Queensland report, October 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 October 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, October 2015

For the basis of the Commonwealth contribution to NHR funding, see Basis of Commonwealth NHR funding, 2015-16.

The basis used to determine NHR payments to LHNs in Queensland for October 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:

35 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.

83 public hospitals, predominantly small regional and rural hospitals, and 4 specialist mental health facilities 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.

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 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 October 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
253,981,108 253,981,108 253,981,108
Commonwealth
Block funding
32,198,861 32,198,861 32,198,861
Commonwealth
Other funding
5,985,382 5,985,382 5,985,382
Total C'wealth
funding
292,165,351 253,981,108 32,198,861 5,985,382 292,165,351
QLD
funding
475,227,757 466,291,441 0 8,900,000 475,191,441
Other state/territory funding 12,800,000 0 12,800,000 12,800,000
Total 780,193,108 720,272,549 32,198,861 18,785,382 8,900,000 780,156,792

See definitions and explanatory notes following table 1b.

Table 1b – State pool account transactions YTD – Queensland, October 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 October 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
989,365,750 989,365,750 989,365,750
Commonwealth
Block funding
128,795,442 128,795,442 128,795,442
Commonwealth
Other funding
23,941,529 23,941,529 23,941,529
Total C'wealth
funding
1,142,102,721 989,365,750 128,795,442 23,941,529 1,142,102,721
QLD
funding
1,856,792,483 1,847,716,070 0 8,900,000 1,856,616,070
Other state/territory funding 12,800,000 0 12,800,000 12,800,000
Total 3,011,695,204 2,837,081,820 128,795,442 36,741,529 8,900,000 3,011,518,792

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 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 October 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 32,198,861 32,198,861
State/territory Block funding 70,485,762 70,485,762
Total 102,684,622 102,684,622 0 102,684,622

See explanatory notes following table 2b.

Table 2b – State managed fund transactions YTD – Queensland, October 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 October 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 128,795,442 128,795,442
State/territory Block funding 329,085,326 329,085,326
Total 457,880,768 457,880,768 0 457,880,768

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 2015

This table shows NHR funding and payments by service category on both a monthly and year-to-date (YTD) basis for Queensland for October 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 459,006,506 459,006,506 1,793,029,169 1,793,029,169
Admitted mental health 37,472,696 37,472,696 148,200,382 148,200,382
Sub-acute 36,168,109 36,168,109 147,173,518 147,173,518
Emergency department 100,471,747 100,471,747 401,867,609 401,867,609
Non-admitted 87,153,490 87,153,490 346,811,142 346,811,142
Total ABF (Pool) 720,272,549 720,272,549 2,837,081,820 2,837,081,820
Block
Small rural hospitals 48,928,989 48,875,311 231,669,362 231,609,787
Teaching, training & research 28,890,003 28,890,003 102,875,908 102,875,908
Non-admitted mental health 24,865,631 24,919,308 123,335,498 123,395,073
Other non-admitted services 0 0 0 0
Total Block (SMF) 102,684,622 102,684,622 457,880,768 457,880,768
Other
Public health funding 5,985,382 5,985,382 23,941,529 23,941,529
Overdeposit 0 0 0 0
Cross-border 21,700,000 21,700,000 21,700,000 21,700,000
Interest 36,316 0 176,412 0
Total Other (Pool) 27,721,698 27,685,382 45,817,942 45,641,529
Grand Total 850,678,869 850,642,553 3,340,780,530 3,340,604,117

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 2015

This table shows NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland during October 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 44,926,390 5,177,128 50,103,518
Central Queensland Hospital and Health Service 21,910,457 5,457,019 27,367,476
Central West Hospital and Health Service 0 2,316,763 2,316,763
Children's Health Queensland Hospital and Health Service 53,550,801 2,572,108 56,122,909
Darling Downs Hospital and Health Service 25,616,433 12,732,057 38,348,490
Gold Coast Hospital and Health Service 117,642,122 6,513,703 124,155,826
Mackay Hospital and Health Service 17,393,776 3,914,333 21,308,109
Mater Misericordiae Health Service Brisbane 33,352,665 1,172,062 34,524,727
Metro North Hospital and Health Service 141,077,148 11,121,186 152,198,334
Metro South Hospital and Health Service 120,739,871 11,409,345 132,149,216
North West Hospital and Health Service 2,247,904 2,378,558 4,626,462
South West Hospital and Health Service 0 4,560,901 4,560,901
Sunshine Coast Hospital and Health Service 44,816,832 3,623,832 48,440,664
Torres and Cape Hospital and Health Service 0 4,869,233 4,869,233
Townsville Hospital and Health Service 42,607,012 9,462,445 52,069,458
West Moreton Hospital and Health Service 23,166,462 8,938,218 32,104,680
Wide Bay Hospital and Health Service 27,889,408 6,348,525 34,237,932
Total 716,937,282 102,567,416 819,504,698

See explanatory notes below table 4b.

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

This table shows YTD NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland as at October 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 173,803,478 28,739,023 202,542,501
Central Queensland Hospital and Health Service 98,805,709 24,805,863 123,611,572
Central West Hospital and Health Service 0 9,847,083 9,847,083
Children's Health Queensland Hospital and Health Service 127,271,121 6,660,678 133,931,800
Darling Downs Hospital and Health Service 114,149,415 55,804,974 169,954,389
Gold Coast Hospital and Health Service 340,549,009 22,256,771 362,805,780
Mackay Hospital and Health Service 81,153,310 16,483,413 97,636,723
Mater Misericordiae Health Service Brisbane 140,771,406 5,520,329 146,291,735
Metro North Hospital and Health Service 596,173,452 47,945,117 644,118,568
Metro South Hospital and Health Service 515,028,434 57,807,143 572,835,578
North West Hospital and Health Service 25,241,513 9,825,231 35,066,744
South West Hospital and Health Service 0 21,902,000 21,902,000
Sunshine Coast Hospital and Health Service 201,866,125 15,746,165 217,612,290
Torres and Cape Hospital and Health Service 0 20,125,483 20,125,483
Townsville Hospital and Health Service 184,008,879 40,720,123 224,729,002
West Moreton Hospital and Health Service 103,258,842 38,596,482 141,855,324
Wide Bay Hospital and Health Service 120,923,988 34,542,856 155,466,844
Total 2,823,004,680 457,328,735 3,280,333,416

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 2015

This table shows estimated state or territory hospital activity for activity-based funding services expressed as NWAU for October 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 2015-16
Cairns and Hinterland Hospital and Health Service 7,475 29,898 89,694
Central Queensland Hospital and Health Service 4,306 17,224 51,673
Children's Health Queensland Hospital and Health Service 4,801 19,202 57,608
Darling Downs Hospital and Health Service 5,194 20,776 62,329
Gold Coast Hospital and Health Service 13,536 54,144 162,432
Mackay Hospital and Health Service 3,167 12,668 38,005
Mater Misericordiae Health Service Brisbane 5,326 21,302 63,907
Metro North Hospital and Health Service 24,816 99,265 297,794
Metro South Hospital and Health Service 22,019 88,075 264,223
North West Hospital and Health Service 948 3,791 11,372
Sunshine Coast Hospital and Health Service 8,567 34,269 102,807
Townsville Hospital and Health Service 7,966 31,862 95,587
West Moreton Hospital and Health Service 4,598 18,393 55,181
Wide Bay Hospital and Health Service 5,309 21,238 63,712
Total 118,027 472,108 1,416,323

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.