Queensland report, February 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 February 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, February 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 February 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, February 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 February 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
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
388,025,978 387,993,296 0 0 387,993,296
Other state/territory funding 0 0 0 0
Total 692,170,380 651,589,097 34,335,458 6,213,143 0 692,137,698

See definitions and explanatory notes following table 1b.

Table 1b – State pool account transactions YTD – Queensland, February 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 February 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
2,247,864,993 2,247,864,993 2,247,864,993
Commonwealth
Block funding
274,683,668 274,683,668 274,683,668
Commonwealth
Other funding
49,705,141 49,705,141 49,705,141
Total C'wealth
funding
2,572,253,802 2,247,864,993 274,683,668 49,705,141 2,572,253,802
QLD
funding
3,565,161,815 3,564,898,873 0 0 3,564,898,873
Other state/territory funding 0 0 0 0
Total 6,137,415,617 5,812,763,866 274,683,668 49,705,141 0 6,137,152,675

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, February 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 February 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 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, February 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 February 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 274,683,668 274,683,668
State/territory Block funding 628,929,635 628,929,635
Total 903,613,303 903,613,303 0 903,613,303

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, February 2017

This table shows NHR funding and payments by service category on both a monthly and year-to-date (YTD) basis for Queensland for February 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 411,271,305 411,271,305 3,668,474,514 3,668,474,514
Admitted mental health 34,865,442 34,865,442 311,060,261 311,060,261
Sub-acute 38,104,430 38,104,430 338,672,000 338,672,000
Emergency department 85,497,628 85,497,628 763,402,413 763,402,413
Non-admitted 81,850,292 81,850,292 731,154,679 731,154,679
Total ABF (Pool) 651,589,097 651,589,097 5,812,763,866 5,812,763,866
Block
Small rural hospitals 52,424,967 52,148,121 451,774,738 449,559,974
Teaching, training & research 23,183,329 23,183,329 205,028,851 205,028,851
Non-admitted mental health 28,001,778 28,330,899 241,602,835 244,235,802
Other non-admitted services 607,753 555,477 5,206,878 4,788,675
Total Block (SMF) 104,217,827 104,217,827 903,613,303 903,613,303
Other
Public health funding 6,213,143 6,213,143 49,705,141 49,705,141
Overdeposit 0 0 0 0
Cross-border 0 0 0 0
Interest 32,682 0 262,942 0
Total Other (Pool) 6,245,825 6,213,143 49,968,083 49,705,141
Grand Total 762,052,749 762,020,067 6,766,345,252 6,766,082,310

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, February 2017

This table shows NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland during February 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 38,546,418 6,691,906 45,238,324
Central Queensland Hospital and Health Service 22,989,737 5,988,960 28,978,697
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 135,808,774 10,789,988 146,598,761
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 30,141,891 4,128,897 34,270,788
Total 648,691,097 104,143,034 752,834,132

See explanatory notes below table 4b.

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

This table shows YTD NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland as at February 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 359,520,670 58,032,970 417,553,640
Central Queensland Hospital and Health Service 202,615,729 51,797,421 254,413,150
Central West Hospital and Health Service 0 17,833,710 17,833,710
Children's Health Queensland Hospital and Health Service 297,343,230 12,257,612 309,600,842
Darling Downs Hospital and Health Service 222,523,781 105,748,445 328,272,226
Gold Coast Hospital and Health Service 630,618,594 50,219,767 680,838,361
Mackay Hospital and Health Service 152,003,232 35,339,067 187,342,298
Mater Misericordiae Health Service Brisbane 252,756,635 6,614,511 259,371,145
Metro North Hospital and Health Service 1,215,673,156 94,211,306 1,309,884,462
Metro South Hospital and Health Service 1,086,699,530 120,335,861 1,207,035,391
North West Hospital and Health Service 49,452,751 24,853,594 74,306,345
South West Hospital and Health Service 0 43,548,700 43,548,700
Sunshine Coast Hospital and Health Service 469,461,872 35,326,149 504,788,021
Torres and Cape Hospital and Health Service 0 46,120,363 46,120,363
Townsville Hospital and Health Service 372,827,483 81,933,674 454,761,157
West Moreton Hospital and Health Service 204,443,501 82,981,942 287,425,442
Wide Bay Hospital and Health Service 271,548,040 35,796,761 307,344,801
Total 5,787,488,203 902,951,852 6,690,440,054

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, February 2017

This table shows estimated state or territory hospital activity for activity-based funding services expressed as NWAU for February 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 65,348 98,022
Central Queensland Hospital and Health Service 4,520 36,158 54,237
Children's Health Queensland Hospital and Health Service 5,565 44,524 66,786
Darling Downs Hospital and Health Service 5,351 42,805 64,207
Gold Coast Hospital and Health Service 14,901 119,208 178,813
Mackay Hospital and Health Service 3,429 27,434 41,152
Mater Misericordiae Health Service Brisbane 5,743 45,928 68,757
Metro North Hospital and Health Service 26,904 215,234 322,851
Metro South Hospital and Health Service 23,771 190,165 285,247
North West Hospital and Health Service 953 7,624 11,436
Sunshine Coast Hospital and Health Service 10,153 81,225 121,837
Townsville Hospital and Health Service 8,507 68,054 102,081
West Moreton Hospital and Health Service 4,993 39,942 59,913
Wide Bay Hospital and Health Service 5,978 47,824 71,736
Total 128,936 1,031,473 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.