Queensland report, October 2012

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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 shows monthly and year-to-date (YTD) National Health Reform (NHR) funding and payments for Queensland for October 2012 as part of the National Health Reform Agreement.

As part of the transition to National Health Reform funding arrangements, the reported funding includes 'notional payments' paid into and out of the Queensland state pool account and state managed fund prior to Queensland enabling legislation being proclaimed for operation. Reporting in this way enables national comparability for month and year-to-date reporting periods.

Participation and provision of data

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. Under the legislation envisaged by the Agreement, states and territories using the Pool are required to provide data on NHR funding, payments and services to be published by the Administrator of the National Health Funding Pool.

In October 2012, Queensland used the National Health Funding Pool to process NHR funding and payments, and provided the data required for the Administrator's October 2012 monthly reports.

Local hospital networks and National Health Reform

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

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

The basis used to determine NHR payments to local hospital networks (LHNs) in Queensland for October 2012 was advised by Queensland 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 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 the NHR funding arrangements been in place between 1 July and 1 October 2012. Notional payments are included in 2012-13 reporting to enable national comparability for month and year-to-date reporting periods.

Transactions on the state pool account

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 state health department for October 2012.

Table 1a – State pool account transactions – Queensland, October 2012

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
180,799,654 181,295,455 181,295,455
Commonwealth
Block funding
41,905,571 41,897,000 41,897,000
Commonwealth
Other funding
5,275,343 5,275,343 5,275,343
Total Commonwealth
funding
227,980,568 181,295,455 41,897,000 5,275,343 228,467,798
Total state/territory
funding
288,713,964 432,267,847 0 432,267,847
Grand Total 516,694,532 613,563,302 41,897,000 5,275,343 660,735,645

See definitions and explanatory notes following table 1b.

Following on from table 1a, this table shows the year-to-date (YTD) 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 state health department as at October 2012. These amounts include notional payments for July 2012.

Table 1b – State pool account transactions YTD – Queensland, October 2012

NHR funding by source Paid into state pool account YTD Paid out of state pool account YTD
To local hospital networks To state managed
fund
To state health department Total paid out
YTD
($) ($) ($) ($) ($)
Commonwealth
ABF funding
723,198,615 724,285,312 724,285,312
Commonwealth
Block funding
167,622,286 167,596,583 167,596,583
Commonwealth
Other funding
21,101,372 21,101,372 21,101,372
Total Commonwealth
funding
911,922,273 724,285,312 167,596,583 21,101,372 912,983,267
Total state/territory
funding
1,389,989,118 1,385,359,873 0 1,385,359,873
Grand Total 2,301,911,390 2,109,645,185 167,596,583 21,101,372 2,298,343,140

Note: Of the total year-to-date amount of $2,301,911,390 shown in Table 1b as paid into the Queensland state pool account, $571,873,764 was notional year-to-date payments.

Note: Of the total year-to-date amount of $2,298,343,140 shown in Table 1b as paid out of the Queensland state pool account, $566,142,926 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 in by Queensland into its own state pool account, and subsequently paid to local hospital networks within the state or territory 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 on NHR funding and payments, see National Health Reform funding and payments.

Transactions on the state managed fund

This table shows funding paid into the Queensland state managed fund by the Commonwealth and Queensland and payments out of the state managed fund for October 2012.

Table 2a – State managed fund transactions – Queensland, October 2012

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 41,897,000 41,984,455
State/territory Block funding 84,194,047 126,196,070
Total 126,091,047 168,180,525 0 168,180,525

See explanatory notes following table 2b.

Following on from table 2a, this table shows the year-to-date (YTD) funding paid into the Queensland state managed fund by the Commonwealth and Queensland and payments out of the state managed fund as at October 2012. These amounts include notional payments for July 2012.

Table 2b – State managed fund transactions YTD – Queensland, October 2012

NHR funding by source Paid into state managed fund YTD Paid out of state managed fund YTD
To local hospital networks To Other Total paid out
YTD
($) ($) ($) ($)
Commonwealth Block funding 167,596,583 167,684,038
State/territory Block funding 379,206,204 379,034,538
Total 546,802,787 546,718,576 0 546,718,576

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 information on NHR funding and payments, see National Health Reform funding and payments.

NHR funding and payments by service category

This table shows the NHR funding and payments by service category on both a monthly and year-to-date (YTD) basis for Queensland for October 2012.

NHR funding and payments are separated into an activity based funding (ABF) component, block component, and other components.

