Queensland report, January 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 January 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, January 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 January 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, January 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 January 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
581,413,340 581,387,604 0 0 581,387,604
Other state/territory funding 0 0 0 0
Total 885,557,742 844,983,405 34,335,458 6,213,143 0 885,532,006

See definitions and explanatory notes following table 1b.

Table 1b – State pool account transactions YTD – Queensland, January 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 January 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
1,984,269,192 1,984,269,192 1,984,269,192
Commonwealth
Block funding
240,348,209 240,348,209 240,348,209
Commonwealth
Other funding
43,491,999 43,491,999 43,491,999
Total C'wealth
funding
2,268,109,400 1,984,269,192 240,348,209 43,491,999 2,268,109,400
QLD
funding
3,177,135,837 3,176,905,577 0 0 3,176,905,577
Other state/territory funding 0 0 0 0
Total 5,445,245,237 5,161,174,769 240,348,209 43,491,999 0 5,445,014,977

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, January 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 January 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 104,817,712 104,817,712
Total 139,153,170 139,153,170 0 139,153,170

See explanatory notes following table 2b.

Table 2b – State managed fund transactions YTD – Queensland, January 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 January 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 240,348,209 240,348,209
State/territory Block funding 559,047,266 559,047,267
Total 799,395,476 799,395,476 0 799,395,476

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, January 2017

This table shows NHR funding and payments by service category on both a monthly and year-to-date (YTD) basis for Queensland for January 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 533,308,727 533,308,727 3,257,203,209 3,257,203,209
Admitted mental health 45,185,183 45,185,183 276,194,819 276,194,819
Sub-acute 49,424,424 49,424,424 300,567,570 300,567,570
Emergency department 110,915,751 110,915,751 677,904,785 677,904,785
Non-admitted 106,149,319 106,149,319 649,304,387 649,304,387
Total ABF (Pool) 844,983,405 844,983,405 5,161,174,769 5,161,174,769
Block
Small rural hospitals 68,612,468 68,335,623 399,349,771 397,411,853
Teaching, training & research 32,964,438 32,964,438 181,845,522 181,845,522
Non-admitted mental health 36,796,083 37,125,204 213,601,057 215,904,903
Other non-admitted services 780,181 727,905 4,599,125 4,233,198
Total Block (SMF) 139,153,170 139,153,170 799,395,476 799,395,476
Other
Public health funding 6,213,143 6,213,143 43,491,999 43,491,999
Overdeposit 0 0 0 0
Cross-border 0 0 0 0
Interest 25,736 0 230,260 0
Total Other (Pool) 6,238,879 6,213,143 43,722,258 43,491,999
Grand Total 990,375,454 990,349,718 6,004,292,503 6,004,062,244

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, January 2017

This table shows NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland during January 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 49,493,952 8,940,769 58,434,721
Central Queensland Hospital and Health Service 29,919,454 7,931,830 37,851,284
Central West Hospital and Health Service 0 2,710,823 2,710,823
Children's Health Queensland Hospital and Health Service 41,246,307 1,939,514 43,185,821
Darling Downs Hospital and Health Service 32,304,772 16,140,825 48,445,597
Gold Coast Hospital and Health Service 91,401,123 7,852,430 99,253,552
Mackay Hospital and Health Service 20,751,183 5,421,816 26,172,999
Mater Misericordiae Health Service Brisbane 37,446,597 1,063,478 38,510,074
Metro North Hospital and Health Service 176,085,282 14,735,691 190,820,972
Metro South Hospital and Health Service 162,359,622 18,640,765 181,000,388
North West Hospital and Health Service 7,294,490 3,790,000 11,084,489
South West Hospital and Health Service 0 6,619,645 6,619,645
Sunshine Coast Hospital and Health Service 69,201,336 5,471,154 74,672,490
Torres and Cape Hospital and Health Service 0 7,010,552 7,010,552
Townsville Hospital and Health Service 54,594,291 12,589,011 67,183,302
West Moreton Hospital and Health Service 29,978,207 12,676,831 42,655,038
Wide Bay Hospital and Health Service 39,162,131 5,511,689 44,673,820
Total 841,238,745 139,046,822 980,285,568

See explanatory notes below table 4b.

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

This table shows YTD NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland as at January 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 320,974,252 51,341,065 372,315,316
Central Queensland Hospital and Health Service 179,625,992 45,808,461 225,434,453
Central West Hospital and Health Service 0 15,765,033 15,765,033
Children's Health Queensland Hospital and Health Service 265,932,788 10,861,181 276,793,969
Darling Downs Hospital and Health Service 197,340,576 93,503,979 290,844,555
Gold Coast Hospital and Health Service 559,517,953 44,467,282 603,985,235
Mackay Hospital and Health Service 135,819,918 31,256,494 167,076,412
Mater Misericordiae Health Service Brisbane 223,776,637 5,866,585 229,643,222
Metro North Hospital and Health Service 1,079,864,382 83,421,319 1,163,285,701
Metro South Hospital and Health Service 962,422,089 106,493,473 1,068,915,561
North West Hospital and Health Service 43,935,420 21,974,662 65,910,082
South West Hospital and Health Service 0 38,497,132 38,497,132
Sunshine Coast Hospital and Health Service 416,451,321 31,262,176 447,713,497
Torres and Cape Hospital and Health Service 0 40,770,486 40,770,486
Townsville Hospital and Health Service 330,652,774 72,474,399 403,127,173
West Moreton Hospital and Health Service 181,076,854 73,377,228 254,454,083
Wide Bay Hospital and Health Service 241,406,149 31,667,864 273,074,013
Total 5,138,797,106 798,808,817 5,937,605,923

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, January 2017

This table shows estimated state or territory hospital activity for activity-based funding services expressed as NWAU for January 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 57,179 98,022
Central Queensland Hospital and Health Service 4,520 31,638 54,237
Children's Health Queensland Hospital and Health Service 5,565 38,958 66,786
Darling Downs Hospital and Health Service 5,351 37,454 64,207
Gold Coast Hospital and Health Service 14,901 104,307 178,813
Mackay Hospital and Health Service 3,429 24,005 41,152
Mater Misericordiae Health Service Brisbane 5,743 40,198 68,757
Metro North Hospital and Health Service 26,904 188,330 322,851
Metro South Hospital and Health Service 23,771 166,394 285,247
North West Hospital and Health Service 953 6,671 11,436
Sunshine Coast Hospital and Health Service 10,153 71,072 121,837
Townsville Hospital and Health Service 8,507 59,547 102,081
West Moreton Hospital and Health Service 4,993 34,949 59,913
Wide Bay Hospital and Health Service 5,978 41,846 71,736
Total 128,936 902,550 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.