To meet the reporting requirements of Section 240 of the National Health Reform Act 2011, the Administrator is to include the basis of each State and Territory’s National Health Reform (NHR) funding and payments.
The State contribution to the funding of public hospital services and functions is calculated on an activity basis or provided as block funding in accordance with the National Health Reform Agreement – Addendum 2020-25. The State determines the amount they pay for public hospital services and functions and the mix of those services and functions and will meet the balance of the cost of delivering public hospital services and functions over and above the Commonwealth contribution.
State funding paid on an activity basis to Local Hospital Networks is based on the price set by the State (which is reported in Service Agreements and deeds of amendment) and the volume of weighted services as set out in Service Agreement and deeds of amendment for each service category.
Queensland utilises the National Efficient Price (NEP24) and price weights as determined by the Independent Health and Aged Care Pricing Authority as the underlying funding model for Activity Based Funding (ABF) in the State. The State also provides an overlay of supplementation grants where the Hospital and Health Service (HHS) reports higher average costs than the NEP.
Queensland utilises information from statewide cost collections to determine funding for small rural hospitals, standalone hospitals providing specialist mental health services (admitted and non-admitted), child and adolescent mental health services, non‑admitted home ventilation and teaching, training and research provided in hospitals. Operational and block grants are also provided to HHS' covering services provided and activities undertaken that are not within scope for ABF, for example, community dental services, primary care, home and community care.
The State determines when payments are made into the Pool and the State managed fund. Payments are made from the Pool account to HHS' and the State managed fund in accordance with the Service Agreement and deeds of amendment between the HHS and the Director-General, Queensland Health.
The State also makes payments for activities outside the scope of the National Health Reform Agreement. Out-of-scope activities are defined as those public hospital services with a funding source other than the NHRA.
The Director-General, Queensland Health and the HHS can agree amendments to the Service Agreement to adjust service volumes or pricing to take account of such matters as changing health needs, variations in actual service delivery and hospital performance.
The Service Agreements are available at www.health.qld.gov.au/system-governance/health-system/managing/agreemen…(Opens in a new tab/window);
Further information regarding the Basis for National Health Reform payments in both 2024-25 and previous financial years is included at www.publichospitalfunding.gov.au.