Queensland report, October 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 October 2013 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, October 2013

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 October 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.

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.

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, October 2013

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 October 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
To state pool (other State) Total paid out
($) ($) ($) ($) ($) ($)
Commonwealth
ABF funding
200,651,428 200,651,428 200,651,428
Commonwealth
Block funding
31,131,216 31,131,216 31,131,216
Commonwealth
Other funding
5,482,668 5,482,668 5,482,668
Total C'wealth
funding
237,265,312 200,651,428 31,131,216 5,482,668 237,265,312
QLD
funding
346,342,873 518,443,086 0 0 518,443,086
Other state/territory funding 0 0
Total 583,608,185 719,094,514 31,131,216 5,482,668 0 755,708,398

See definitions and explanatory notes following table 1b.

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

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 October 2013.

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
802,546,092 802,546,092 802,546,092
Commonwealth
Block funding
124,515,615 124,515,615 124,515,615
Commonwealth
Other funding
21,930,672 21,930,672 21,930,672
Total C'wealth
funding
948,992,379 802,546,092 124,515,615 21,930,672 948,992,379
QLD
funding
1,595,390,841 1,594,204,090 0 0 1,594,204,090
Other state/territory funding 0 0
Total 2,544,383,219 2,396,750,182 124,515,615 21,930,672 0 2,543,196,468

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, October 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 LHNs and other provider organisations for October 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 31,131,216 31,131,216
State/territory Block funding 46,872,004 70,577,671
Total 78,003,220 101,708,887 0 101,708,887

See explanatory notes following table 2b.

Table 2b – State managed fund transactions YTD – Queensland, October 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 October 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 124,515,615 124,515,615
State/territory Block funding 213,954,731 213,633,689
Total 338,470,346 338,149,304 0 338,149,304

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, October 2013

This table shows NHR funding and payments by service category on both a monthly and year-to-date (YTD) basis for Queensland for October 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 YTD NHR
funding
YTD NHR
payments
($) ($) ($) ($)
ABF
Acute admitted - public 316,134,964 415,220,882 1,388,123,338 1,387,529,109
Acute admitted - private 26,001,187 34,461,612 115,292,685 115,514,848
Non-admitted 70,707,043 92,833,232 308,783,910 308,450,361
Emergency department 74,802,772 98,417,308 327,011,006 326,891,667
Admitted mental health 29,185,715 38,479,603 127,534,674 127,552,196
Sub-acute 30,113,841 39,681,877 130,883,342 130,812,001
Total ABF (Pool) 546,945,523 719,094,514 2,397,628,955 2,396,750,182
Block
Non-admitted mental health 23,644,425 30,740,068 103,134,365 102,093,464
Small rural hospitals 49,007,759 63,799,667 210,806,881 210,827,774
Teaching, training & research 4,696,013 6,316,339 21,710,587 22,410,148
Other non-admitted services 655,022 852,814 2,818,514 2,817,917
Total Block (SMF) 78,003,220 101,708,887 338,470,346 338,149,304
Other
Public health funding 5,482,668 5,482,668 21,930,672 21,930,672
Overdeposit 0 0 0 0
Cross-border 0 0 0 0
Interest 48,778 0 307,978 0
Total Other (Pool) 5,531,446 5,482,668 22,238,650 21,930,672
Grand Total 630,480,189 826,286,070 2,758,337,951 2,756,830,157

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, October 2013

This table shows NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland during October 2013.

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 46,554,584 6,608,048 53,162,632
Cape York Hospital and Health Service 0 2,144,701 2,144,701
Central Queensland Hospital and Health Service 25,399,609 7,376,718 32,776,327
Central West Hospital and Health Service 0 2,569,663 2,569,663
Children's Health Queensland Hospital and Health Service 17,088,906 2,075,614 19,164,520
Darling Downs Hospital and Health Service 29,120,202 16,561,324 45,681,526
Gold Coast Hospital and Health Service 77,166,978 3,535,574 80,702,552
Mackay Hospital and Health Service 19,591,006 3,937,636 23,528,642
Mater Misericordiae Health Service Brisbane 37,586,741 754,602 38,341,343
Metro North Hospital and Health Service 159,861,601 6,975,192 166,836,793
Metro South Hospital and Health Service 133,770,159 10,180,507 143,950,666
North West Hospital and Health Service 6,823,639 1,942,850 8,766,489
South West Hospital and Health Service 0 5,391,086 5,391,086
Sunshine Coast Hospital and Health Service 49,834,559 3,130,880 52,965,439
Torres Strait - Northern Peninsula Hospital and Health Service 0 4,778,361 4,778,361
Townsville Hospital and Health Service 52,150,163 8,581,757 60,731,920
West Moreton Hospital and Health Service 27,072,480 11,466,827 38,539,307
Wide Bay Hospital and Health Service 33,315,214 3,622,087 36,937,301
Total 715,335,840 101,633,427 816,969,267

See explanatory notes below table 4b.

Table 4b – NHR contributions by local hospital network YTD – Queensland, October 2013

This table shows YTD NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland as at October 2013.

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 149,087,670 21,836,444 170,924,114
Cape York Hospital and Health Service 0 7,087,450 7,087,450
Central Queensland Hospital and Health Service 83,216,043 24,377,346 107,593,389
Central West Hospital and Health Service 0 8,491,787 8,491,787
Children's Health Queensland Hospital and Health Service 65,767,000 6,859,132 72,626,132
Darling Downs Hospital and Health Service 92,168,688 54,729,038 146,897,726
Gold Coast Hospital and Health Service 247,240,428 11,683,755 258,924,183
Mackay Hospital and Health Service 65,644,795 13,012,442 78,657,237
Mater Misericordiae Health Service Brisbane 150,346,956 4,348,064 154,695,021
Metro North Hospital and Health Service 542,730,388 23,050,427 565,780,815
Metro South Hospital and Health Service 437,924,783 33,642,777 471,567,560
North West Hospital and Health Service 22,147,276 6,420,378 28,567,654
South West Hospital and Health Service 0 17,815,536 17,815,536
Sunshine Coast Hospital and Health Service 161,802,551 10,346,390 172,148,941
Torres Strait - Northern Peninsula Hospital and Health Service 0 15,790,707 15,790,707
Townsville Hospital and Health Service 169,998,703 28,359,532 198,358,235
West Moreton Hospital and Health Service 84,787,260 37,893,614 122,680,874
Wide Bay Hospital and Health Service 108,852,945 11,969,678 120,822,623
Total 2,381,715,486 337,714,497 2,719,429,983

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, October 2013

This table shows estimated state or territory hospital activity for activity-based funding services expressed as NWAU for October 2013, 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 7,025 28,100 84,298
Central Queensland Hospital and Health Service 3,745 14,980 44,940
Children's Health Queensland Hospital and Health Service 4,646 9,293 27,879
Darling Downs Hospital and Health Service 4,262 17,047 51,142
Gold Coast Hospital and Health Service 11,531 46,122 138,366
Mackay Hospital and Health Service 2,918 11,671 35,012
Mater Misericordiae Health Service Brisbane 6,564 26,258 78,775
Metro North Hospital and Health Service 22,879 91,518 274,553
Metro South Hospital and Health Service 20,050 80,201 240,604
North West Hospital and Health Service 1,060 4,240 12,720
Sunshine Coast Hospital and Health Service 7,527 30,110 90,330
Townsville Hospital and Health Service 7,423 29,691 89,073
West Moreton Hospital and Health Service 4,151 16,603 49,810
Wide Bay Hospital and Health Service 5,063 20,253 60,760
Total 108,844 426,087 1,278,262

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.