Queensland report, February 2018

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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 2018 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 2018

For the basis of the Commonwealth contribution to NHR funding, see Basis of Commonwealth NHR funding, 2017-18.

The basis used to determine NHR payments to LHNs in Queensland for February 2018 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:

36 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.

83 public hospitals, predominantly small regional and rural hospitals, and 4 specialist mental health facilities are funded through block funding arrangements which take account of hospital size and location. These are based on 2015-16 reported expenditure (net of depreciation) indexed to 2017-18 levels.

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.

The purchasing model determines the volume and value of services that the Department agrees to purchase from each HHS through the service agreement. The model reflects key priority areas for investment which is informed through a range of planning models, growth projections and performance objectives for each HHS.

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 2018

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 2018.

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
287,201,292 287,201,292 287,201,292
Commonwealth
Block funding
35,801,215 35,801,215 35,801,215
Commonwealth
Other funding
6,466,807 6,466,807 6,466,807
Total C'wealth
funding
329,469,314 287,201,292 35,801,215 6,466,807 329,469,314
QLD
funding
460,032,793 456,894,066 0 3,100,000 459,994,066
Other state/territory funding 4,900,000 0 4,900,000 4,900,000
Total 794,402,107 744,095,357 35,801,215 11,366,807 3,100,000 794,363,380

See definitions and explanatory notes following table 1b.

Table 1b – State pool account transactions YTD – Queensland, February 2018

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 2018.

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
2,297,663,084 2,297,663,084 2,297,663,084
Commonwealth
Block funding
286,409,723 286,409,723 286,409,723
Commonwealth
Other funding
51,681,706 51,681,705 51,681,705
Total C'wealth
funding
2,635,754,513 2,297,663,084 286,409,723 51,681,705 2,635,754,512
QLD
funding
4,165,912,851 4,140,837,271 0 24,800,000 4,165,637,271
Other state/territory funding 39,200,000 0 39,200,000 39,200,000
Total 6,840,867,364 6,438,500,355 286,409,723 90,881,705 24,800,000 6,840,591,783

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 2018

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 2018.

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 35,801,215 35,801,215
State/territory Block funding 84,294,068 84,294,068
Total 120,095,283 120,095,283 0 120,095,283

See explanatory notes following table 2b.

Table 2b – State managed fund transactions YTD – Queensland, February 2018

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 2018.

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 286,409,723 286,409,723
State/territory Block funding 725,885,423 725,885,423
Total 1,012,295,146 1,012,295,146 0 1,012,295,146

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 2018

This table shows NHR funding and payments by service category on both a monthly and year-to-date (YTD) basis for Queensland for February 2018. 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 476,485,853 476,485,853 4,125,198,320 4,125,198,320
Admitted mental health 40,160,235 40,160,235 348,700,615 348,700,615
Sub-acute 36,100,951 36,100,951 310,736,743 310,736,743
Emergency department 94,598,583 94,598,583 818,145,923 818,145,922
Non-admitted 96,749,735 96,749,735 835,718,755 835,718,754
Total ABF (Pool) 744,095,357 744,095,357 6,438,500,355 6,438,500,355
Block
Small rural hospitals 58,625,910 58,625,910 491,984,622 491,984,622
Teaching, training & research 25,703,220 25,703,220 227,327,670 227,327,670
Non-admitted mental health 32,656,690 32,656,690 283,966,521 283,966,521
Other non-admitted services 3,109,464 3,109,464 9,016,333 9,016,333
Total Block (SMF) 120,095,283 120,095,283 1,012,295,146 1,012,295,146
Other
Public health funding 6,466,807 6,466,807 51,681,706 51,681,705
Overdeposit 0 0 0 0
Cross-border 8,000,000 8,000,000 64,000,000 64,000,000
Interest 38,727 0 275,580 0
Total Other (Pool) 14,505,534 14,466,807 115,957,286 115,681,705
Grand Total 878,696,175 878,657,448 7,566,752,787 7,566,477,206

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 2018

This table shows NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland during February 2018.

