Queensland report, January 2018

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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 January 2018 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, January 2018

For the basis of the Commonwealth contribution to NHR funding, see Basis of Commonwealth NHR funding, 2017-18.

The basis used to determine NHR payments to LHNs in Queensland for January 2018 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:

36 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 2015-16 reported expenditure (net of depreciation) indexed to 2017-18 levels.

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 and value of services that the Department agrees to purchase from each HHS through the service agreement. The model reflects key priority areas for investment which is informed through a range of planning models, growth projections and performance objectives for each HHS.

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, January 2018

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 January 2018.

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
287,208,828 287,208,828 287,208,828
Commonwealth
Block funding
35,801,215 35,801,215 35,801,215
Commonwealth
Other funding
6,459,271 6,459,271 6,459,271
Total C'wealth
funding
329,469,314 287,208,828 35,801,215 6,459,271 329,469,314
QLD
funding
715,181,994 712,053,326 0 3,100,000 715,153,326
Other state/territory funding 4,900,000 0 4,900,000 4,900,000
Total 1,049,551,308 999,262,153 35,801,215 11,359,271 3,100,000 1,049,522,640

See definitions and explanatory notes following table 1b.

Table 1b – State pool account transactions YTD – Queensland, January 2018

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 January 2018.

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
2,010,461,793 2,010,461,793 2,010,461,793
Commonwealth
Block funding
250,608,507 250,608,507 250,608,507
Commonwealth
Other funding
45,214,899 45,214,898 45,214,898
Total C'wealth
funding
2,306,285,199 2,010,461,793 250,608,507 45,214,898 2,306,285,198
QLD
funding
3,705,880,058 3,683,943,205 0 21,700,000 3,705,643,205
Other state/territory funding 34,300,000 0 34,300,000 34,300,000
Total 6,046,465,257 5,694,404,998 250,608,507 79,514,898 21,700,000 6,046,228,403

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, January 2018

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 January 2018.

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 35,801,215 35,801,215
State/territory Block funding 123,966,442 123,966,442
Total 159,767,657 159,767,657 0 159,767,657

See explanatory notes following table 2b.

Table 2b – State managed fund transactions YTD – Queensland, January 2018

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 January 2018.

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 250,608,507 250,608,507
State/territory Block funding 641,591,355 641,591,355
Total 892,199,862 892,199,862 0 892,199,862

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, January 2018

This table shows NHR funding and payments by service category on both a monthly and year-to-date (YTD) basis for Queensland for January 2018. 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 640,206,810 640,206,810 3,648,712,467 3,648,712,467
Admitted mental health 53,745,271 53,745,271 308,540,380 308,540,380
Sub-acute 48,327,738 48,327,738 274,635,792 274,635,792
Emergency department 127,132,534 127,132,534 723,547,339 723,547,339
Non-admitted 129,849,800 129,849,800 738,969,019 738,969,019
Total ABF (Pool) 999,262,153 999,262,153 5,694,404,998 5,694,404,998
Block
Small rural hospitals 75,788,978 75,788,978 433,358,712 433,358,712
Teaching, training & research 36,554,169 36,554,169 201,624,450 201,624,450
Non-admitted mental health 45,604,463 45,604,463 251,309,832 251,309,832
Other non-admitted services 1,820,046 1,820,046 5,906,869 5,906,869
Total Block (SMF) 159,767,657 159,767,657 892,199,862 892,199,862
Other
Public health funding 6,459,271 6,459,271 45,214,899 45,214,898
Overdeposit 0 0 0 0
Cross-border 8,000,000 8,000,000 56,000,000 56,000,000
Interest 28,668 0 236,853 0
Total Other (Pool) 14,487,939 14,459,271 101,451,752 101,214,898
Grand Total 1,173,517,750 1,173,489,081 6,688,056,612 6,687,819,758

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, January 2018

This table shows NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland during January 2018.

