparability for month and year-to-date reporting periods.

Queensland has participated in the National Health Funding Pool since 1 August 2012.

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. A local hospital network 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 a local hospital network.

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, local hospital networks 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: Local hospital networks 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 local hospital network, contact the Queensland Department of Health to view the service agreement for that local hospital network.

Basis for National Health Reform payments – Queensland, May 2013

For the basis of the Commonwealth contribution to NHR funding, see Basis of Commonwealth NHR funding, 2012-13.

The basis used to determine NHR payments to local hospital networks (LHNs) in Queensland for May 2013 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.

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 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.
  • Notional NHR payments – funds paid into and out of departmental bank accounts to local hospital networks that would have been transacted through the state pool account and/or state managed fund had NHR funding arrangements been in place. Notional payments are included in 2012-13 reporting to enable national comparability for month and year-to-date reporting periods.

State pool account transactions

Table 1a – State pool account transactions – Queensland, May 2013

This table shows funding paid into the Queensland state pool account by the Commonwealth and Queensland, and payments out of the state pool account to local hospital networks, the state managed fund, and the Queensland Department of Health for May 2013.

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
Total paid out
($) ($) ($) ($) ($)
Commonwealth
ABF funding
168,916,595 167,438,173 167,438,173
Commonwealth
Block funding
39,152,823 38,849,427 38,849,427
Commonwealth
Other funding
5,064,408 5,064,408 5,064,408
Total C'wealth
funding
213,133,825 167,438,173 38,849,427 5,064,408 211,352,007
Total state/territory
funding
316,919,457 317,905,124 0 317,905,124
Grand Total 530,053,282 485,343,297 38,849,427 5,064,408 529,257,131

See definitions and explanatory notes following table 1b.

Table 1b – State pool account transactions YTD – Queensland, May 2013

Following on from table 1a, this table shows year-to-date (YTD) funding paid into the Queensland state pool account by the Commonwealth and Queensland, and YTD payments out of the state pool account to local hospital networks, the state managed fund, and the Queensland Department of Health as at May 2013. These amounts include notional payments for July 2012.

NHR funding by source Paid into state
pool account
YTD
Paid out of state pool account YTD
To local hospital
networks
YTD
To state
managed fund
YTD
To state health
department
YTD
Total paid out
YTD
($) ($) ($) ($) ($)
Commonwealth
ABF funding
1,917,497,839 1,901,066,352 1,901,066,352
Commonwealth
Block funding
444,444,793 444,141,397 444,141,397
Commonwealth
Other funding
56,763,161 56,763,161 56,763,161
Total C'wealth
funding
2,418,705,793 1,901,066,352 444,141,397 56,763,161 2,401,970,910
Total state/territory
funding
3,743,019,024 3,758,403,923 30 3,758,403,953
Grand Total 6,161,724,817 5,659,470,274 444,141,397 56,763,191 6,160,374,862

Note:Of the total year-to-date amount of $6,161,724,817 shown in Table 1b as paid into the Queensland state pool account, $567,126,486 was notional year-to-date payments.
Of the total year-to-date amount of $6,160,374,862 shown in Table 1b as paid out of the Queensland state pool account, $567,126,486 was notional year-to-date payments.
No payments were made from the Queensland state pool account in July 2012, with payments made directly from departmental bank accounts to local hospital networks.

Commonwealth ABF funding represents Acute admitted public, Acute admitted private, Non-admitted, and Emergency department service categories, which are funded by the Commonwealth through the state pool account and subsequently paid to local hospital networks.

Commonwealth Block funding represents Mental health, Small rural and metropolitan hospitals, Sub-acute, Teaching, training and research, and Other 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.

State/territory funding represents funding contributions paid by Queensland into its own state pool account, and subsequently paid to local hospital networks within the state and/or to state or territory health departments.

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, May 2013

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 local hospital networks and other provider organisations for May 2013.

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 38,849,427 38,802,533
State/territory Block funding 86,355,961 86,402,855
Total 125,205,388 125,205,388 0 125,205,388

See explanatory notes following table 2b.

Table 2b – State managed fund transactions YTD – Queensland, May 2013

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 May 2013. 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 444,141,397 443,447,302
State/territory Block funding 1,030,435,069 1,031,068,144
Total 1,474,576,466 1,474,515,446 0 1,474,515,446

Block funding represents Mental health, Small rural and metropolitan hospitals, Sub-acute, Teaching, training and research, and Other 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 local hospital networks 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 local hospital networks 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, May 2013

