Queensland report, September 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 September 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, September 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 September 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, September 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 September 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
392,327,328 392,292,038 0 0 392,292,038
Other state/territory funding 0 0 0 0
Total 742,837,925 702,254,034 34,335,458 6,213,143 0 742,802,635

See definitions and explanatory notes following table 1b.

Table 1b – State pool account transactions YTD – Queensland, September 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 September 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
883,519,793 883,519,793 883,519,793
Commonwealth
Block funding
103,006,375 103,006,375 103,006,375
Commonwealth
Other funding
18,639,428 18,639,428 18,639,428
Total C'wealth
funding
1,005,165,596 883,519,793 103,006,375 18,639,428 1,005,165,596
QLD
funding
1,363,261,869 1,363,162,881 0 0 1,363,162,881
Other state/territory funding 0 0 0 0
Total 2,368,427,465 2,246,682,674 103,006,375 18,639,428 0 2,368,328,477

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 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 September 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, September 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 September 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 103,006,375 103,006,375
State/territory Block funding 244,582,449 244,582,449
Total 347,588,824 347,588,824 0 347,588,824

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 2016

This table shows NHR funding and payments by service category on both a monthly and year-to-date (YTD) basis for Queensland for September 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 443,924,337 443,924,337 1,418,527,407 1,418,527,407
Admitted mental health 37,451,528 37,451,528 120,258,024 120,258,024
Sub-acute 40,765,021 40,765,021 131,009,883 131,009,883
Emergency department 91,734,574 91,734,574 294,307,208 294,307,208
Non-admitted 88,378,574 88,378,574 282,580,152 282,580,152
Total ABF (Pool) 702,254,034 702,254,034 2,246,682,674 2,246,682,674
Block
Small rural hospitals 52,424,967 52,148,121 173,462,402 172,631,866
Teaching, training & research 23,183,329 23,183,329 79,331,097 79,331,097
Non-admitted mental health 28,001,778 28,330,899 92,799,639 93,787,002
Other non-admitted services 607,753 555,477 1,995,686 1,838,860
Total Block (SMF) 104,217,827 104,217,827 347,588,824 347,588,824
Other
Public health funding 6,213,143 6,213,143 18,639,428 18,639,428
Overdeposit 0 0 0
Cross-border 0 0 0 0
Interest 35,290 0 98,988 0
Total Other (Pool) 6,248,432 6,213,143 18,738,416 18,639,428
Grand Total 812,720,293 812,685,004 2,613,009,914 2,612,910,926

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 2016

This table shows NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland during September 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 42,003,596 6,691,906 48,695,501
Central Queensland Hospital and Health Service 23,484,532 5,988,960 29,473,492
Central West Hospital and Health Service 0 2,068,677 2,068,677
Children's Health Queensland Hospital and Health Service 35,269,307 1,396,431 36,665,738
Darling Downs Hospital and Health Service 27,724,689 12,244,466 39,969,155
Gold Coast Hospital and Health Service 76,916,556 5,752,485 82,669,041
Mackay Hospital and Health Service 17,908,887 4,082,572 21,991,459
Mater Misericordiae Health Service Brisbane 33,871,105 747,926 34,619,031
Metro North Hospital and Health Service 147,579,428 10,789,988 158,369,415
Metro South Hospital and Health Service 129,278,156 13,842,388 143,120,544
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 56,923,585 4,063,974 60,987,559
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 24,162,229 9,604,713 33,766,942
Wide Bay Hospital and Health Service 32,455,941 4,128,897 36,584,839
Total 698,866,924 104,143,034 803,009,958

See explanatory notes below table 4b.

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

This table shows YTD NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland as at September 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 133,501,142 22,324,580 155,825,722
Central Queensland Hospital and Health Service 76,888,524 19,909,750 96,798,274
Central West Hospital and Health Service 0 6,848,178 6,848,178
Children's Health Queensland Hospital and Health Service 111,784,930 4,732,375 116,517,306
Darling Downs Hospital and Health Service 87,754,173 40,629,757 128,383,930
Gold Coast Hospital and Health Service 245,234,231 19,357,399 264,591,630
Mackay Hospital and Health Service 56,568,941 13,586,961 70,155,902
Mater Misericordiae Health Service Brisbane 99,843,875 2,559,329 102,403,205
Metro North Hospital and Health Service 474,314,750 36,315,666 510,630,416
Metro South Hospital and Health Service 420,915,920 46,325,542 467,241,462
North West Hospital and Health Service 18,036,163 9,547,865 27,584,027
South West Hospital and Health Service 0 16,722,782 16,722,782
Sunshine Coast Hospital and Health Service 183,048,507 13,599,101 196,647,608
Torres and Cape Hospital and Health Service 0 17,710,305 17,710,305
Townsville Hospital and Health Service 146,430,447 31,507,562 177,938,009
West Moreton Hospital and Health Service 78,302,665 31,886,258 110,188,923
Wide Bay Hospital and Health Service 104,074,018 13,769,483 117,843,501
Total 2,236,698,286 347,332,891 2,584,031,178

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 2016

This table shows estimated state or territory hospital activity for activity-based funding services expressed as NWAU for September 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 24,505 98,022
Central Queensland Hospital and Health Service 4,520 13,559 54,237
Children's Health Queensland Hospital and Health Service 5,565 16,696 66,786
Darling Downs Hospital and Health Service 5,351 16,052 64,207
Gold Coast Hospital and Health Service 14,901 44,703 178,813
Mackay Hospital and Health Service 3,429 10,288 41,152
Mater Misericordiae Health Service Brisbane 5,743 17,228 68,757
Metro North Hospital and Health Service 26,904 80,713 322,851
Metro South Hospital and Health Service 23,771 71,312 285,247
North West Hospital and Health Service 953 2,859 11,436
Sunshine Coast Hospital and Health Service 10,153 30,459 121,837
Townsville Hospital and Health Service 8,507 25,520 102,081
West Moreton Hospital and Health Service 4,993 14,978 59,913
Wide Bay Hospital and Health Service 5,978 17,934 71,736
Total 128,936 386,807 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.