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 61,298,069 11,494,558 72,792,627
Central Queensland Hospital and Health Service 33,489,562 9,508,267 42,997,829
Central West Hospital and Health Service 0 3,182,207 3,182,207
Children's Health Queensland Hospital and Health Service 44,747,265 2,170,454 46,917,719
Darling Downs Hospital and Health Service 37,825,293 16,977,255 54,802,549
Gold Coast Hospital and Health Service 105,497,688 9,480,788 114,978,477
Mackay Hospital and Health Service 24,760,519 6,334,217 31,094,737
Mater Misericordiae Health Service Brisbane 41,499,082 1,244,219 42,743,301
Metro North Hospital and Health Service 212,636,713 19,712,984 232,349,697
Metro South Hospital and Health Service 182,099,628 20,943,293 203,042,921
North West Hospital and Health Service 8,820,440 4,197,832 13,018,272
South West Hospital and Health Service 0 7,320,674 7,320,674
Sunshine Coast Hospital and Health Service 105,085,782 6,894,115 111,979,896
Torres and Cape Hospital and Health Service 0 8,088,841 8,088,841
Townsville Hospital and Health Service 62,377,306 12,924,919 75,302,226
West Moreton Hospital and Health Service 34,127,579 13,080,664 47,208,243
Wide Bay Hospital and Health Service 40,847,319 6,087,946 46,935,265
Total 995,112,245 159,643,235 1,154,755,480

See explanatory notes below table 4b.

Table 4b – NHR contributions by local hospital network YTD – Queensland, January 2018

This table shows YTD NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland as at January 2018.

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 353,623,626 65,167,450 418,791,076
Central Queensland Hospital and Health Service 195,705,587 53,971,018 249,676,605
Central West Hospital and Health Service 0 18,077,326 18,077,326
Children's Health Queensland Hospital and Health Service 268,004,524 12,131,549 280,136,072
Darling Downs Hospital and Health Service 225,557,607 96,298,123 321,855,730
Gold Coast Hospital and Health Service 620,644,939 52,062,370 672,707,308
Mackay Hospital and Health Service 146,713,914 36,305,611 183,019,525
Mater Misericordiae Health Service Brisbane 247,918,794 6,862,822 254,781,617
Metro North Hospital and Health Service 1,194,547,161 103,598,249 1,298,145,410
Metro South Hospital and Health Service 1,030,491,444 113,984,432 1,144,475,876
North West Hospital and Health Service 50,116,249 24,184,784 74,301,033
South West Hospital and Health Service 0 41,555,859 41,555,859
Sunshine Coast Hospital and Health Service 517,363,721 37,589,080 554,952,801
Torres and Cape Hospital and Health Service 0 45,939,893 45,939,893
Townsville Hospital and Health Service 367,391,365 74,030,355 441,421,721
West Moreton Hospital and Health Service 200,838,803 75,273,389 276,112,191
Wide Bay Hospital and Health Service 250,695,385 34,481,271 285,176,656
Total 5,669,613,118 891,513,580 6,561,126,698

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, January 2018

This table shows estimated state or territory hospital activity for activity-based funding services expressed as NWAU for January 2018, 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 2017-18
Cairns and Hinterland Hospital and Health Service 9,470 66,281 113,625
Central Queensland Hospital and Health Service 4,844 33,729 57,771
Children's Health Queensland Hospital and Health Service 6,071 42,959 73,777
Darling Downs Hospital and Health Service 6,554 45,892 78,672
Gold Coast Hospital and Health Service 16,301 111,433 190,266
Mackay Hospital and Health Service 4,083 28,591 49,013
Mater Misericordiae Health Service Brisbane 6,518 45,609 78,190
Metro North Hospital and Health Service 31,985 221,451 378,930
Metro South Hospital and Health Service 26,460 178,802 304,680
North West Hospital and Health Service 985 6,894 11,818
Sunshine Coast Hospital and Health Service 11,576 80,292 137,428
Townsville Hospital and Health Service 9,803 67,904 116,204
West Moreton Hospital and Health Service 5,456 37,608 64,309
Wide Bay Hospital and Health Service 6,593 46,155 79,123
Total 146,699 1,013,601 1,733,806

Note: Queensland has revised the purchased NWAU estimates as part of the mid-year revision to LHN Service Agreements. The revised NWAU are yet to be reflected in the Administrator reporting due to the timing of adjusting the data in the National Data Model. Therefore the NWAU in the Administrator reporting may be different to the NWAU in the published Service Agreements

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.