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 46,451,622 8,446,722 54,898,343
Central Queensland Hospital and Health Service 25,170,360 7,009,193 32,179,552
Central West Hospital and Health Service 0 2,354,077 2,354,077
Children's Health Queensland Hospital and Health Service 27,993,028 5,151,472 33,144,500
Darling Downs Hospital and Health Service 29,281,918 12,518,294 41,800,212
Gold Coast Hospital and Health Service 80,992,407 6,724,203 87,716,610
Mackay Hospital and Health Service 19,648,517 4,819,606 24,468,122
Mater Misericordiae Health Service Brisbane 32,320,565 874,875 33,195,440
Metro North Hospital and Health Service 157,210,338 13,458,413 170,668,751
Metro South Hospital and Health Service 135,121,992 14,793,527 149,915,518
North West Hospital and Health Service 7,115,183 3,240,784 10,355,968
South West Hospital and Health Service 0 5,411,924 5,411,924
Sunshine Coast Hospital and Health Service 67,726,782 4,870,241 72,597,023
Torres and Cape Hospital and Health Service 0 5,982,555 5,982,555
Townsville Hospital and Health Service 51,866,892 9,817,984 61,684,876
West Moreton Hospital and Health Service 26,882,335 10,063,234 36,945,569
Wide Bay Hospital and Health Service 33,081,364 4,470,692 37,552,056
Total 740,863,301 120,007,796 860,871,097

See explanatory notes below table 4b.

Table 4b – NHR contributions by local hospital network YTD – Queensland, February 2018

This table shows YTD NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland as at February 2018.

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 400,075,248 73,614,171 473,689,419
Central Queensland Hospital and Health Service 220,875,946 60,980,211 281,856,157
Central West Hospital and Health Service 0 20,431,403 20,431,403
Children's Health Queensland Hospital and Health Service 295,997,552 17,283,021 313,280,573
Darling Downs Hospital and Health Service 254,839,525 108,816,417 363,655,942
Gold Coast Hospital and Health Service 701,637,346 58,786,573 760,423,918
Mackay Hospital and Health Service 166,362,430 41,125,217 207,487,647
Mater Misericordiae Health Service Brisbane 280,239,359 7,737,697 287,977,057
Metro North Hospital and Health Service 1,351,757,499 117,056,662 1,468,814,160
Metro South Hospital and Health Service 1,165,613,436 128,777,959 1,294,391,394
North West Hospital and Health Service 57,231,432 27,425,568 84,657,000
South West Hospital and Health Service 0 46,967,783 46,967,783
Sunshine Coast Hospital and Health Service 585,090,503 42,459,320 627,549,824
Torres and Cape Hospital and Health Service 0 51,922,448 51,922,448
Townsville Hospital and Health Service 419,258,257 83,848,340 503,106,597
West Moreton Hospital and Health Service 227,721,137 85,336,623 313,057,760
Wide Bay Hospital and Health Service 283,776,749 38,951,964 322,728,713
Total 6,410,476,419 1,011,521,376 7,421,997,795

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 2018

This table shows estimated state or territory hospital activity for activity-based funding services expressed as NWAU for February 2018, 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 2017-18
Cairns and Hinterland Hospital and Health Service 9,468 75,749 113,625
Central Queensland Hospital and Health Service 4,818 38,547 57,771
Children's Health Queensland Hospital and Health Service 6,138 49,097 73,777
Darling Downs Hospital and Health Service 6,557 52,449 78,672
Gold Coast Hospital and Health Service 15,918 127,351 190,266
Mackay Hospital and Health Service 4,085 32,676 49,013
Mater Misericordiae Health Service Brisbane 6,514 52,123 78,190
Metro North Hospital and Health Service 31,636 253,087 378,930
Metro South Hospital and Health Service 25,543 204,345 304,680
North West Hospital and Health Service 985 7,879 11,818
Sunshine Coast Hospital and Health Service 11,471 91,763 137,428
Townsville Hospital and Health Service 9,700 77,604 116,204
West Moreton Hospital and Health Service 5,373 42,981 64,309
Wide Bay Hospital and Health Service 6,594 52,749 79,123
Total 144,800 1,158,401 1,733,806

Note: Queensland has revised the purchased NWAU estimates as part of the mid-year revision to LHN Service Agreements. The revised NWAU are yet to be reflected in the Administrator reporting due to the timing of adjusting the data in the National Data Model. Therefore the NWAU in the Administrator reporting may be different to the NWAU in the published Service Agreements

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.