Queensland report, September 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 September 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, September 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 September 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, September 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 September 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
251,043,812 251,043,812 251,043,812
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
289,228,055 251,043,812 32,198,861 5,985,382 289,228,055
QLD
funding
442,468,515 629,728,684 0 0 629,728,684
Other state/territory funding 0 0 0 0
Total 731,696,570 880,772,496 32,198,861 5,985,382 0 918,956,738

See definitions and explanatory notes following table 1b.

Table 1b – State pool account transactions YTD – Queensland, September 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 September 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
735,384,642 735,384,642 735,384,642
Commonwealth
Block funding
96,596,582 96,596,582 96,596,582
Commonwealth
Other funding
17,956,147 17,956,147 17,956,147
Total C'wealth
funding
849,937,370 735,384,642 96,596,582 17,956,147 849,937,370
QLD
funding
1,381,564,726 1,381,424,630 0 0 1,381,424,630
Other state/territory funding 0 0 0 0
Total 2,231,502,097 2,116,809,272 96,596,582 17,956,147 0 2,231,362,000

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 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 September 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 77,282,853 112,244,431
Total 109,481,713 144,443,292 0 144,443,292

See explanatory notes following table 2b.

Table 2b – State managed fund transactions YTD – Queensland, September 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 September 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 96,596,582 96,596,582
State/territory Block funding 258,599,564 258,599,564
Total 355,196,145 355,196,145 0 355,196,145

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 2015

This table shows NHR funding and payments by service category on both a monthly and year-to-date (YTD) basis for Queensland for September 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 435,180,168 553,511,675 1,334,022,663 1,334,022,663
Admitted mental health 36,417,119 46,142,324 110,727,685 110,727,685
Sub-acute 36,250,234 46,057,106 111,005,409 111,005,409
Emergency department 100,352,901 126,819,012 301,395,862 301,395,862
Non-admitted 85,243,348 108,242,379 259,657,653 259,657,653
Total ABF (Pool) 693,443,770 880,772,496 2,116,809,272 2,116,809,272
Block
Small rural hospitals 54,970,376 71,999,447 182,740,373 182,734,475
Teaching, training & research 23,214,065 32,191,512 73,985,906 73,985,906
Non-admitted mental health 31,297,271 40,252,333 98,469,867 98,475,764
Other non-admitted services 0 0 0 0
Total Block (SMF) 109,481,713 144,443,292 355,196,145 355,196,145
Other
Public health funding 5,985,382 5,985,382 17,956,147 17,956,147
Overdeposit 0 0 0 0
Cross-border 0 0 0 0
Interest 68,558 0 140,097 0
Total Other (Pool) 6,053,940 5,985,382 18,096,243 17,956,147
Grand Total 808,979,423 1,031,201,170 2,490,101,660 2,489,961,564

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 2015

This table shows NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland during September 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 51,171,491 9,469,731 60,641,222
Central Queensland Hospital and Health Service 35,726,740 5,624,821 41,351,561
Central West Hospital and Health Service 0 2,849,738 2,849,738
Children's Health Queensland Hospital and Health Service 28,277,235 1,663,584 29,940,818
Darling Downs Hospital and Health Service 40,530,410 14,681,615 55,212,025
Gold Coast Hospital and Health Service 88,451,425 6,421,713 94,873,138
Mackay Hospital and Health Service 29,448,222 5,208,701 34,656,923
Mater Misericordiae Health Service Brisbane 43,267,936 1,812,539 45,080,475
Metro North Hospital and Health Service 190,938,421 15,409,467 206,347,888
Metro South Hospital and Health Service 157,039,228 18,746,341 175,785,569
North West Hospital and Health Service 12,148,710 2,975,782 15,124,491
South West Hospital and Health Service 0 6,909,298 6,909,298
Sunshine Coast Hospital and Health Service 69,692,620 4,816,440 74,509,060
Torres and Cape Hospital and Health Service 0 6,503,457 6,503,457
Townsville Hospital and Health Service 56,488,945 12,554,302 69,043,247
West Moreton Hospital and Health Service 36,398,096 10,939,539 47,337,635
Wide Bay Hospital and Health Service 36,866,224 17,674,971 54,541,195
Total 876,445,702 144,262,038 1,020,707,740

See explanatory notes below table 4b.

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

This table shows YTD NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland as at September 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 128,877,087 23,561,895 152,438,982
Central Queensland Hospital and Health Service 76,895,252 19,348,844 96,244,096
Central West Hospital and Health Service 0 7,530,320 7,530,320
Children's Health Queensland Hospital and Health Service 73,720,320 4,088,571 77,808,891
Darling Downs Hospital and Health Service 88,532,982 43,072,917 131,605,899
Gold Coast Hospital and Health Service 222,906,887 15,743,068 238,649,954
Mackay Hospital and Health Service 63,759,534 12,569,080 76,328,614
Mater Misericordiae Health Service Brisbane 107,418,741 4,348,267 111,767,008
Metro North Hospital and Health Service 455,096,304 36,823,931 491,920,234
Metro South Hospital and Health Service 394,288,563 46,397,799 440,686,362
North West Hospital and Health Service 22,993,609 7,446,673 30,440,282
South West Hospital and Health Service 0 17,341,099 17,341,099
Sunshine Coast Hospital and Health Service 157,049,293 12,122,333 169,171,625
Torres and Cape Hospital and Health Service 0 15,256,250 15,256,250
Townsville Hospital and Health Service 141,401,867 31,257,677 172,659,544
West Moreton Hospital and Health Service 80,092,380 29,658,264 109,750,644
Wide Bay Hospital and Health Service 93,034,580 28,194,332 121,228,912
Total 2,106,067,398 354,761,319 2,460,828,717

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 2015

This table shows estimated state or territory hospital activity for activity-based funding services expressed as NWAU for September 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 22,424 90,906
Central Queensland Hospital and Health Service 4,306 12,918 51,651
Children's Health Queensland Hospital and Health Service 4,801 14,402 56,546
Darling Downs Hospital and Health Service 5,194 15,582 61,497
Gold Coast Hospital and Health Service 13,536 40,608 160,975
Mackay Hospital and Health Service 3,167 9,501 37,974
Mater Misericordiae Health Service Brisbane 5,326 15,977 64,328
Metro North Hospital and Health Service 24,816 74,449 291,935
Metro South Hospital and Health Service 22,019 66,056 263,286
North West Hospital and Health Service 948 2,843 11,373
Sunshine Coast Hospital and Health Service 8,567 25,702 102,354
Townsville Hospital and Health Service 7,966 23,897 93,506
West Moreton Hospital and Health Service 4,598 13,795 54,785
Wide Bay Hospital and Health Service 5,309 15,928 63,384
Total 118,027 354,081 1,404,501

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.