Queensland report, September 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 September 2012 as part of the National Health Reform Agreement.

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

Table 1a – State pool account transactions – Queensland, September 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
180,799,654 181,434,631 181,434,631
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
227,980,568 181,434,631 41,897,000 5,275,343 228,606,974
Total state/territory
funding
462,179,622 316,572,255 0 316,572,255
Grand Total 690,160,190 498,006,885 41,897,000 5,275,343 545,179,228

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 September 2012.

Table 1b – State pool account transactions YTD – Queensland, September 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
542,398,961 542,989,857 542,989,857
Commonwealth
Block funding
125,716,714 125,699,583 125,699,583
Commonwealth
Other funding
15,826,029 15,826,029 15,826,029
Total Commonwealth
funding
683,941,704 542,989,857 125,699,583 15,826,029 684,515,469
Total state/territory
funding
1,101,226,617 953,092,026 0 953,092,026
Grand Total 1,785,168,322 1,496,081,883 125,699,583 15,826,029 1,637,607,495

Note: Of the total year-to-date amount of $1,785,168,322 shown in Table 1b as paid into the Queensland state pool account, $571,873,764 are notional year-to-date payments.

Note: Of the total year-to-date amount of $1,637,607,495 shown in Table 1b as paid out of the Queensland state pool account, $566,142,926 are notional year-to-date payments.

All notional payments were 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 September 2012, and may include notional payments.

Table 2a – State managed fund transactions – Queensland, September 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 41,897,000
State/territory Block funding 126,191,023 84,239,046
Total 168,088,023 126,136,046 0 126,136,046

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 September 2012. These amounts may include notional payments.

Table 2b – State managed fund transactions YTD – Queensland, September 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 125,699,583 125,699,583
State/territory Block funding 295,012,158 252,838,468
Total 420,711,741 378,538,051 0 378,538,051

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 September 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, September 2012

Service category NHR funding NHR payments NHR funding
YTD
NHR payments
YTD
($) ($) ($) ($)
ABF
Acute admitted - public 432,922,903 335,383,810 1,105,935,545 1,006,624,194
Acute admitted - private 33,552,547 25,953,467 86,138,158 78,439,991
Non-admitted 100,472,361 77,826,794 256,865,755 233,873,201
Emergency department 76,031,465 58,842,814 194,686,120 177,144,497
Total ABF (Pool) 642,979,276 498,006,885 1,643,625,579 1,496,081,883
Block
Mental health 23,855,067 17,623,127 59,472,403 52,870,552
Small rural & metro hospitals 70,780,913 50,156,170 174,995,802 150,481,645
Sub-acute 41,206,817 31,487,466 103,376,907 94,081,216
Teaching, training & research 32,253,798 26,869,283 82,875,183 81,104,638
Other 0 0 0 0
Total Block (SMF) 168,096,595 126,136,046 420,720,296 378,538,051
Other
Public health funding 5,275,343 5,275,343 15,826,029 15,826,029
Overdeposit 0 0 0 0
Cross border 0 0 0 0
Interest 48,536 0 48,536 0
Total Other (Pool) 5,323,879 5,275,343 15,874,565 15,826,029
Grand Total 816,399,749 629,418,275 2,080,220,439 1,890,445,963

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 September 2012.

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

Table 4 – NHR payment distribution by LHN – Queensland, September 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 29,752,000 7,000,000 36,752,000
Cape York Hospital and Health Service 0 3,188,000 3,188,000
Central Queensland Hospital and Health Service 15,951,000 8,588,000 24,539,000
Central West Hospital and Health Service 0 2,482,000 2,482,000
Children's Health Queensland Hospital and Health Service 15,688,000 2,466,000 18,154,000
Darling Downs Hospital and Health Service 15,421,000 16,379,000 31,800,000
Gold Coast Hospital and Health Service 45,682,000 7,170,000 52,852,000
Mackay Hospital and Health Service 12,533,000 6,016,000 18,549,000
Mater Misericordiae Health Service Brisbane 35,495,350 1,299,133 36,794,483
Metro North Hospital and Health Service 118,887,000 15,510,000 134,397,000
Metro South Hospital and Health Service 95,112,000 15,075,000 110,187,000
North West Hospital and Health Service 4,585,000 2,379,000 6,964,000
South West Hospital and Health Service 0 4,672,000 4,672,000
Sunshine Coast Hospital and Health Service 31,854,000 4,603,000 36,457,000
Torres Strait - Northern Peninsula Hospital and Health Service 0 4,914,000 4,914,000
Townsville Hospital and Health Service 34,368,000 10,296,000 44,664,000
West Moreton Hospital and Health Service 16,110,000 8,759,000 24,869,000
Wide Bay Hospital and Health Service 23,019,000 5,210,000 28,229,000
Total 494,457,350 126,006,133 620,463,483

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 September 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, September 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 19,221 76,884
Central Queensland Hospital and Health Service 3,477 10,430 41,719
Children's Health Queensland Hospital and Health Service 3,384 10,152 40,610
Darling Downs Hospital and Health Service 3,318 9,955 39,819
Gold Coast Hospital and Health Service 9,625 28,874 115,494
Mackay Hospital and Health Service 2,726 8,178 32,712
Mater Misericordiae Health Service Brisbane 6,454 19,363 77,454
Metro North Hospital and Health Service 25,525 76,574 306,297
Metro South Hospital and Health Service 20,374 61,121 244,483
North West Hospital and Health Service 1,003 3,008 12,033
Sunshine Coast Hospital and Health Service 6,883 20,650 82,602
Townsville Hospital and Health Service 7,455 22,364 89,457
West Moreton Hospital and Health Service 3,512 10,536 42,142
Wide Bay Hospital and Health Service 5,013 15,038 60,150
Total 105,155 315,464 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.