Queensland report, October 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 October 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, October 2018

For the basis of the Commonwealth contribution to NHR funding, see Basis of Commonwealth NHR funding, 2018-19.

The basis used to determine NHR payments to LHNs in Queensland for October 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 2017-18 reported expenditure (net of depreciation) indexed to 2018-19 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, October 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 October 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
520,326,940 520,326,940 520,326,940
Commonwealth
Block funding
42,823,393 42,823,393 42,823,393
Commonwealth
Other funding
6,749,825 6,749,825 6,749,825
Total C'wealth
funding
569,900,159 520,326,940 42,823,393 6,749,825 569,900,159
QLD
funding
264,961,973 261,707,881 0 3,200,000 264,907,881
Other state/territory funding 5,000,000 0 5,000,000 5,000,000
Total 839,862,132 782,034,821 42,823,393 11,749,825 3,200,000 839,808,040

See definitions and explanatory notes following table 1b.

Table 1b – State pool account transactions YTD – Queensland, October 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 October 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
1,436,922,568 1,436,922,568 1,436,922,568
Commonwealth
Block funding
158,490,687 158,490,687 158,490,687
Commonwealth
Other funding
27,141,363 27,141,363 27,141,363
Total C'wealth
funding
1,622,554,617 1,436,922,568 158,490,687 27,141,363 1,622,554,617
QLD
funding
1,942,778,445 1,929,821,013 0 12,800,000 1,942,621,013
Other state/territory funding 20,000,000 0 20,000,000 20,000,000
Total 3,585,333,062 3,366,743,581 158,490,687 47,141,363 12,800,000 3,585,175,630

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, October 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 October 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 42,823,393 42,823,393
State/territory Block funding 84,245,769 84,245,769
Total 127,069,162 127,069,162 0 127,069,162

See explanatory notes following table 2b.

Table 2b – State managed fund transactions YTD – Queensland, October 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 October 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 158,490,687 158,490,687
State/territory Block funding 388,763,102 388,763,102
Total 547,253,789 547,253,789 0 547,253,789

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, October 2018

This table shows NHR funding and payments by service category on both a monthly and year-to-date (YTD) basis for Queensland for October 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 490,086,016 490,086,016 2,100,290,563 2,100,290,563
Admitted mental health 38,788,900 38,788,900 152,451,377 152,451,377
Sub-acute 44,206,180 44,206,180 174,315,085 174,315,085
Emergency department 99,933,846 99,933,846 447,095,445 447,095,445
Non-admitted 109,019,879 109,019,879 492,591,111 492,591,111
Total ABF (Pool) 782,034,821 782,034,821 3,366,743,581 3,366,743,581
Block
Small rural hospitals 60,090,703 60,090,703 262,014,935 262,014,935
Teaching, training & research 27,296,969 27,296,969 120,444,458 120,444,458
Non-admitted mental health 33,908,962 33,908,962 152,513,912 152,513,912
Other non-admitted services 5,772,528 5,772,528 12,280,484 12,280,484
Total Block (SMF) 127,069,162 127,069,162 547,253,789 547,253,789
Other
Public health funding 6,749,825 6,749,825 27,141,363 27,141,363
Overdeposit 0 0 0 0
Cross-border 8,200,000 8,200,000 32,800,000 32,800,000
Interest 54,092 0 157,432 0
Total Other (Pool) 15,003,918 14,949,825 60,098,795 59,941,363
Grand Total 924,107,901 924,053,809 3,974,096,164 3,973,938,732

