Queensland report, October 2014

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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 2014 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 2014

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 October 2014 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, October 2014

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 2014.

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
215,317,500 215,317,500 215,317,500
Commonwealth
Block funding
32,857,533 32,857,533 32,857,533
Commonwealth
Other funding
5,713,325 5,713,325 5,713,325
Total C'wealth
funding
253,888,359 215,317,500 32,857,533 5,713,325 253,888,359
QLD
funding
428,389,072 428,334,093 0 0 428,334,093
Other state/territory funding 0 0 0 0
Total 682,277,431 643,651,593 32,857,533 5,713,325 0 682,222,451

See definitions and explanatory notes following table 1b.

Table 1b – State pool account transactions YTD – Queensland, October 2014

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 2014.

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
853,963,482 853,963,482 853,963,482
Commonwealth
Block funding
131,430,133 131,430,133 131,430,133
Commonwealth
Other funding
22,853,301 22,853,301 22,853,301
Total C'wealth
funding
1,008,246,916 853,963,482 131,430,133 22,853,301 1,008,246,916
QLD
funding
1,763,008,967 1,762,838,301 0 0 1,762,838,301
Other state/territory funding 0 0 0 0
Total 2,771,255,883 2,616,801,783 131,430,133 22,853,301 0 2,771,085,217

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, October 2014

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 2014.

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 32,857,533 32,857,533
State/territory Block funding 83,909,823 83,909,823
Total 116,767,357 116,767,357 0 116,767,357

See explanatory notes following table 2b.

Table 2b – State managed fund transactions YTD – Queensland, October 2014

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 October 2014.

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 131,430,133 131,430,133
State/territory Block funding 316,393,170 316,393,170
Total 447,823,303 447,823,303 0 447,823,303

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 2014

This table shows NHR funding and payments by service category on both a monthly and year-to-date (YTD) basis for Queensland for October 2014. 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 410,951,279 410,951,279 1,662,262,821 1,662,262,821
Admitted mental health 30,872,821 30,872,821 127,481,880 127,481,880
Sub-acute 32,609,998 32,609,998 135,215,912 135,215,912
Emergency department 92,100,416 92,100,416 375,459,464 375,459,464
Non-admitted 77,117,080 77,117,080 316,381,706 316,381,706
Total ABF (Pool) 643,651,593 643,651,593 2,616,801,783 2,616,801,783
Block
Small rural hospitals 60,221,499 60,474,427 246,272,237 247,321,139
Teaching, training & research 27,233,413 27,248,373 80,911,714 80,887,123
Non-admitted mental health 28,792,172 28,597,553 117,596,970 116,865,732
Other non-admitted services 520,272 447,003 3,042,383 2,749,309
Total Block (SMF) 116,767,357 116,767,357 447,823,303 447,823,303
Other
Public health funding 5,713,325 5,713,325 22,853,301 22,853,301
Overdeposit 0 0 0 0
Cross-border 0 0 0 0
Interest 54,980 0 170,666 0
Total Other (Pool) 5,768,305 5,713,325 23,023,966 22,853,301
Grand Total 766,187,254 766,132,275 3,087,649,053 3,087,478,387

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, October 2014

This table shows NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland during October 2014.

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 38,179,343 7,049,806 45,229,149
Central Queensland Hospital and Health Service 20,226,844 6,867,141 27,093,985
Central West Hospital and Health Service 0 2,342,734 2,342,734
Children's Health Queensland Hospital and Health Service 46,871,104 2,172,107 49,043,211
Darling Downs Hospital and Health Service 23,568,071 14,208,504 37,776,575
Gold Coast Hospital and Health Service 61,740,426 4,658,930 66,399,355
Mackay Hospital and Health Service 16,867,312 3,682,344 20,549,655
Mater Misericordiae Health Service Brisbane 39,507,513 994,957 40,502,470
Metro North Hospital and Health Service 127,506,078 10,705,144 138,211,222
Metro South Hospital and Health Service 114,432,233 13,828,639 128,260,872
North West Hospital and Health Service 4,828,877 2,237,390 7,066,267
South West Hospital and Health Service 0 5,221,345 5,221,345
Sunshine Coast Hospital and Health Service 42,878,136 3,653,520 46,531,656
Torres and Cape Hospital and Health Service 0 4,242,882 4,242,882
Townsville Hospital and Health Service 47,785,642 19,199,286 66,984,928
West Moreton Hospital and Health Service 28,029,269 11,341,289 39,370,558
Wide Bay Hospital and Health Service 27,279,995 4,261,843 31,541,838
Total 639,700,842 116,667,861 756,368,703

See explanatory notes below table 4b.

Table 4b – NHR contributions by local hospital network YTD – Queensland, October 2014

This table shows YTD NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland as at October 2014.

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 162,558,270 30,600,531 193,158,801
Central Queensland Hospital and Health Service 87,961,242 29,741,827 117,703,069
Central West Hospital and Health Service 0 10,116,083 10,116,083
Children's Health Queensland Hospital and Health Service 101,679,389 7,972,052 109,651,442
Darling Downs Hospital and Health Service 101,062,669 61,439,239 162,501,908
Gold Coast Hospital and Health Service 247,279,668 13,415,284 260,694,952
Mackay Hospital and Health Service 73,034,501 15,974,460 89,008,960
Mater Misericordiae Health Service Brisbane 173,210,996 4,402,509 177,613,505
Metro North Hospital and Health Service 555,738,122 46,806,651 602,544,774
Metro South Hospital and Health Service 499,477,732 60,217,712 559,695,444
North West Hospital and Health Service 21,952,479 9,678,224 31,630,704
South West Hospital and Health Service 0 22,546,113 22,546,113
Sunshine Coast Hospital and Health Service 184,894,585 15,918,113 200,812,698
Torres and Cape Hospital and Health Service 0 18,917,297 18,917,297
Townsville Hospital and Health Service 181,790,462 40,598,728 222,389,189
West Moreton Hospital and Health Service 91,044,048 40,535,336 131,579,384
Wide Bay Hospital and Health Service 117,796,519 18,502,893 136,299,412
Total 2,599,480,684 447,383,052 3,046,863,736

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 2014

This table shows estimated state or territory hospital activity for activity-based funding services expressed as NWAU for October 2014, 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 7,352 29,410 88,229
Central Queensland Hospital and Health Service 3,869 15,476 46,428
Children's Health Queensland Hospital and Health Service 3,816 15,264 45,791
Darling Downs Hospital and Health Service 4,833 19,332 57,997
Gold Coast Hospital and Health Service 12,225 48,899 146,698
Mackay Hospital and Health Service 3,250 12,998 38,995
Mater Misericordiae Health Service Brisbane 5,939 23,758 71,273
Metro North Hospital and Health Service 23,974 95,894 287,682
Metro South Hospital and Health Service 21,679 86,718 260,153
North West Hospital and Health Service 966 3,862 11,586
Sunshine Coast Hospital and Health Service 8,375 33,499 100,497
Townsville Hospital and Health Service 7,424 29,694 89,082
West Moreton Hospital and Health Service 4,350 17,401 52,202
Wide Bay Hospital and Health Service 5,425 21,700 65,099
Total 113,476 453,905 1,361,714

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.