Queensland report, June 2017

Print friendly version (PDF, 515 kB)

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 June 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, June 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 June 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, June 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 June 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
293,513,572 293,513,572 293,513,572
Commonwealth
Block funding
35,500,072 35,500,072 35,500,072
Commonwealth
Other funding
5,192,972 5,192,972 5,192,972
Total C'wealth
funding
334,206,615 293,513,572 35,500,072 5,192,972 334,206,615
QLD
funding
554,772,152 551,741,354 405,363 3,000,000 555,146,716
Other state/territory funding 4,700,000 0 4,700,000 4,700,000
Total 893,678,767 845,254,925 35,500,072 10,298,334 3,000,000 894,053,332

See definitions and explanatory notes following table 1b.

Table 1b – State pool account transactions YTD – Queensland, June 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 June 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
3,362,083,738 3,362,083,738 3,362,083,738
Commonwealth
Block funding
415,519,342 415,519,342 415,519,342
Commonwealth
Other funding
73,356,276 73,356,276 73,356,276
Total C'wealth
funding
3,850,959,357 3,362,083,738 415,519,342 73,356,276 3,850,959,357
QLD
funding
5,577,432,060 5,541,026,697 405,363 36,000,000 5,577,432,060
Other state/territory funding 56,400,000 0 56,400,000 56,400,000
Total 9,484,791,417 8,903,110,436 415,519,342 130,161,639 36,000,000 9,484,791,417

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, June 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 June 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 63,490,610 63,490,610
Total 98,990,682 98,990,682 0 98,990,682

See explanatory notes following table 2b.


Table 2b – State managed fund transactions YTD – Queensland, June 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 June 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 415,519,342 415,519,342
State/territory Block funding 906,542,168 906,542,168
Total 1,322,061,510 1,322,061,510 0 1,322,061,510

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, June 2017

This table shows NHR funding and payments by service category on both a monthly and year-to-date (YTD) basis for Queensland for June 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 532,858,503 532,858,503 5,616,997,789 5,616,997,788
Admitted mental health 45,007,531 45,007,531 477,453,023 477,453,023
Sub-acute 48,546,293 48,546,293 518,816,503 518,816,503
Emergency department 111,668,144 111,668,144 1,169,060,081 1,169,060,081
Non-admitted 107,174,455 107,174,455 1,120,783,040 1,120,783,040
Total ABF (Pool) 845,254,925 845,254,925 8,903,110,436 8,903,110,436
Block
Small rural hospitals 47,824,698 48,670,350 658,107,125 658,152,473
Teaching, training & research 23,020,671 23,020,671 299,339,055 299,339,055
Non-admitted mental health 27,540,319 26,734,985 357,013,310 357,559,396
Other non-admitted services 604,994 564,676 7,602,020 7,010,586
Total Block (SMF) 98,990,682 98,990,682 1,322,061,510 1,322,061,510
Other
Public health funding 5,192,972 5,192,972 73,356,276 73,356,276
Overdeposit 0 0 0 0
Cross-border 7,700,000 7,700,000 92,400,000 92,400,000
Interest 30,798 405,363 405,363 405,363
Total Other (Pool) 12,923,770 13,298,334 166,161,639 166,161,639
Grand Total 957,169,378 957,543,942 10,391,333,585 10,391,333,585

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, June 2017

This table shows NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland during June 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 55,847,789 228,572 56,076,361
Central Queensland Hospital and Health Service 29,480,212 6,061,188 35,541,400
Central West Hospital and Health Service 0 2,102,932 2,102,932
Children's Health Queensland Hospital and Health Service 42,047,269 1,384,319 43,431,588
Darling Downs Hospital and Health Service 40,971,447 12,416,496 53,387,942
Gold Coast Hospital and Health Service 87,348,623 5,746,639 93,095,262
Mackay Hospital and Health Service 28,351,621 4,127,019 32,478,640
Mater Misericordiae Health Service Brisbane 42,652,252 2,166,998 44,819,250
Metro North Hospital and Health Service 183,255,845 10,778,834 194,034,679
Metro South Hospital and Health Service 160,777,489 13,910,328 174,687,817
North West Hospital and Health Service 11,556,490 1,739,553 13,296,043
South West Hospital and Health Service 0 5,135,209 5,135,209
Sunshine Coast Hospital and Health Service 37,431,429 4,084,420 41,515,848
Torres and Cape Hospital and Health Service 0 5,438,456 5,438,456
Townsville Hospital and Health Service 58,942,361 9,553,694 68,496,055
West Moreton Hospital and Health Service 26,480,034 9,734,586 36,214,620
Wide Bay Hospital and Health Service 35,846,840 4,164,741 40,011,581
Total 840,989,700 98,773,982 939,763,683

See explanatory notes below table 4b.

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

This table shows YTD NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland as at June 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 560,078,699 84,800,598 644,879,297
Central Queensland Hospital and Health Service 314,657,264 75,753,278 390,410,542
Central West Hospital and Health Service 0 26,108,430 26,108,430
Children's Health Queensland Hospital and Health Service 443,587,853 17,843,350 461,431,203
Darling Downs Hospital and Health Service 342,471,907 154,726,310 497,198,216
Gold Coast Hospital and Health Service 947,798,693 73,229,686 1,021,028,379
Mackay Hospital and Health Service 235,116,166 51,669,345 286,785,511
Mater Misericordiae Health Service Brisbane 386,215,285 11,039,720 397,255,005
Metro North Hospital and Health Service 1,908,682,023 137,371,263 2,046,053,286
Metro South Hospital and Health Service 1,668,298,471 175,705,432 1,844,003,902
North West Hospital and Health Service 78,062,955 36,369,328 114,432,284
South West Hospital and Health Service 0 63,754,972 63,754,972
Sunshine Coast Hospital and Health Service 691,826,835 51,582,045 743,408,879
Torres and Cape Hospital and Health Service 0 67,519,865 67,519,865
Townsville Hospital and Health Service 572,991,017 119,770,778 692,761,794
West Moreton Hospital and Health Service 305,818,014 121,400,797 427,218,810
Wide Bay Hospital and Health Service 408,883,726 52,312,344 461,196,070
Total 8,864,488,907 1,320,957,538 10,185,446,445

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, June 2017

This table shows estimated state or territory hospital activity for activity-based funding services expressed as NWAU for June 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 -1,338 94,808 94,808
Central Queensland Hospital and Health Service -192 53,775 53,775
Children's Health Queensland Hospital and Health Service 124 67,083 67,083
Darling Downs Hospital and Health Service -75 64,028 64,028
Gold Coast Hospital and Health Service -1,034 176,331 176,331
Mackay Hospital and Health Service -345 40,323 40,323
Mater Misericordiae Health Service Brisbane 460 70,000 70,000
Metro North Hospital and Health Service 14,554 357,780 357,780
Metro South Hospital and Health Service -1,191 282,388 282,388
North West Hospital and Health Service 0 11,435 11,435
Sunshine Coast Hospital and Health Service -740 120,061 120,061
Townsville Hospital and Health Service 1,422 105,495 105,495
West Moreton Hospital and Health Service -349 59,077 59,077
Wide Bay Hospital and Health Service -6 71,721 71,721
Total 11,291 1,574,306 1,574,306

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.