Queensland report, December 2016

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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 December 2016 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, December 2016

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 December 2016 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, December 2016

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 December 2016.

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
34,335,458 34,335,458 34,335,458
Commonwealth
Other funding
6,213,143 6,213,143 6,213,143
Total C'wealth
funding
304,144,402 263,595,801 34,335,458 6,213,143 304,144,402
QLD
funding
401,074,405 401,048,863 0 0 401,048,863
Other state/territory funding 0 0 0 0
Total 705,218,808 664,644,664 34,335,458 6,213,143 0 705,193,265

See definitions and explanatory notes following table 1b.

Table 1b – State pool account transactions YTD – Queensland, December 2016

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 December 2016.

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
1,720,673,391 1,720,673,391 1,720,673,391
Commonwealth
Block funding
206,012,751 206,012,751 206,012,751
Commonwealth
Other funding
37,278,856 37,278,856 37,278,856
Total C'wealth
funding
1,963,964,998 1,720,673,391 206,012,751 37,278,856 1,963,964,998
QLD
funding
2,595,722,497 2,595,517,974 0 0 2,595,517,974
Other state/territory funding 0 0 0 0
Total 4,559,687,494 4,316,191,365 206,012,751 37,278,856 0 4,559,482,971

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, December 2016

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 December 2016.

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 34,335,458 34,335,458
State/territory Block funding 69,882,369 69,882,369
Total 104,217,827 104,217,827 0 104,217,827

See explanatory notes following table 2b.

Table 2b – State managed fund transactions YTD – Queensland, December 2016

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 December 2016.

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 206,012,751 206,012,751
State/territory Block funding 454,229,555 454,229,555
Total 660,242,305 660,242,305 0 660,242,305

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, December 2016

This table shows NHR funding and payments by service category on both a monthly and year-to-date (YTD) basis for Queensland for December 2016. 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 419,290,175 419,290,175 2,723,894,482 2,723,894,482
Admitted mental health 35,607,636 35,607,636 231,009,635 231,009,635
Sub-acute 38,934,162 38,934,162 251,143,146 251,143,146
Emergency department 87,153,505 87,153,505 566,989,034 566,989,034
Non-admitted 83,659,185 83,659,185 543,155,068 543,155,068
Total ABF (Pool) 664,644,664 664,644,664 4,316,191,365 4,316,191,365
Block
Small rural hospitals 52,424,967 52,148,121 330,737,303 329,076,230
Teaching, training & research 23,183,329 23,183,329 148,881,084 148,881,084
Non-admitted mental health 28,001,778 28,330,899 176,804,974 178,779,699
Other non-admitted services 607,753 555,477 3,818,945 3,505,293
Total Block (SMF) 104,217,827 104,217,827 660,242,305 660,242,305
Other
Public health funding 6,213,143 6,213,143 37,278,856 37,278,856
Overdeposit 0 0 0 0
Cross-border 0 0 0 0
Interest 25,543 0 204,523 0
Total Other (Pool) 6,238,685 6,213,143 37,483,379 37,278,856
Grand Total 775,101,176 775,075,634 5,013,917,049 5,013,712,526

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, December 2016

This table shows NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland during December 2016.

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 38,546,418 6,691,906 45,238,324
Central Queensland Hospital and Health Service 21,882,954 5,988,960 27,871,914
Central West Hospital and Health Service 0 2,068,677 2,068,677
Children's Health Queensland Hospital and Health Service 31,410,442 1,396,431 32,806,873
Darling Downs Hospital and Health Service 25,183,205 12,244,466 37,427,671
Gold Coast Hospital and Health Service 71,100,641 5,752,485 76,853,125
Mackay Hospital and Health Service 16,183,314 4,082,572 20,265,886
Mater Misericordiae Health Service Brisbane 28,979,998 747,926 29,727,923
Metro North Hospital and Health Service 144,540,846 10,789,988 155,330,834
Metro South Hospital and Health Service 124,277,441 13,842,388 138,119,830
North West Hospital and Health Service 5,517,331 2,878,933 8,396,263
South West Hospital and Health Service 0 5,051,568 5,051,568
Sunshine Coast Hospital and Health Service 53,010,551 4,063,974 57,074,525
Torres and Cape Hospital and Health Service 0 5,349,876 5,349,876
Townsville Hospital and Health Service 42,174,709 9,459,275 51,633,984
West Moreton Hospital and Health Service 23,366,647 9,604,713 32,971,360
Wide Bay Hospital and Health Service 35,572,168 4,128,897 39,701,065
Total 661,746,664 104,143,034 765,889,699

See explanatory notes below table 4b.

Table 4b – NHR contributions by local hospital network YTD – Queensland, December 2016

This table shows YTD NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland as at December 2016.

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 271,480,300 42,400,296 313,880,596
Central Queensland Hospital and Health Service 149,706,538 37,876,631 187,583,169
Central West Hospital and Health Service 0 13,054,209 13,054,209
Children's Health Queensland Hospital and Health Service 224,686,481 8,921,668 233,608,148
Darling Downs Hospital and Health Service 165,035,803 77,363,154 242,398,957
Gold Coast Hospital and Health Service 468,116,830 36,614,853 504,731,683
Mackay Hospital and Health Service 115,068,735 25,834,678 140,903,413
Mater Misericordiae Health Service Brisbane 186,330,040 4,803,107 191,133,147
Metro North Hospital and Health Service 903,779,101 68,685,628 972,464,729
Metro South Hospital and Health Service 800,062,466 87,852,707 887,915,174
North West Hospital and Health Service 36,640,931 18,184,662 54,825,593
South West Hospital and Health Service 0 31,877,487 31,877,487
Sunshine Coast Hospital and Health Service 347,249,985 25,791,022 373,041,007
Torres and Cape Hospital and Health Service 0 33,759,934 33,759,934
Townsville Hospital and Health Service 276,058,484 59,885,387 335,943,871
West Moreton Hospital and Health Service 151,098,648 60,700,397 211,799,045
Wide Bay Hospital and Health Service 202,244,018 26,156,175 228,400,193
Total 4,297,558,361 659,761,995 4,957,320,355

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, December 2016

This table shows estimated state or territory hospital activity for activity-based funding services expressed as NWAU for December 2016, 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 49,011 98,022
Central Queensland Hospital and Health Service 4,520 27,119 54,237
Children's Health Queensland Hospital and Health Service 5,565 33,393 66,786
Darling Downs Hospital and Health Service 5,351 32,103 64,207
Gold Coast Hospital and Health Service 14,901 89,406 178,813
Mackay Hospital and Health Service 3,429 20,576 41,152
Mater Misericordiae Health Service Brisbane 5,743 34,456 68,757
Metro North Hospital and Health Service 26,904 161,426 322,851
Metro South Hospital and Health Service 23,771 142,623 285,247
North West Hospital and Health Service 953 5,718 11,436
Sunshine Coast Hospital and Health Service 10,153 60,919 121,837
Townsville Hospital and Health Service 8,507 51,041 102,081
West Moreton Hospital and Health Service 4,993 29,957 59,913
Wide Bay Hospital and Health Service 5,978 35,868 71,736
Total 128,936 773,615 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.