Queensland report, June 2018

Print friendly version (PDF, 357 kB)

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 June 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, June 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 June 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, June 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 June 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
617,085,128 617,085,128 617,085,128
Commonwealth
Block funding
41,434,240 41,434,240 41,434,240
Commonwealth
Other funding
6,466,807 6,466,807 6,466,807
Total C'wealth
funding
664,986,175 617,085,128 41,434,240 6,466,807 664,986,175
QLD
funding
260,786,990 257,618,968 431,181 3,100,000 261,150,149
Other state/territory funding 4,900,000 0 4,900,000 4,900,000
Total 930,673,165 874,704,096 41,434,240 11,797,988 3,100,000 931,036,324

See definitions and explanatory notes following table 1b.

Table 1b – State pool account transactions YTD – Queensland, June 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 June 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
3,765,086,037 3,765,086,037 3,765,086,037
Commonwealth
Block funding
446,513,659 446,513,659 446,513,659
Commonwealth
Other funding
77,548,934 77,548,933 77,548,933
Total C'wealth
funding
4,289,148,630 3,765,086,037 446,513,659 77,548,933 4,289,148,629
QLD
funding
5,830,084,484 5,792,453,303 431,181 37,200,000 5,830,084,484
Other state/territory funding 58,800,000 0 58,800,000 58,800,000
Total 10,178,033,114 9,557,539,340 446,513,659 136,780,114 37,200,000 10,178,033,114

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.

Total Activity Based Funding receipts from the Commonwealth includes an adjustment of $335,516,861.26 in relation to the Commonwealth Treasurer’s Determination for 2015-16 and six months reconciliation for 2016-17.

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, June 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 June 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 41,434,240 41,434,240
State/territory Block funding 79,359,944 79,359,943
Total 120,794,184 120,794,184 0 120,794,184

See explanatory notes following table 2b.

Table 2b – State managed fund transactions YTD – Queensland, June 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 June 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 446,513,659 446,513,659
State/territory Block funding 1,031,608,155 1,031,608,155
Total 1,478,121,814 1,478,121,813 0 1,478,121,814

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, June 2018

This table shows NHR funding and payments by service category on both a monthly and year-to-date (YTD) basis for Queensland for June 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 562,779,669 562,779,669 6,127,145,761 6,127,145,761
Admitted mental health 45,696,188 45,696,188 514,507,107 514,507,107
Sub-acute 41,096,594 41,096,594 459,647,968 459,647,968
Emergency department 110,931,643 110,931,643 1,213,723,004 1,213,723,004
Non-admitted 114,200,001 114,200,001 1,242,515,501 1,242,515,501
Total ABF (Pool) 874,704,096 874,704,096 9,557,539,340 9,557,539,340
Block
Small rural hospitals 55,411,713 55,411,713 709,309,967 709,309,967
Teaching, training & research 27,003,566 27,003,566 330,140,533 330,140,533
Non-admitted mental health 36,994,114 36,994,114 424,252,747 424,252,747
Other non-admitted services 1,384,790 1,384,791 14,418,566 14,418,566
Total Block (SMF) 120,794,184 120,794,184 1,478,121,814 1,478,121,814
Other
Public health funding 6,466,807 6,466,807 77,548,934 77,548,934
Overdeposit 0 0 0 0
Cross-border 8,000,000 8,000,000 96,000,000 96,000,000
Interest 68,022 431,181 431,180 431,180
Total Other (Pool) 14,534,829 14,897,988 173,980,114 173,980,114
Grand Total 1,010,033,109 1,010,396,267 11,209,641,269 11,209,641,269

