Queensland report, May 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 May 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, May 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 May 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, May 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 May 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
281,568,267 281,568,267 281,568,267
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
329,469,314 281,568,267 41,434,240 6,466,807 329,469,314
QLD
funding
463,112,249 459,982,806 0 3,100,000 463,082,806
Other state/territory funding 4,900,000 0 4,900,000 4,900,000
Total 797,481,563 741,551,073 41,434,240 11,366,807 3,100,000 797,452,120

See definitions and explanatory notes following table 1b.

Table 1b – State pool account transactions YTD – Queensland, May 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 May 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
3,148,000,909 3,148,000,909 3,148,000,909
Commonwealth
Block funding
405,079,419 405,079,419 405,079,419
Commonwealth
Other funding
71,082,127 71,082,126 71,082,126
Total C'wealth
funding
3,624,162,455 3,148,000,909 405,079,419 71,082,126 3,624,162,454
QLD
funding
5,569,297,494 5,534,834,336 0 34,100,000 5,568,934,336
Other state/territory funding 53,900,000 0 53,900,000 53,900,000
Total 9,247,359,949 8,682,835,245 405,079,419 124,982,126 34,100,000 9,246,996,789

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, May 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 May 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 79,359,944
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, May 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 May 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 405,079,419 405,079,419
State/territory Block funding 952,248,211 952,248,211
Total 1,357,327,630 1,357,327,630 0 1,357,327,630

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, May 2018

This table shows NHR funding and payments by service category on both a monthly and year-to-date (YTD) basis for Queensland for May 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 475,513,625 475,513,625 5,564,366,092 5,564,366,092
Admitted mental health 39,706,405 39,706,405 468,810,918 468,810,918
Sub-acute 35,649,630 35,649,630 418,551,374 418,551,374
Emergency department 94,011,255 94,011,255 1,102,791,361 1,102,791,361
Non-admitted 96,670,159 96,670,159 1,128,315,500 1,128,315,500
Total ABF (Pool) 741,551,073 741,551,073 8,682,835,245 8,682,835,245
Block
Small rural hospitals 55,411,713 55,411,713 653,898,254 653,898,254
Teaching, training & research 27,003,566 27,003,566 303,136,967 303,136,967
Non-admitted mental health 36,994,114 36,994,114 387,258,633 387,258,633
Other non-admitted services 1,384,790 1,384,790 13,033,776 13,033,776
Total Block (SMF) 120,794,184 120,794,184 1,357,327,630 1,357,327,630
Other
Public health funding 6,466,807 6,466,807 71,082,127 71,082,126
Overdeposit 0 0 0 0
Cross-border 8,000,000 8,000,000 88,000,000 88,000,000
Interest 29,443 0 363,158 0
Total Other (Pool) 14,496,250 14,466,807 159,445,285 159,082,126
Grand Total 876,841,507 876,812,064 10,199,608,160 10,199,245,000

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, May 2018

This table shows NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland during May 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 45,988,490 8,758,108 54,746,598
Central Queensland Hospital and Health Service 24,956,580 7,257,409 32,213,989
Central West Hospital and Health Service 0 2,432,859 2,432,859
Children's Health Queensland Hospital and Health Service 33,989,738 2,226,089 36,215,827
Darling Downs Hospital and Health Service 28,959,368 12,953,803 41,913,171
Gold Coast Hospital and Health Service 80,490,543 7,004,425 87,494,968
Mackay Hospital and Health Service 19,076,801 4,894,184 23,970,985
Mater Misericordiae Health Service Brisbane 31,784,083 919,138 32,703,221
Metro North Hospital and Health Service 155,892,889 14,008,902 169,901,790
Metro South Hospital and Health Service 134,552,986 15,369,384 149,922,370
North West Hospital and Health Service 6,550,101 3,265,267 9,815,368
Queensland Virtual LHN 1,957,110 0 1,957,110
South West Hospital and Health Service 0 5,593,041 5,593,041
Sunshine Coast Hospital and Health Service 67,237,813 5,064,968 72,302,781
Torres and Cape Hospital and Health Service 0 6,182,768 6,182,768
Townsville Hospital and Health Service 47,834,659 9,978,079 57,812,738
West Moreton Hospital and Health Service 26,343,044 10,158,995 36,502,039
Wide Bay Hospital and Health Service 32,758,459 4,634,852 37,393,311
Total 738,372,665 120,702,270 859,074,935

See explanatory notes below table 4b.

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

This table shows YTD NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland as at May 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 539,887,196 98,642,950 638,530,146
Central Queensland Hospital and Health Service 296,597,745 81,759,573 378,357,318
Central West Hospital and Health Service 0 27,414,850 27,414,850
Children's Health Queensland Hospital and Health Service 399,404,807 23,599,978 423,004,784
Darling Downs Hospital and Health Service 343,003,614 145,935,789 488,939,403
Gold Coast Hospital and Health Service 945,106,222 78,678,959 1,023,785,181
Mackay Hospital and Health Service 224,398,947 55,119,778 279,518,725
Mater Misericordiae Health Service Brisbane 376,895,630 10,318,067 387,213,696
Metro North Hospital and Health Service 1,824,685,563 156,881,412 1,981,566,975
Metro South Hospital and Health Service 1,571,532,262 172,582,681 1,744,114,943
North West Hospital and Health Service 77,073,438 36,784,511 113,857,949
Queensland Virtual LHN 5,884,210 0 5,884,210
South West Hospital and Health Service 0 63,022,439 63,022,439
Sunshine Coast Hospital and Health Service 788,752,517 56,875,315 845,627,832
Torres and Cape Hospital and Health Service 0 69,669,899 69,669,899
Townsville Hospital and Health Service 561,178,999 112,370,847 673,549,845
West Moreton Hospital and Health Service 307,404,981 114,438,895 421,843,876
Wide Bay Hospital and Health Service 383,339,551 52,199,881 435,539,432
Total 8,645,145,682 1,356,295,823 10,001,441,505

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, May 2018

This table shows estimated state or territory hospital activity for activity-based funding services expressed as NWAU for May 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 9,468 104,153 113,625
Central Queensland Hospital and Health Service 4,818 53,001 57,822
Children's Health Queensland Hospital and Health Service 6,138 67,511 73,644
Darling Downs Hospital and Health Service 6,557 72,120 78,672
Gold Coast Hospital and Health Service 15,918 175,105 191,029
Mackay Hospital and Health Service 4,085 44,931 49,013
Mater Misericordiae Health Service Brisbane 6,514 71,665 78,190
Metro North Hospital and Health Service 31,636 347,995 379,632
Metro South Hospital and Health Service 25,543 280,974 306,519
North West Hospital and Health Service 985 10,834 11,818
Queensland Virtual LHN 317 951 3,800
Sunshine Coast Hospital and Health Service 11,471 126,176 137,643
Townsville Hospital and Health Service 9,700 106,704 116,408
West Moreton Hospital and Health Service 5,373 59,100 64,470
Wide Bay Hospital and Health Service 6,594 72,531 79,123
Total 145,117 1,593,752 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.