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, October 2018

This table shows NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland during October 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 45,451,620 10,553,372 56,004,992
Central Queensland Hospital and Health Service 24,595,281 7,882,460 32,477,740
Central West Hospital and Health Service 0 3,646,543 3,646,543
Children's Health Queensland Hospital and Health Service 33,049,803 3,619,987 36,669,790
Darling Downs Hospital and Health Service 30,595,986 14,078,515 44,674,501
Gold Coast Hospital and Health Service 110,470,090 6,947,296 117,417,386
Mackay Hospital and Health Service 19,180,762 5,594,830 24,775,592
Mater Misericordiae Health Service Brisbane 40,641,422 988,308 41,629,730
Metro North Hospital and Health Service 150,265,529 14,241,809 164,507,338
Metro South Hospital and Health Service 128,776,063 13,279,682 142,055,744
North West Hospital and Health Service 5,201,908 2,806,004 8,007,912
Queensland Virtual LHN 8,532,616 0 8,532,616
South West Hospital and Health Service 0 5,796,481 5,796,481
Sunshine Coast Hospital and Health Service 64,355,245 5,333,350 69,688,595
Torres and Cape Hospital and Health Service 0 6,085,827 6,085,827
Townsville Hospital and Health Service 45,616,789 11,293,002 56,909,791
West Moreton Hospital and Health Service 40,134,428 10,068,659 50,203,087
Wide Bay Hospital and Health Service 31,103,139 4,754,207 35,857,346
Total 777,970,679 126,970,332 904,941,010

See explanatory notes below table 4b.

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

This table shows YTD NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland as at October 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 211,975,548 45,854,357 257,829,905
Central Queensland Hospital and Health Service 114,194,678 34,231,349 148,426,027
Central West Hospital and Health Service 0 15,824,968 15,824,968
Children's Health Queensland Hospital and Health Service 147,454,989 11,147,865 158,602,854
Darling Downs Hospital and Health Service 143,824,003 61,142,493 204,966,497
Gold Coast Hospital and Health Service 381,968,880 29,534,255 411,503,135
Mackay Hospital and Health Service 89,500,346 24,328,747 113,829,093
Mater Misericordiae Health Service Brisbane 155,172,114 4,361,381 159,533,495
Metro North Hospital and Health Service 688,933,768 62,197,396 751,131,164
Metro South Hospital and Health Service 600,325,079 57,899,157 658,224,235
North West Hospital and Health Service 25,268,076 12,191,712 37,459,788
Queensland Virtual LHN 14,273,403 0 14,273,403
South West Hospital and Health Service 0 25,152,931 25,152,931
Sunshine Coast Hospital and Health Service 293,576,092 23,250,214 316,826,306
Torres and Cape Hospital and Health Service 0 26,404,941 26,404,941
Townsville Hospital and Health Service 209,188,977 49,118,417 258,307,394
West Moreton Hospital and Health Service 128,585,317 43,512,205 172,097,522
Wide Bay Hospital and Health Service 146,985,099 20,665,262 167,650,361
Total 3,351,226,369 546,817,651 3,898,044,020

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, October 2018

This table shows estimated state or territory hospital activity for activity-based funding services expressed as NWAU for October 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 2018-19
Cairns and Hinterland Hospital and Health Service 9,516 39,343 118,030
Central Queensland Hospital and Health Service 5,244 21,230 63,691
Children's Health Queensland Hospital and Health Service 6,210 26,016 78,048
Darling Downs Hospital and Health Service 6,814 27,053 81,160
Gold Coast Hospital and Health Service 19,339 70,528 211,585
Mackay Hospital and Health Service 4,078 17,104 51,312
Mater Misericordiae Health Service Brisbane 6,330 28,206 84,618
Metro North Hospital and Health Service 32,044 131,995 395,986
Metro South Hospital and Health Service 24,903 105,908 317,724
North West Hospital and Health Service 1,426 4,642 13,925
Queensland Virtual LHN 6,200 8,887 26,661
Sunshine Coast Hospital and Health Service 10,986 48,636 145,907
Townsville Hospital and Health Service 9,833 40,508 121,524
West Moreton Hospital and Health Service 5,961 24,298 72,895
Wide Bay Hospital and Health Service 6,617 27,644 82,933
Total 155,500 622,000 1,866,000

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.