This table shows NHR funding and payments by service category on both a monthly and year-to-date (YTD) basis for Queensland for May 2013. 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 - public 327,260,276 326,534,767 3,809,803,321 3,809,221,844
Acute admitted - private 25,200,592 25,582,242 297,080,684 297,339,782
Non-admitted 76,083,837 75,761,926 883,784,348 883,685,758
Emergency department 57,238,827 57,464,362 669,242,187 669,222,890
Total ABF (Pool) 485,783,531 485,343,297 5,659,910,539 5,659,470,274
Block
Mental health 17,761,120 17,431,228 209,443,779 206,090,301
Small rural and metro hospitals 54,281,029 50,812,223 635,376,811 598,055,443
Sub-acute 29,895,736 30,271,893 350,924,686 355,586,067
Teaching, training and research 23,570,899 26,690,045 279,134,587 314,783,635
Other 0 0 0 0
Total Block (SMF) 125,508,784 125,205,388 1,474,879,862 1,474,515,446
Other
Public health funding 5,064,408 5,064,408 56,763,161 56,763,161
Overdeposit 0 0 0 0
Cross-border 0 0 0 0
Interest 52,521 0 606,324 30
Total Other (Pool) 5,116,929 5,064,408 57,369,485 56,763,191
Grand Total 616,409,244 615,613,092 7,192,159,886 7,190,748,911

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 local hospital networks - 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 local hospital networks are already being funded for the cost of treating cross-border patients - shown in the Cross-border row under Other in the above table.

Cross-border funding arrangements between states and territories are yet to be put in place for state and territory contributions.

NHR funding and payments shown in these tables include GST where applicable.

For more information, see National Health Reform funding and payments.

NHR payment distribution by local hospital network

Table 4 – NHR payment distribution by local hospital network – Queensland, May 2013

This table shows NHR payments (from state, territory and Commonwealth sources) made to each local hospital network (LHN) in Queensland during May 2013.

NHR payments distributed to local hospital networks (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 payments
(ex GST)
($) ($) ($)
Cairns and Hinterland Hospital and Health Service 28,719,440 6,922,607 35,642,047
Cape York Hospital and Health Service 0 3,125,593 3,125,593
Central Queensland Hospital and Health Service 17,898,828 8,713,320 26,612,148
Central West Hospital and Health Service 0 2,445,803 2,445,803
Children's Health Queensland Hospital and Health Service 15,830,466 2,434,424 18,264,890
Darling Downs Hospital and Health Service 14,848,207 16,199,490 31,047,697
Gold Coast Hospital and Health Service 43,036,057 7,125,154 50,161,211
Mackay Hospital and Health Service 12,269,200 5,950,712 18,219,912
Mater Misericordiae Health Service Brisbane 31,324,127 1,439,698 32,763,825
Metro North Hospital and Health Service 116,781,350 15,228,334 132,009,684
Metro South Hospital and Health Service 91,940,388 14,904,565 106,844,953
North West Hospital and Health Service 4,587,482 2,396,234 6,983,716
South West Hospital and Health Service 0 4,579,202 4,579,202
Sunshine Coast Hospital and Health Service 33,122,888 4,768,842 37,891,730
Torres Strait - Northern Peninsula Hospital and Health Service 0 4,859,516 4,859,516
Townsville Hospital and Health Service 33,617,983 10,183,610 43,801,593
West Moreton Hospital and Health Service 15,813,731 8,665,141 24,478,872
Wide Bay Hospital and Health Service 22,420,737 5,119,173 27,539,910
Total 482,210,884 125,061,418 607,272,302

A local hospital network (LHN) is an organisation that provides public hospital services in accordance with the National Health Reform Agreement. A local hospital network 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 a local hospital network.

NHR payments in this table are GST exclusive to enable comparability of NHR payments in each local hospital network report.

Note: This table excludes GST and payments to other provider organisations (non-local hospital networks).
The majority of government funding to local hospital networks 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 NWAU by local hospital network

States and territories provide NHR funding amounts and service volumes as service 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.

Table 5 – Estimated monthly, YTD and annual NWAU by local hospital network – Queensland, May 2013

This table shows estimated state or territory hospital activity for activity-based funding services expressed as NWAU for May 2013, the associated cumulative year-to-date (YTD), and total estimated annual NWAU for each local hospital network in Queensland.

Local hospital network (LHN) Estimated NWAU delivered in current month Estimated NWAU delivered YTD Estimated annual NWAU 2012-13
Cairns and Hinterland Hospital and Health Service 6,407 70,477 76,884
Central Queensland Hospital and Health Service 3,477 38,242 41,719
Children's Health Queensland Hospital and Health Service 3,449 37,678 40,610
Darling Downs Hospital and Health Service 3,318 36,501 39,819
Gold Coast Hospital and Health Service 9,625 105,874 115,494
Mackay Hospital and Health Service 2,726 29,986 32,712
Mater Misericordiae Health Service Brisbane 6,454 70,999 77,454
Metro North Hospital and Health Service 25,529 280,800 306,297
Metro South Hospital and Health Service 20,447 224,622 244,483
North West Hospital and Health Service 1,003 11,030 12,033
Sunshine Coast Hospital and Health Service 6,876 75,663 82,602
Townsville Hospital and Health Service 7,455 82,002 89,457
West Moreton Hospital and Health Service 3,512 38,630 42,142
Wide Bay Hospital and Health Service 5,020 55,193 60,150
Total 105,297 1,157,698 1,261,855

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.