Queensland report, October 2016

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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 2016 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 2016

For the basis of the Commonwealth contribution to NHR funding, see Basis of Commonwealth NHR funding, 2016-17.

The basis used to determine NHR payments to LHNs in Queensland for October 2016 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.

Where an HHS achieves activity above the NWAU target set through the Service Agreement the NHR growth NWAU value at the State price is paid to HHSs.

The remaining public hospitals, predominantly small regional and rural hospitals, and 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 for the actual expenditure for the service.

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.

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 2016

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 2016.

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
309,961,996 309,961,996 309,961,996
Commonwealth
Block funding
34,335,458 34,335,458 34,335,458
Commonwealth
Other funding
6,213,143 6,213,143 6,213,143
Total C'wealth
funding
350,510,597 309,961,996 34,335,458 6,213,143 350,510,597
QLD
funding
434,365,740 434,338,312 0 0 434,338,312
Other state/territory funding 0 0 0 0
Total 784,876,337 744,300,308 34,335,458 6,213,143 0 784,848,909

See definitions and explanatory notes following table 1b.

Table 1b – State pool account transactions YTD – Queensland, October 2016

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 2016.

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
1,193,481,789 1,193,481,789 1,193,481,789
Commonwealth
Block funding
137,341,834 137,341,834 137,341,834
Commonwealth
Other funding
24,852,571 24,852,571 24,852,571
Total C'wealth
funding
1,355,676,193 1,193,481,789 137,341,834 24,852,571 1,355,676,193
QLD
funding
1,797,627,610 1,797,501,193 0 0 1,797,501,193
Other state/territory funding 0 0 0 0
Total 3,153,303,803 2,990,982,981 137,341,834 24,852,571 0 3,153,177,386

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 2016

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 2016.

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 34,335,458 34,335,458
State/territory Block funding 69,882,369 69,882,369
Total 104,217,827 104,217,827 0 104,217,827

See explanatory notes following table 2b.

Table 2b – State managed fund transactions YTD – Queensland, October 2016

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 2016.

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 137,341,834 137,341,834
State/territory Block funding 314,464,818 314,464,818
Total 451,806,651 451,806,651 0 451,806,651

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 2016

This table shows NHR funding and payments by service category on both a monthly and year-to-date (YTD) basis for Queensland for October 2016. 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 469,939,383 469,939,383 1,888,466,790 1,888,466,790
Admitted mental health 39,798,953 39,798,953 160,056,977 160,056,977
Sub-acute 42,764,567 42,764,567 173,774,450 173,774,450
Emergency department 98,012,004 98,012,004 392,319,211 392,319,211
Non-admitted 93,785,401 93,785,401 376,365,553 376,365,553
Total ABF (Pool) 744,300,308 744,300,308 2,990,982,981 2,990,982,981
Block
Small rural hospitals 52,424,967 52,148,121 225,887,369 224,779,987
Teaching, training & research 23,183,329 23,183,329 102,514,426 102,514,426
Non-admitted mental health 28,001,778 28,330,899 120,801,418 122,117,901
Other non-admitted services 607,753 555,477 2,603,439 2,394,338
Total Block (SMF) 104,217,827 104,217,827 451,806,651 451,806,651
Other
Public health funding 6,213,143 6,213,143 24,852,571 24,852,571
Overdeposit 0 0 0 0
Cross-border 0 0 0 0
Interest 27,429 0 126,417 0
Total Other (Pool) 6,240,571 6,213,143 24,978,988 24,852,571
Grand Total 854,758,706 854,731,277 3,467,768,620 3,467,642,203

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 2016

This table shows NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland during October 2016.