Table 3 – NHR funding and payments by service category – Queensland, October 2012

Service category NHR funding NHR payments NHR funding
YTD
NHR payments
YTD
($) ($) ($) ($)
ABF
Acute admitted - public 315,431,736 412,434,693 1,421,367,281 1,419,058,887
Acute admitted - private 25,014,604 32,576,170 111,152,762 111,016,161
Non-admitted 73,275,068 95,860,362 330,140,823 329,733,563
Emergency department 55,664,356 72,692,076 250,350,477 249,836,574
Total ABF (Pool) 469,385,764 613,563,302 2,113,011,343 2,109,645,185
Block
Mental health 17,977,138 23,503,277 77,797,630 76,373,829
Small rural & metro hospitals 54,073,039 66,774,841 233,031,722 217,256,486
Sub-acute 30,730,895 41,925,256 133,419,371 136,006,473
Teaching, training & research 23,318,546 35,977,150 102,579,762 117,081,788
Other 0 0 0 0
Total Block (SMF) 126,099,618 168,180,525 546,828,485 546,718,576
Other
Public health funding 5,275,343 5,275,343 21,101,372 21,101,372
Overdeposit 0 0 0 0
Cross border 0 0 0 0
Interest 127,854 0 176,390 0
Total Other (Pool) 5,403,197 5,275,343 21,277,762 21,101,372
Grand Total 600,888,579 787,019,170 2,681,117,590 2,677,465,133

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 payment 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 on NHR funding and payments, see National Health Reform funding and payments.

NHR payment distribution by LHN

This table shows NHR payments (from state, territory and Commonwealth sources) made to each local hospital network (LHN) in Queensland during October 2012.

NHR payments are separated into an activity based funding (ABF) component and a block component.

Table 4 – NHR payment distribution by LHN – Queensland, October 2012

Local hospital network (LHN) ABF component
(ex GST)
Block component
(ex GST)
Total NHR payments
(ex GST)
($) ($) ($)
Cairns and Hinterland Hospital and Health Service 37,785,000 9,336,000 47,121,000
Cape York Hospital and Health Service 0 4,238,000 4,238,000
Central Queensland Hospital and Health Service 20,192,000 11,454,000 31,646,000
Central West Hospital and Health Service 0 3,284,000 3,284,000
Children's Health Queensland Hospital and Health Service 20,351,000 3,289,000 23,640,000
Darling Downs Hospital and Health Service 19,449,000 21,845,000 41,294,000
Gold Coast Hospital and Health Service 57,657,000 9,563,000 67,220,000
Mackay Hospital and Health Service 15,950,000 8,024,000 23,974,000
Mater Misericordiae Health Service Brisbane 27,832,093 1,796,841 29,628,934
Metro North Hospital and Health Service 150,422,000 20,686,000 171,108,000
Metro South Hospital and Health Service 119,862,000 20,106,000 139,968,000
North West Hospital and Health Service 5,955,000 3,173,000 9,128,000
South West Hospital and Health Service 0 6,151,000 6,151,000
Sunshine Coast Hospital and Health Service 40,778,000 6,139,000 46,917,000
Torres Strait - Northern Peninsula Hospital and Health Service 0 6,553,000 6,553,000
Townsville Hospital and Health Service 43,993,000 13,732,000 57,725,000
West Moreton Hospital and Health Service 20,845,000 11,682,000 32,527,000
Wide Bay Hospital and Health Service 29,709,000 6,949,000 36,658,000
Total 610,780,093 168,000,841 778,780,934

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 to each local hospital network within the jurisdiction and allow for reconciliation against the Table 1a for each local hospital network report.

Note: 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 on NHR funding and payments, see National Health Reform funding and payments.

Estimated monthly, YTD and annual NWAU by LHN

This table shows estimated state or territory hospital activity for activity based funding services expressed as National Weighted Activity Units (NWAU) for October 2012, the associated cumulative year-to-date (YTD) and total annual estimated NWAU for each local hospital network in Queensland.

NHR funding amounts and service volumes are provided by states and territories as service estimates at the start of each financial year, and may continue to be refined during the course of the year. These estimates form the basis of monthly reporting of service volumes until actual service numbers become available.

The estimated annual NWAU for each local hospital network (LHN) was provided to the Administrator as a basis for determining the Commonwealth NHR activity based funding. Current month NWAU estimates accumulate through the year-to-date NWAU to equal the annual NWAU at the end of the financial year.

Table 5 – Estimated monthly, YTD and annual NWAU by LHN – Queensland, October 2012

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 25,628 76,884
Central Queensland Hospital and Health Service 3,477 13,906 41,719
Children's Health Queensland Hospital and Health Service 3,384 13,537 40,610
Darling Downs Hospital and Health Service 3,318 13,273 39,819
Gold Coast Hospital and Health Service 9,625 38,498 115,494
Mackay Hospital and Health Service 2,726 10,904 32,712
Mater Misericordiae Health Service Brisbane 6,454 25,818 77,454
Metro North Hospital and Health Service 25,525 102,099 306,297
Metro South Hospital and Health Service 20,374 81,494 244,483
North West Hospital and Health Service 1,003 4,011 12,033
Sunshine Coast Hospital and Health Service 6,883 27,534 82,602
Townsville Hospital and Health Service 7,455 29,819 89,457
West Moreton Hospital and Health Service 3,512 14,047 42,142
Wide Bay Hospital and Health Service 5,013 20,050 60,150
Total 105,155 420,618 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 NHR funding and payments, see National Health Reform funding and payments.

For more information on the NWAU calculation, see Calculation of NWAU.