Queensland report, May 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 May 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, May 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 May 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, May 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 May 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
6,152,721 6,152,721 6,152,721
Total C'wealth
funding
335,166,365 293,513,572 35,500,072 6,152,721 335,166,365
QLD
funding
497,889,914 494,830,042 0 3,000,000 497,830,042
Other state/territory funding 4,700,000 0 4,700,000 4,700,000
Total 837,756,279 788,343,613 35,500,072 10,852,721 3,000,000 837,696,406

See definitions and explanatory notes following table 1b.

Table 1b – State pool account transactions YTD – Queensland, May 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 May 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
3,068,570,167 3,068,570,167 3,068,570,167
Commonwealth
Block funding
380,019,270 380,019,270 380,019,270
Commonwealth
Other funding
68,163,304 68,163,304 68,163,304
Total C'wealth
funding
3,516,752,741 3,068,570,167 380,019,270 68,163,304 3,516,752,741
QLD
funding
5,022,659,908 4,989,285,344 0 33,000,000 5,022,285,344
Other state/territory funding 51,700,000 0 51,700,000 51,700,000
Total 8,591,112,649 8,057,855,510 380,019,270 119,863,304 33,000,000 8,590,738,085

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, May 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 May 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 69,360,224 69,360,224
Total 104,860,296 104,860,296 0 104,860,296

See explanatory notes following table 2b.

Table 2b – State managed fund transactions YTD – Queensland, May 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 May 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 380,019,270 380,019,270
State/territory Block funding 843,051,558 843,051,558
Total 1,223,070,828 1,223,070,828 0 1,223,070,828

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, May 2017

This table shows NHR funding and payments by service category on both a monthly and year-to-date (YTD) basis for Queensland for May 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 497,169,632 497,169,632 5,084,139,286 5,084,139,286
Admitted mental health 43,329,781 43,329,781 432,445,492 432,445,492
Sub-acute 45,227,510 45,227,510 470,270,210 470,270,210
Emergency department 101,873,169 101,873,169 1,057,391,937 1,057,391,937
Non-admitted 100,743,522 100,743,522 1,013,608,586 1,013,608,586
Total ABF (Pool) 788,343,613 788,343,613 8,057,855,510 8,057,855,510
Block
Small rural hospitals 51,543,320 53,629,681 610,282,427 609,482,123
Teaching, training & research 24,091,307 22,091,307 276,318,383 276,318,383
Non-admitted mental health 28,620,676 28,574,633 329,472,992 330,824,411
Other non-admitted services 604,994 564,675 6,997,025 6,445,910
Total Block (SMF) 104,860,296 104,860,296 1,223,070,828 1,223,070,828
Other
Public health funding 6,152,721 6,152,721 68,163,304 68,163,304
Overdeposit 0 0 0 0
Cross-border 7,700,000 7,700,000 84,700,000 84,700,000
Interest 59,872 0 374,564 0
Total Other (Pool) 13,912,593 13,852,721 153,237,869 152,863,304
Grand Total 907,116,502 907,056,630 9,434,164,207 9,433,789,643

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, May 2017

This table shows NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland during May 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 49,726,934 5,266,483 54,993,416
Central Queensland Hospital and Health Service 24,332,377 6,061,172 30,393,549
Central West Hospital and Health Service 0 2,102,932 2,102,932
Children's Health Queensland Hospital and Health Service 41,376,470 1,384,304 42,760,774
Darling Downs Hospital and Health Service 25,661,585 12,416,494 38,078,079
Gold Coast Hospital and Health Service 74,378,532 5,746,658 80,125,190
Mackay Hospital and Health Service 17,218,215 4,127,030 21,345,245
Mater Misericordiae Health Service Brisbane 27,875,231 776,793 28,652,024
Metro North Hospital and Health Service 238,135,475 10,776,880 248,912,354
Metro South Hospital and Health Service 130,408,660 13,910,311 144,318,971
North West Hospital and Health Service 5,594,932 4,102,457 9,697,389
South West Hospital and Health Service 0 5,135,210 5,135,210
Sunshine Coast Hospital and Health Service 55,545,199 4,084,419 59,629,618
Torres and Cape Hospital and Health Service 0 5,438,459 5,438,459
Townsville Hospital and Health Service 40,277,816 9,553,691 49,831,507
West Moreton Hospital and Health Service 24,338,745 9,734,583 34,073,329
Wide Bay Hospital and Health Service 30,685,920 4,164,741 34,850,661
Total 785,556,090 104,782,617 890,338,707

See explanatory notes below table 4b.

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

This table shows YTD NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland as at May 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 504,230,910 84,572,026 588,802,936
Central Queensland Hospital and Health Service 285,177,052 69,692,090 354,869,142
Central West Hospital and Health Service 0 24,005,498 24,005,498
Children's Health Queensland Hospital and Health Service 401,540,584 16,459,031 417,999,615
Darling Downs Hospital and Health Service 301,500,460 142,309,814 443,810,274
Gold Coast Hospital and Health Service 860,450,070 67,483,047 927,933,118
Mackay Hospital and Health Service 206,764,545 47,542,326 254,306,871
Mater Misericordiae Health Service Brisbane 343,563,033 8,872,722 352,435,755
Metro North Hospital and Health Service 1,725,426,178 126,592,429 1,852,018,607
Metro South Hospital and Health Service 1,507,520,982 161,795,104 1,669,316,086
North West Hospital and Health Service 66,506,466 34,629,775 101,136,241
South West Hospital and Health Service 0 58,619,763 58,619,763
Sunshine Coast Hospital and Health Service 654,395,406 47,497,625 701,893,031
Torres and Cape Hospital and Health Service 0 62,081,409 62,081,409
Townsville Hospital and Health Service 514,048,656 110,217,084 624,265,740
West Moreton Hospital and Health Service 279,337,980 111,666,211 391,004,191
Wide Bay Hospital and Health Service 373,036,886 48,147,603 421,184,489
Total 8,023,499,207 1,222,183,556 9,245,682,763

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, May 2017

This table shows estimated state or territory hospital activity for activity-based funding services expressed as NWAU for May 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 14,462 96,146 94,808
Central Queensland Hospital and Health Service 8,769 53,967 53,775
Children's Health Queensland Hospital and Health Service 11,305 66,959 67,083
Darling Downs Hospital and Health Service 10,596 64,102 64,028
Gold Coast Hospital and Health Service 28,354 177,365 176,331
Mackay Hospital and Health Service 6,375 40,668 40,323
Mater Misericordiae Health Service Brisbane 12,126 69,540 70,000
Metro North Hospital and Health Service 74,183 343,226 357,780
Metro South Hospital and Health Service 45,874 283,579 282,388
North West Hospital and Health Service 1,905 11,435 11,435
Sunshine Coast Hospital and Health Service 19,270 120,801 120,061
Townsville Hospital and Health Service 19,005 104,072 105,495
West Moreton Hospital and Health Service 9,498 59,426 59,077
Wide Bay Hospital and Health Service 11,947 71,727 71,721
Total 273,669 1,563,014 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.