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, June 2018

This table shows NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland during June 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 58,903,945 8,530,108 67,434,053
Central Queensland Hospital and Health Service 32,457,744 7,058,154 39,515,898
Central West Hospital and Health Service 0 2,362,921 2,362,921
Children's Health Queensland Hospital and Health Service 49,918,294 3,630,761 53,549,055
Darling Downs Hospital and Health Service 33,713,243 12,602,310 46,315,553
Gold Coast Hospital and Health Service 97,543,005 7,006,547 104,549,552
Mackay Hospital and Health Service 24,673,143 4,772,206 29,445,349
Mater Misericordiae Health Service Brisbane 44,631,039 919,138 45,550,177
Metro North Hospital and Health Service 164,657,066 14,499,098 179,156,164
Metro South Hospital and Health Service 141,038,360 15,466,515 156,504,875
North West Hospital and Health Service 7,525,929 3,178,707 10,704,636
Queensland Virtual LHN 5,317,483 0 5,317,483
South West Hospital and Health Service 0 5,435,432 5,435,432
Sunshine Coast Hospital and Health Service 65,796,244 5,091,749 70,887,994
Torres and Cape Hospital and Health Service 0 6,006,139 6,006,139
Townsville Hospital and Health Service 55,597,538 9,732,654 65,330,192
West Moreton Hospital and Health Service 41,996,500 9,892,411 51,888,911
Wide Bay Hospital and Health Service 46,471,458 4,517,421 50,988,879
Total 870,240,992 120,702,270 990,943,262

See explanatory notes below table 4b.

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

This table shows YTD NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland as at June 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 598,791,141 107,173,058 705,964,199
Central Queensland Hospital and Health Service 329,055,489 88,817,727 417,873,216
Central West Hospital and Health Service 0 29,777,771 29,777,771
Children's Health Queensland Hospital and Health Service 449,323,101 27,230,738 476,553,840
Darling Downs Hospital and Health Service 376,716,857 158,538,100 535,254,956
Gold Coast Hospital and Health Service 1,042,649,227 85,685,506 1,128,334,734
Mackay Hospital and Health Service 249,072,090 59,891,984 308,964,074
Mater Misericordiae Health Service Brisbane 421,526,669 11,237,205 432,763,874
Metro North Hospital and Health Service 1,989,342,630 171,380,509 2,160,723,139
Metro South Hospital and Health Service 1,712,570,622 188,049,196 1,900,619,818
North West Hospital and Health Service 84,599,367 39,963,217 124,562,585
Queensland Virtual LHN 11,201,694 0 11,201,694
South West Hospital and Health Service 0 68,457,870 68,457,870
Sunshine Coast Hospital and Health Service 854,548,761 61,967,064 916,515,825
Torres and Cape Hospital and Health Service 0 75,676,038 75,676,038
Townsville Hospital and Health Service 616,776,537 122,103,501 738,880,037
West Moreton Hospital and Health Service 349,401,480 124,331,306 473,732,786
Wide Bay Hospital and Health Service 429,811,009 56,717,302 486,528,311
Total 9,515,386,673 1,476,998,093 10,992,384,766

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, June 2018

This table shows estimated state or territory hospital activity for activity-based funding services expressed as NWAU for June 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 9,472 113,625 113,625
Central Queensland Hospital and Health Service 4,822 57,823 57,822
Children's Health Queensland Hospital and Health Service 6,132 73,643 73,644
Darling Downs Hospital and Health Service 6,552 78,672 78,672
Gold Coast Hospital and Health Service 15,924 191,029 191,029
Mackay Hospital and Health Service 4,083 49,014 49,013
Mater Misericordiae Health Service Brisbane 6,525 78,190 78,190
Metro North Hospital and Health Service 31,637 379,632 379,632
Metro South Hospital and Health Service 25,545 306,519 306,519
North West Hospital and Health Service 983 11,817 11,818
Queensland Virtual LHN 2,849 3,800 3,800
Sunshine Coast Hospital and Health Service 11,467 137,643 137,643
Townsville Hospital and Health Service 9,704 116,408 116,408
West Moreton Hospital and Health Service 5,370 64,470 64,470
Wide Bay Hospital and Health Service 6,591 79,122 79,123
Total 147,656 1,741,408 1,741,408

Note: The NWAU estimates form the basis of monthly reporting of services until actual service numbers become available. Queensland weighted average unit estimates are adjusted at each amendment window with Local Hospital Networks, and may differ from final LHN deeds due to timing.

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.