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 60,886,321 6,691,906 67,578,226
Central Queensland Hospital and Health Service 27,945,325 5,988,960 33,934,285
Central West Hospital and Health Service 0 2,068,677 2,068,677
Children's Health Queensland Hospital and Health Service 50,080,666 1,396,431 51,477,097
Darling Downs Hospital and Health Service 27,724,690 12,244,466 39,969,155
Gold Coast Hospital and Health Service 80,681,318 5,752,485 86,433,802
Mackay Hospital and Health Service 17,908,887 4,082,572 21,991,459
Mater Misericordiae Health Service Brisbane 28,526,170 747,926 29,274,096
Metro North Hospital and Health Service 149,114,731 10,789,988 159,904,718
Metro South Hospital and Health Service 130,591,664 13,842,388 144,434,053
North West Hospital and Health Service 5,370,842 2,878,933 8,249,774
South West Hospital and Health Service 0 5,051,568 5,051,568
Sunshine Coast Hospital and Health Service 58,180,376 4,063,974 62,244,349
Torres and Cape Hospital and Health Service 0 5,349,876 5,349,876
Townsville Hospital and Health Service 45,918,071 9,459,275 55,377,346
West Moreton Hospital and Health Service 26,062,690 9,604,713 35,667,403
Wide Bay Hospital and Health Service 32,455,941 4,128,897 36,584,839
Total 741,447,691 104,143,034 845,590,725

See explanatory notes below table 4b.

Table 4b – NHR contributions by local hospital network YTD – Queensland, October 2016

This table shows YTD NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland as at October 2016.

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 194,387,463 29,016,485 223,403,948
Central Queensland Hospital and Health Service 104,833,848 25,898,711 130,732,559
Central West Hospital and Health Service 0 8,916,855 8,916,855
Children's Health Queensland Hospital and Health Service 161,865,597 6,128,806 167,994,403
Darling Downs Hospital and Health Service 115,478,863 52,874,222 168,353,085
Gold Coast Hospital and Health Service 325,915,549 25,109,883 351,025,432
Mackay Hospital and Health Service 74,477,828 17,669,533 92,147,361
Mater Misericordiae Health Service Brisbane 128,370,045 3,307,255 131,677,301
Metro North Hospital and Health Service 623,429,481 47,105,653 670,535,134
Metro South Hospital and Health Service 551,507,584 60,167,931 611,675,515
North West Hospital and Health Service 23,407,004 12,426,797 35,833,801
South West Hospital and Health Service 0 21,774,350 21,774,350
Sunshine Coast Hospital and Health Service 241,228,883 17,663,075 258,891,958
Torres and Cape Hospital and Health Service 0 23,060,181 23,060,181
Townsville Hospital and Health Service 192,348,518 40,966,837 233,315,355
West Moreton Hospital and Health Service 104,365,355 41,490,971 145,856,326
Wide Bay Hospital and Health Service 136,529,959 17,898,380 154,428,340
Total 2,978,145,977 451,475,926 3,429,621,903

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 2016

This table shows estimated state or territory hospital activity for activity-based funding services expressed as NWAU for October 2016, 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 2016-17
Cairns and Hinterland Hospital and Health Service 8,168 32,674 98,022
Central Queensland Hospital and Health Service 4,520 18,079 54,237
Children's Health Queensland Hospital and Health Service 5,565 22,262 66,786
Darling Downs Hospital and Health Service 5,351 21,402 64,207
Gold Coast Hospital and Health Service 14,901 59,604 178,813
Mackay Hospital and Health Service 3,429 13,717 41,152
Mater Misericordiae Health Service Brisbane 5,743 22,971 68,757
Metro North Hospital and Health Service 26,904 107,617 322,851
Metro South Hospital and Health Service 23,771 95,082 285,247
North West Hospital and Health Service 953 3,812 11,436
Sunshine Coast Hospital and Health Service 10,153 40,612 121,837
Townsville Hospital and Health Service 8,507 34,027 102,081
West Moreton Hospital and Health Service 4,993 19,971 59,913
Wide Bay Hospital and Health Service 5,978 23,912 71,736
Total 128,936 515,743 1,547,075

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.