Queensland report, April 2017

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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 April 2017 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, April 2017

For the basis of the Commonwealth contribution to NHR funding, see Basis of Commonwealth NHR funding, 2016-17.

The basis used to determine NHR payments to LHNs in Queensland for April 2017 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:

35 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.

Where an HHS achieves activity above the NWAU target set through the Service Agreement the NHR growth NWAU value at the State price is paid to HHSs.

The remaining public hospitals, predominantly small regional and rural hospitals, and specialist mental health facilities are funded through block funding arrangements which take account of hospital size and location. These are based on the National Efficient Cost Determination with some minor modifications for the actual expenditure for the service.

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.

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, April 2017

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 April 2017.

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
263,595,801 263,595,801 263,595,801
Commonwealth
Block funding
35,500,072 35,500,072 35,500,072
Commonwealth
Other funding
6,152,721 6,152,721 6,152,721
Total C'wealth
funding
305,248,594 263,595,801 35,500,072 6,152,721 305,248,594
QLD
funding
526,855,464 523,828,989 0 3,000,000 526,828,989
Other state/territory funding 4,700,000 0 4,700,000 4,700,000
Total 836,804,058 787,424,789 35,500,072 10,852,721 3,000,000 836,777,583

See definitions and explanatory notes following table 1b.

Table 1b – State pool account transactions YTD – Queensland, April 2017

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 April 2017.

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
2,775,056,595 2,775,056,595 2,775,056,595
Commonwealth
Block funding
344,519,198 344,519,198 344,519,198
Commonwealth
Other funding
62,010,583 62,010,583 62,010,583
Total C'wealth
funding
3,181,586,376 2,775,056,595 344,519,198 62,010,583 3,181,586,376
QLD
funding
4,524,769,994 4,494,455,302 0 30,000,000 4,524,455,302
Other state/territory funding 47,000,000 0 47,000,000 47,000,000
Total 7,753,356,371 7,269,511,897 344,519,198 109,010,583 30,000,000 7,753,041,679

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, April 2017

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 April 2017.

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 35,500,072 35,500,072
State/territory Block funding 74,879,330 74,879,330
Total 110,379,402 110,379,402 0 110,379,402

See explanatory notes following table 2b.

Table 2b – State managed fund transactions YTD – Queensland, April 2017

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 April 2017.

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 344,519,198 344,519,198
State/territory Block funding 773,691,334 773,691,334
Total 1,118,210,532 1,118,210,532 0 1,118,210,532

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, April 2017

This table shows NHR funding and payments by service category on both a monthly and year-to-date (YTD) basis for Queensland for April 2017. 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 495,700,245 495,700,245 4,586,969,654 4,586,969,654
Admitted mental health 42,150,162 42,150,162 389,115,711 389,115,711
Sub-acute 47,379,077 47,379,077 425,042,700 425,042,700
Emergency department 104,380,761 104,380,761 955,518,768 955,518,768
Non-admitted 97,814,545 97,814,545 912,865,064 912,865,064
Total ABF (Pool) 787,424,789 787,424,789 7,269,511,897 7,269,511,897
Block
Small rural hospitals 54,539,403 54,144,347 558,739,108 555,852,442
Teaching, training & research 24,014,896 26,014,896 252,227,076 254,227,076
Non-admitted mental health 31,247,703 29,683,078 300,852,316 302,249,778
Other non-admitted services 577,401 537,082 6,392,032 5,881,235
Total Block (SMF) 110,379,402 110,379,402 1,118,210,532 1,118,210,532
Other
Public health funding 6,152,721 6,152,721 62,010,583 62,010,583
Overdeposit 0 0 0 0
Cross-border 7,700,000 7,700,000 77,000,000 77,000,000
Interest 26,476 0 314,692 0
Total Other (Pool) 13,879,197 13,852,721 139,325,276 139,010,583
Grand Total 911,683,388 911,656,913 8,527,047,705 8,526,733,013

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, April 2017

This table shows NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland during April 2017.

