Queensland report, September 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 September 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, September 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 September 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, September 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 September 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
212,881,994 212,881,994 212,881,994
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
251,452,852 212,881,994 32,857,533 5,713,325 251,452,852
QLD
funding
619,833,815 619,795,932 0 0 619,795,932
Other state/territory funding 0 0 0 0
Total 871,286,667 832,677,926 32,857,533 5,713,325 0 871,248,784

See definitions and explanatory notes following table 1b.

Table 1b – State pool account transactions YTD – Queensland, September 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 September 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
638,645,982 638,645,982 638,645,982
Commonwealth
Block funding
98,572,600 98,572,600 98,572,600
Commonwealth
Other funding
17,139,975 17,139,975 17,139,975
Total C'wealth
funding
754,358,557 638,645,982 98,572,600 17,139,975 754,358,557
QLD
funding
1,334,619,895 1,334,504,209 0 0 1,334,504,209
Other state/territory funding 0 0 0 0
Total 2,088,978,452 1,973,150,190 98,572,600 17,139,975 0 2,088,862,766

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, September 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 September 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 140,678,594 140,678,594
Total 173,536,128 173,536,128 0 173,536,128

See explanatory notes following table 2b.

Table 2b – State managed fund transactions YTD – Queensland, September 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 September 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 98,572,600 98,572,600
State/territory Block funding 232,483,347 232,483,347
Total 331,055,947 331,055,947 0 331,055,947

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 2014

This table shows NHR funding and payments by service category on both a monthly and year-to-date (YTD) basis for Queensland for September 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 527,367,519 527,367,519 1,251,311,543 1,251,311,543
Admitted mental health 40,565,786 40,565,786 96,609,060 96,609,060
Sub-acute 43,257,024 43,257,024 102,605,914 102,605,914
Emergency department 120,155,332 120,155,332 283,359,048 283,359,048
Non-admitted 101,332,265 101,332,265 239,264,626 239,264,626
Total ABF (Pool) 832,677,926 832,677,926 1,973,150,190 1,973,150,190
Block
Small rural hospitals 84,246,697 84,536,816 186,050,737 186,846,712
Teaching, training & research 43,866,818 43,827,268 53,678,300 53,638,750
Non-admitted mental health 44,228,572 44,051,271 88,804,798 88,268,179
Other non-admitted services 1,194,041 1,120,772 2,522,111 2,302,305
Total Block (SMF) 173,536,128 173,536,128 331,055,947 331,055,947
Other
Public health funding 5,713,325 5,713,325 17,139,975 17,139,975
Overdeposit 0 0 0 0
Cross-border 0 0 0 0
Interest 37,883 0 115,686 0
Total Other (Pool) 5,751,208 5,713,325 17,255,662 17,139,975
Grand Total 1,011,965,262 1,011,927,379 2,321,461,799 2,321,346,112

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, September 2014

This table shows NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland during September 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 53,072,189 13,158,206 66,230,395
Central Queensland Hospital and Health Service 28,624,014 11,607,304 40,231,317
Central West Hospital and Health Service 0 3,816,989 3,816,989
Children's Health Queensland Hospital and Health Service 21,473,410 2,398,019 23,871,429
Darling Downs Hospital and Health Service 34,953,927 21,832,488 56,786,415
Gold Coast Hospital and Health Service 72,820,746 3,433,894 76,254,640
Mackay Hospital and Health Service 25,089,551 6,265,813 31,355,364
Mater Misericordiae Health Service Brisbane 56,269,740 1,417,638 57,687,378
Metro North Hospital and Health Service 167,622,999 25,557,726 193,180,725
Metro South Hospital and Health Service 175,274,846 30,255,527 205,530,373
North West Hospital and Health Service 7,547,558 4,431,894 11,979,451
South West Hospital and Health Service 0 8,921,484 8,921,484
Sunshine Coast Hospital and Health Service 66,946,336 7,564,673 74,511,009
Torres and Cape Hospital and Health Service 0 4,130,267 4,130,267
Townsville Hospital and Health Service 53,526,943 8,309,587 61,836,530
West Moreton Hospital and Health Service 24,650,692 11,587,870 36,238,562
Wide Bay Hospital and Health Service 39,178,002 8,704,987 47,882,988
Total 827,050,952 173,394,364 1,000,445,316

See explanatory notes below table 4b.

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

This table shows YTD NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland as at September 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 124,378,927 23,550,725 147,929,652
Central Queensland Hospital and Health Service 67,734,399 22,874,686 90,609,084
Central West Hospital and Health Service 0 7,773,349 7,773,349
Children's Health Queensland Hospital and Health Service 54,808,285 5,799,945 60,608,231
Darling Downs Hospital and Health Service 77,494,598 47,230,736 124,725,333
Gold Coast Hospital and Health Service 185,539,243 8,756,354 194,295,597
Mackay Hospital and Health Service 56,167,189 12,292,116 68,459,305
Mater Misericordiae Health Service Brisbane 133,703,484 3,407,552 137,111,035
Metro North Hospital and Health Service 428,232,044 36,101,507 464,333,551
Metro South Hospital and Health Service 385,045,499 46,389,073 431,434,572
North West Hospital and Health Service 17,123,602 7,440,834 24,564,436
South West Hospital and Health Service 0 17,324,769 17,324,769
Sunshine Coast Hospital and Health Service 142,016,449 12,264,593 154,281,042
Torres and Cape Hospital and Health Service 0 14,674,415 14,674,415
Townsville Hospital and Health Service 134,004,820 21,399,442 155,404,261
West Moreton Hospital and Health Service 63,014,779 29,194,047 92,208,826
Wide Bay Hospital and Health Service 90,516,525 14,241,049 104,757,574
Total 1,959,779,842 330,715,191 2,290,495,033

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 2014

This table shows estimated state or territory hospital activity for activity-based funding services expressed as NWAU for September 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 22,057 88,604
Central Queensland Hospital and Health Service 3,869 11,607 45,922
Children's Health Queensland Hospital and Health Service 3,816 11,448 45,477
Darling Downs Hospital and Health Service 4,833 14,499 57,997
Gold Coast Hospital and Health Service 12,225 36,675 146,698
Mackay Hospital and Health Service 3,250 9,749 38,995
Mater Misericordiae Health Service Brisbane 5,939 17,818 71,387
Metro North Hospital and Health Service 23,974 71,921 284,073
Metro South Hospital and Health Service 21,679 65,038 254,643
North West Hospital and Health Service 966 2,897 11,586
Sunshine Coast Hospital and Health Service 8,375 25,124 100,421
Townsville Hospital and Health Service 7,424 22,271 89,082
West Moreton Hospital and Health Service 4,350 13,051 52,202
Wide Bay Hospital and Health Service 5,425 16,275 64,898
Total 113,476 340,428 1,351,985

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.