Queensland report, May 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 May 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, May 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 May 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, May 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 May 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
221,353,251 221,353,251 221,353,251
Commonwealth
Block funding
32,680,425 32,680,425 32,680,425
Commonwealth
Other funding
5,662,557 5,662,557 5,662,557
Total C'wealth
funding
259,696,233 221,353,251 32,680,425 5,662,557 259,696,233
QLD
funding
443,455,079 443,419,951 0 0 443,419,951
Other state/territory funding 0 0 0 0
Total 703,151,312 664,773,202 32,680,425 5,662,557 0 703,116,184

See definitions and explanatory notes following table 1b.

Table 1b – State pool account transactions YTD – Queensland, May 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 May 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
2,371,751,533 2,371,751,533 2,371,751,533
Commonwealth
Block funding
360,783,469 360,783,469 360,783,469
Commonwealth
Other funding
62,634,722 62,634,722 62,634,722
Total C'wealth
funding
2,795,169,724 2,371,751,533 360,783,469 62,634,722 2,795,169,724
QLD
funding
4,757,178,968 4,756,692,669 0 0 4,756,692,669
Other state/territory funding 0 0 0 0
Total 7,552,348,692 7,128,444,202 360,783,469 62,634,722 0 7,551,862,393

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, May 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 May 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 32,680,425 32,680,425
State/territory Block funding 70,921,904 70,921,904
Total 103,602,330 103,602,330 0 103,602,330

See explanatory notes following table 2b.

Table 2b – State managed fund transactions YTD – Queensland, May 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 May 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 360,783,469 360,783,469
State/territory Block funding 860,172,968 860,172,968
Total 1,220,956,437 1,220,956,437 0 1,220,956,437

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, May 2015

This table shows NHR funding and payments by service category on both a monthly and year-to-date (YTD) basis for Queensland for May 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 421,637,380 421,637,380 4,514,149,294 4,514,149,294
Admitted mental health 34,215,548 34,215,548 354,012,121 354,012,121
Sub-acute 35,833,646 35,833,646 373,787,947 373,787,947
Emergency department 95,424,434 95,424,434 1,030,723,144 1,030,723,144
Non-admitted 77,662,195 77,662,195 855,771,697 855,771,697
Total ABF (Pool) 664,773,202 664,773,202 7,128,444,202 7,128,444,202
Block
Small rural hospitals 55,727,628 55,978,202 658,419,376 661,230,143
Teaching, training & research 21,971,348 21,971,348 246,727,573 246,702,983
Non-admitted mental health 25,309,083 25,131,342 308,905,861 306,924,042
Other non-admitted services 594,271 521,437 6,903,628 6,099,269
Total Block (SMF) 103,602,330 103,602,330 1,220,956,437 1,220,956,437
Other
Public health funding 5,662,557 5,662,557 62,634,722 62,634,722
Overdeposit 0 0 0
Cross-border 0 0 0 0
Interest 35,128 0 486,299 0
Total Other (Pool) 5,697,685 5,662,557 63,121,021 62,634,722
Grand Total 774,073,216 774,038,089 8,412,521,660 8,412,035,361

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, May 2015

This table shows NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland during May 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 47,542,376 7,041,411 54,583,787
Central Queensland Hospital and Health Service 20,750,942 6,858,421 27,609,364
Central West Hospital and Health Service 0 2,339,509 2,339,509
Children's Health Queensland Hospital and Health Service 29,615,941 1,211,110 30,827,050
Darling Downs Hospital and Health Service 25,302,352 14,189,657 39,492,009
Gold Coast Hospital and Health Service 79,147,538 4,654,898 83,802,436
Mackay Hospital and Health Service 17,636,592 3,677,882 21,314,474
Mater Misericordiae Health Service Brisbane 21,785,411 1,536,193 23,321,603
Metro North Hospital and Health Service 142,675,515 10,695,185 153,370,701
Metro South Hospital and Health Service 129,187,327 13,813,755 143,001,082
North West Hospital and Health Service 4,904,261 2,234,449 7,138,710
South West Hospital and Health Service 0 5,214,160 5,214,160
Sunshine Coast Hospital and Health Service 46,675,266 3,649,656 50,324,922
Torres and Cape Hospital and Health Service 0 4,374,934 4,374,934
Townsville Hospital and Health Service 40,493,511 9,345,730 49,839,240
West Moreton Hospital and Health Service 21,506,455 9,354,962 30,861,417
Wide Bay Hospital and Health Service 35,371,176 3,256,800 38,627,975
Total 662,594,661 103,448,710 766,043,372

See explanatory notes below table 4b.

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

This table shows YTD NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland as at May 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 445,403,855 82,350,783 527,754,638
Central Queensland Hospital and Health Service 238,446,943 80,085,410 318,532,353
Central West Hospital and Health Service 0 27,260,490 27,260,490
Children's Health Queensland Hospital and Health Service 277,472,634 14,239,906 291,712,540
Darling Downs Hospital and Health Service 274,213,745 165,504,687 439,718,432
Gold Coast Hospital and Health Service 766,172,036 54,791,412 820,963,448
Mackay Hospital and Health Service 200,363,637 42,996,106 243,359,743
Mater Misericordiae Health Service Brisbane 381,727,666 14,767,076 396,494,742
Metro North Hospital and Health Service 1,520,142,384 125,729,099 1,645,871,483
Metro South Hospital and Health Service 1,366,881,510 161,921,887 1,528,803,397
North West Hospital and Health Service 63,388,975 26,068,739 89,457,714
South West Hospital and Health Service 0 60,756,532 60,756,532
Sunshine Coast Hospital and Health Service 500,704,347 42,796,945 543,501,293
Torres and Cape Hospital and Health Service 0 50,977,712 50,977,712
Townsville Hospital and Health Service 477,802,657 109,268,895 587,071,552
West Moreton Hospital and Health Service 248,180,161 109,172,550 357,352,711
Wide Bay Hospital and Health Service 329,370,886 50,791,499 380,162,385
Total 7,090,271,436 1,219,479,730 8,309,751,165

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, May 2015

This table shows estimated state or territory hospital activity for activity-based funding services expressed as NWAU for May 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 81,384 90,104
Central Queensland Hospital and Health Service 3,907 42,734 46,882
Children's Health Queensland Hospital and Health Service 3,833 41,726 45,621
Darling Downs Hospital and Health Service 4,911 52,857 58,806
Gold Coast Hospital and Health Service 12,554 134,802 149,647
Mackay Hospital and Health Service 3,122 35,559 38,197
Mater Misericordiae Health Service Brisbane 5,910 65,188 70,352
Metro North Hospital and Health Service 24,561 265,329 293,285
Metro South Hospital and Health Service 21,679 238,101 261,013
North West Hospital and Health Service 925 10,581 11,071
Sunshine Coast Hospital and Health Service 8,466 91,745 101,340
Townsville Hospital and Health Service 7,860 83,004 93,497
West Moreton Hospital and Health Service 4,341 47,673 51,856
Wide Bay Hospital and Health Service 5,205 58,921 64,063
Total 114,811 1,249,603 1,375,734

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.