Queensland report, September 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 September 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, September 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 September 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, September 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 September 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
537,140,069 363,915,246 0 0 363,915,246
Other state/territory funding 0 0
Total 774,405,381 564,566,675 31,131,216 5,482,668 0 601,180,559

See definitions and explanatory notes following table 1b.

Table 1b – State pool account transactions YTD – Queensland, September 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 September 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
601,894,664 601,894,664 601,894,664
Commonwealth
Block funding
93,384,399 93,384,399 93,384,399
Commonwealth
Other funding
16,448,004 16,448,004 16,448,004
Total C'wealth
funding
711,727,066 601,894,664 93,384,399 16,448,004 711,727,066
QLD
funding
1,249,047,968 1,075,761,004 0 0 1,075,761,004
Other state/territory funding 0 0
Total 1,960,775,034 1,677,655,668 93,384,399 16,448,004 0 1,787,488,070

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, September 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 September 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 70,211,958 46,495,372
Total 101,343,174 77,626,588 0 77,626,588

See explanatory notes following table 2b.

Table 2b – State managed fund transactions YTD – Queensland, September 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 September 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 93,384,399 93,384,399
State/territory Block funding 167,082,728 143,056,018
Total 260,467,126 236,440,416 0 236,440,416

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, September 2013

This table shows NHR funding and payments by service category on both a monthly and year-to-date (YTD) basis for Queensland for September 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 427,161,183 327,362,492 1,071,988,374 972,308,227
Acute admitted - private 35,691,090 27,209,464 89,291,498 81,053,236
Non-admitted 94,880,856 72,628,858 238,076,866 215,617,129
Emergency department 100,550,583 76,833,030 252,208,234 228,474,359
Admitted mental health 39,233,636 29,916,188 98,348,960 89,072,593
Sub-acute 40,196,374 30,616,644 100,769,501 91,130,124
Total ABF (Pool) 737,713,722 564,566,675 1,850,683,432 1,677,655,668
Block
Non-admitted mental health 31,400,670 23,357,370 79,489,940 71,353,396
Small rural hospitals 63,798,006 49,013,929 161,799,122 147,028,107
Teaching, training & research 5,291,486 4,600,189 17,014,574 16,093,810
Other non-admitted services 853,012 655,100 2,163,491 1,965,103
Total Block (SMF) 101,343,174 77,626,588 260,467,126 236,440,416
Other
Public health funding 5,482,668 5,482,668 16,448,004 16,448,004
Overdeposit 0 0 0 0
Cross-border 0 0 0 0
Interest 77,775 0 259,200 0
Total Other (Pool) 5,560,443 5,482,668 16,707,204 16,448,004
Grand Total 844,617,339 647,675,931 2,127,857,762 1,930,544,088

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, September 2013

This table shows NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland during September 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 34,786,042 5,076,170 39,862,212
Cape York Hospital and Health Service 0 1,647,741 1,647,741
Central Queensland Hospital and Health Service 19,306,250 5,667,434 24,973,684
Central West Hospital and Health Service 0 1,974,234 1,974,234
Children's Health Queensland Hospital and Health Service 16,226,033 1,594,666 17,820,699
Darling Downs Hospital and Health Service 21,307,592 12,723,826 34,031,418
Gold Coast Hospital and Health Service 57,526,276 2,716,333 60,242,609
Mackay Hospital and Health Service 15,351,263 3,025,234 18,376,497
Mater Misericordiae Health Service Brisbane 38,882,336 112,302 38,994,638
Metro North Hospital and Health Service 127,622,925 5,358,939 132,981,864
Metro South Hospital and Health Service 102,063,014 7,821,532 109,884,546
North West Hospital and Health Service 5,213,313 1,492,666 6,705,979
South West Hospital and Health Service 0 4,141,884 4,141,884
Sunshine Coast Hospital and Health Service 37,781,520 2,405,408 40,186,928
Torres Strait - Northern Peninsula Hospital and Health Service 0 3,671,146 3,671,146
Townsville Hospital and Health Service 39,282,842 6,593,245 45,876,087
West Moreton Hospital and Health Service 19,861,638 8,809,797 28,671,435
Wide Bay Hospital and Health Service 25,467,397 2,782,801 28,250,198
Total 560,678,441 77,615,358 638,293,799

See explanatory notes below table 4b.

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

This table shows YTD NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland as at September 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 102,533,086 15,228,396 117,761,482
Cape York Hospital and Health Service 0 4,942,749 4,942,749
Central Queensland Hospital and Health Service 57,816,434 17,000,628 74,817,062
Central West Hospital and Health Service 0 5,922,124 5,922,124
Children's Health Queensland Hospital and Health Service 48,678,094 4,783,518 53,461,612
Darling Downs Hospital and Health Service 63,048,486 38,167,714 101,216,200
Gold Coast Hospital and Health Service 170,073,450 8,148,181 178,221,631
Mackay Hospital and Health Service 46,053,789 9,074,806 55,128,595
Mater Misericordiae Health Service Brisbane 112,760,216 3,593,462 116,353,678
Metro North Hospital and Health Service 382,868,787 16,075,235 398,944,022
Metro South Hospital and Health Service 304,154,624 23,462,270 327,616,894
North West Hospital and Health Service 15,323,637 4,477,528 19,801,165
South West Hospital and Health Service 0 12,424,450 12,424,450
Sunshine Coast Hospital and Health Service 111,967,992 7,215,510 119,183,502
Torres Strait - Northern Peninsula Hospital and Health Service 0 11,012,346 11,012,346
Townsville Hospital and Health Service 117,848,540 19,777,775 137,626,315
West Moreton Hospital and Health Service 57,714,780 26,426,787 84,141,567
Wide Bay Hospital and Health Service 75,537,731 8,347,591 83,885,322
Total 1,666,379,646 236,081,070 1,902,460,716

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, September 2013

This table shows estimated state or territory hospital activity for activity-based funding services expressed as NWAU for September 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 21,075 84,298
Central Queensland Hospital and Health Service 3,745 11,235 44,940
Children's Health Queensland Hospital and Health Service 0 4,646 27,879
Darling Downs Hospital and Health Service 4,262 12,785 51,142
Gold Coast Hospital and Health Service 11,531 34,592 138,366
Mackay Hospital and Health Service 2,918 8,753 35,012
Mater Misericordiae Health Service Brisbane 6,565 19,694 78,775
Metro North Hospital and Health Service 22,879 68,638 274,553
Metro South Hospital and Health Service 20,050 60,151 240,604
North West Hospital and Health Service 1,060 3,180 12,720
Sunshine Coast Hospital and Health Service 7,527 22,582 90,330
Townsville Hospital and Health Service 7,423 22,268 89,073
West Moreton Hospital and Health Service 4,151 12,452 49,810
Wide Bay Hospital and Health Service 5,063 15,190 60,760
Total 104,199 317,242 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.