Queensland report, March 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 March 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, March 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 March 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, March 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 March 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
287,201,292 287,201,292 287,201,292
Commonwealth
Block funding
35,801,215 35,801,215 35,801,215
Commonwealth
Other funding
6,466,807 6,466,807 6,466,807
Total C'wealth
funding
329,469,314 287,201,292 35,801,215 6,466,807 329,469,314
QLD
funding
464,131,114 461,002,158 0 3,100,000 464,102,158
Other state/territory funding 4,900,000 0 4,900,000 4,900,000
Total 798,500,428 748,203,450 35,801,215 11,366,807 3,100,000 798,471,472

See definitions and explanatory notes following table 1b.

Table 1b – State pool account transactions YTD – Queensland, March 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 March 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
2,584,864,376 2,584,864,376 2,584,864,376
Commonwealth
Block funding
322,210,938 322,210,938 322,210,938
Commonwealth
Other funding
58,148,513 58,148,512 58,148,512
Total C'wealth
funding
2,965,223,827 2,584,864,376 322,210,938 58,148,512 2,965,223,826
QLD
funding
4,630,043,965 4,601,839,429 0 27,900,000 4,629,739,429
Other state/territory funding 44,100,000 0 44,100,000 44,100,000
Total 7,639,367,792 7,186,703,805 322,210,938 102,248,512 27,900,000 7,639,063,255

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, March 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 March 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 80,655,452 80,655,452
Total 116,456,667 116,456,667 0 116,456,667

See explanatory notes following table 2b.

Table 2b – State managed fund transactions YTD – Queensland, March 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 March 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 322,210,938 322,210,938
State/territory Block funding 806,540,875 806,540,875
Total 1,128,751,813 1,128,751,813 0 1,128,751,813

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, March 2018

This table shows NHR funding and payments by service category on both a monthly and year-to-date (YTD) basis for Queensland for March 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 479,784,989 479,784,989 4,604,983,309 4,604,983,309
Admitted mental health 39,994,134 39,994,134 388,694,749 388,694,749
Sub-acute 35,890,932 35,890,932 346,627,675 346,627,675
Emergency department 94,977,488 94,977,488 913,123,410 913,123,410
Non-admitted 97,555,907 97,555,907 933,274,662 933,274,662
Total ABF (Pool) 748,203,450 748,203,450 7,186,703,805 7,186,703,805
Block
Small rural hospitals 56,765,879 56,765,879 548,750,501 548,750,501
Teaching, training & research 25,703,216 25,703,216 253,030,886 253,030,886
Non-admitted mental health 32,561,862 32,561,862 316,528,383 316,528,383
Other non-admitted services 1,425,710 1,425,711 10,442,043 10,442,043
Total Block (SMF) 116,456,667 116,456,667 1,128,751,813 1,128,751,813
Other
Public health funding 6,466,807 6,466,807 58,148,513 58,148,512
Overdeposit 0 0 0 0
Cross-border 8,000,000 8,000,000 72,000,000 72,000,000
Interest 28,956 0 304,536 0
Total Other (Pool) 14,495,763 14,466,807 130,453,049 130,148,512
Grand Total 879,155,880 879,126,924 8,445,908,666 8,445,604,129

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, March 2018

This table shows NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland during March 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 46,992,977 8,446,722 55,439,698
Central Queensland Hospital and Health Service 25,380,677 7,009,193 32,389,870
Central West Hospital and Health Service 0 2,354,077 2,354,077
Children's Health Queensland Hospital and Health Service 34,865,839 2,135,761 37,001,601
Darling Downs Hospital and Health Service 29,660,310 12,518,294 42,178,604
Gold Coast Hospital and Health Service 81,059,185 6,724,203 87,783,388
Mackay Hospital and Health Service 19,515,783 4,722,186 24,237,970
Mater Misericordiae Health Service Brisbane 32,490,973 874,877 33,365,850
Metro North Hospital and Health Service 158,290,362 13,458,413 171,748,775
Metro South Hospital and Health Service 134,546,077 14,793,527 149,339,604
North West Hospital and Health Service 6,653,521 3,156,052 9,809,573
Queensland Virtual LHN 1,969,990 0 1,969,990
South West Hospital and Health Service 0 5,411,924 5,411,924
Sunshine Coast Hospital and Health Service 68,166,499 4,870,241 73,036,740
Torres and Cape Hospital and Health Service 0 5,982,555 5,982,555
Townsville Hospital and Health Service 45,384,390 9,625,147 55,009,536
West Moreton Hospital and Health Service 26,518,578 9,815,317 36,333,895
Wide Bay Hospital and Health Service 33,459,191 4,470,692 37,929,884
Total 744,954,352 116,369,179 861,323,532

See explanatory notes below table 4b.

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

This table shows YTD NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland as at March 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 447,068,224 82,060,893 529,129,117
Central Queensland Hospital and Health Service 246,256,623 67,989,403 314,246,027
Central West Hospital and Health Service 0 22,785,479 22,785,479
Children's Health Queensland Hospital and Health Service 330,863,391 19,418,782 350,282,174
Darling Downs Hospital and Health Service 284,499,835 121,334,710 405,834,546
Gold Coast Hospital and Health Service 782,696,531 65,510,775 848,207,306
Mackay Hospital and Health Service 185,878,214 45,847,403 231,725,617
Mater Misericordiae Health Service Brisbane 312,730,332 8,612,574 321,342,906
Metro North Hospital and Health Service 1,510,047,860 130,515,074 1,640,562,935
Metro South Hospital and Health Service 1,300,159,513 143,571,485 1,443,730,998
North West Hospital and Health Service 63,884,953 30,581,621 94,466,574
Queensland Virtual LHN 1,969,990 0 1,969,990
South West Hospital and Health Service 0 52,379,707 52,379,707
Sunshine Coast Hospital and Health Service 653,257,003 47,329,561 700,586,564
Torres and Cape Hospital and Health Service 0 57,905,003 57,905,003
Townsville Hospital and Health Service 464,642,647 93,473,486 558,116,133
West Moreton Hospital and Health Service 254,239,715 95,151,940 349,391,655
Wide Bay Hospital and Health Service 317,235,940 43,422,656 360,658,596
Total 7,155,430,771 1,127,890,555 8,283,321,327

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, March 2018

This table shows estimated state or territory hospital activity for activity-based funding services expressed as NWAU for March 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 9,468 85,217 113,625
Central Queensland Hospital and Health Service 4,818 43,365 57,822
Children's Health Queensland Hospital and Health Service 6,138 55,235 73,644
Darling Downs Hospital and Health Service 6,557 59,006 78,672
Gold Coast Hospital and Health Service 15,918 143,269 191,029
Mackay Hospital and Health Service 4,085 36,761 49,013
Mater Misericordiae Health Service Brisbane 6,514 58,637 78,190
Metro North Hospital and Health Service 31,636 284,723 379,632
Metro South Hospital and Health Service 25,543 229,888 306,519
North West Hospital and Health Service 985 8,864 11,818
Queensland Virtual LHN 317 317 3,800
Sunshine Coast Hospital and Health Service 11,471 103,234 137,643
Townsville Hospital and Health Service 9,700 87,304 116,408
West Moreton Hospital and Health Service 5,373 48,354 64,470
Wide Bay Hospital and Health Service 6,594 59,343 79,123
Total 145,117 1,303,518 1,741,408

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.