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 41,436,887 14,580,668 56,017,555
Central Queensland Hospital and Health Service 35,239,210 5,844,537 41,083,747
Central West Hospital and Health Service 0 2,000,179 2,000,179
Children's Health Queensland Hospital and Health Service 31,410,442 1,420,684 32,831,126
Darling Downs Hospital and Health Service 28,131,888 11,900,409 40,032,298
Gold Coast Hospital and Health Service 84,352,304 5,764,138 90,116,441
Mackay Hospital and Health Service 21,359,784 3,993,658 25,353,441
Mater Misericordiae Health Service Brisbane 31,465,584 733,492 32,199,076
Metro North Hospital and Health Service 135,808,774 10,814,256 146,623,029
Metro South Hospital and Health Service 166,135,351 13,706,544 179,841,895
North West Hospital and Health Service 5,941,452 2,794,791 8,736,243
South West Hospital and Health Service 0 4,884,284 4,884,284
Sunshine Coast Hospital and Health Service 76,377,785 4,023,083 80,400,868
Torres and Cape Hospital and Health Service 0 5,172,710 5,172,710
Townsville Hospital and Health Service 58,768,648 9,270,444 68,039,092
West Moreton Hospital and Health Service 27,189,087 9,344,973 36,534,060
Wide Bay Hospital and Health Service 40,661,036 4,057,203 44,718,239
Total 784,278,231 110,306,053 894,584,284

See explanatory notes below table 4b.

Table 4b – NHR contributions by local hospital network YTD – Queensland, April 2017

This table shows YTD NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland as at April 2017.

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 454,503,976 79,305,543 533,809,519
Central Queensland Hospital and Health Service 260,844,675 63,630,918 324,475,593
Central West Hospital and Health Service 0 21,902,566 21,902,566
Children's Health Queensland Hospital and Health Service 360,164,114 15,074,727 375,238,841
Darling Downs Hospital and Health Service 275,838,875 129,893,320 405,732,195
Gold Coast Hospital and Health Service 786,071,538 61,736,389 847,807,928
Mackay Hospital and Health Service 189,546,329 43,415,297 232,961,626
Mater Misericordiae Health Service Brisbane 315,687,802 8,095,929 323,783,731
Metro North Hospital and Health Service 1,487,290,703 115,815,549 1,603,106,253
Metro South Hospital and Health Service 1,377,112,322 147,884,794 1,524,997,115
North West Hospital and Health Service 60,911,534 30,527,318 91,438,852
South West Hospital and Health Service 0 53,484,553 53,484,553
Sunshine Coast Hospital and Health Service 598,850,208 43,413,206 642,263,413
Torres and Cape Hospital and Health Service 0 56,642,949 56,642,949
Townsville Hospital and Health Service 473,770,839 100,663,393 574,434,233
West Moreton Hospital and Health Service 254,999,235 101,931,628 356,930,862
Wide Bay Hospital and Health Service 342,350,966 43,982,861 386,333,828
Total 7,237,943,117 1,117,400,939 8,355,344,056

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, April 2017

This table shows estimated state or territory hospital activity for activity-based funding services expressed as NWAU for April 2017, 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 2016-17
Cairns and Hinterland Hospital and Health Service 8,168 81,685 98,022
Central Queensland Hospital and Health Service 4,520 45,198 54,237
Children's Health Queensland Hospital and Health Service 5,565 55,655 66,786
Darling Downs Hospital and Health Service 5,351 53,506 64,207
Gold Coast Hospital and Health Service 14,901 149,011 178,813
Mackay Hospital and Health Service 3,429 34,293 41,152
Mater Misericordiae Health Service Brisbane 5,743 57,413 68,757
Metro North Hospital and Health Service 26,904 269,043 322,851
Metro South Hospital and Health Service 23,771 237,706 285,247
North West Hospital and Health Service 953 9,530 11,436
Sunshine Coast Hospital and Health Service 10,153 101,531 121,837
Townsville Hospital and Health Service 8,507 85,068 102,081
West Moreton Hospital and Health Service 4,993 49,928 59,913
Wide Bay Hospital and Health Service 5,978 59,780 71,736
Total 128,936 1,289,345 1,547,075

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.