Queensland report, September 2018

Print friendly version (PDF, 351 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 September 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, September 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 September 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, September 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 September 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
305,531,876 305,531,876 305,531,876
Commonwealth
Block funding
38,555,765 38,555,765 38,555,765
Commonwealth
Other funding
6,797,179 6,797,179 6,797,179
Total C'wealth
funding
350,884,819 305,531,876 38,555,765 6,797,179 350,884,819
QLD
funding
487,710,434 484,478,734 0 3,200,000 487,678,734
Other state/territory funding 5,000,000 0 5,000,000 5,000,000
Total 843,595,253 790,010,610 38,555,765 11,797,179 3,200,000 843,563,554

See definitions and explanatory notes following table 1b.

Table 1b – State pool account transactions YTD – Queensland, September 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 September 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
916,595,628 916,595,628 916,595,628
Commonwealth
Block funding
115,667,294 115,667,294 115,667,294
Commonwealth
Other funding
20,391,537 20,391,537 20,391,537
Total C'wealth
funding
1,052,654,458 916,595,628 115,667,294 20,391,537 1,052,654,458
QLD
funding
1,677,816,472 1,668,113,132 0 9,600,000 1,677,713,132
Other state/territory funding 15,000,000 0 15,000,000 15,000,000
Total 2,745,470,930 2,584,708,760 115,667,294 35,391,537 9,600,000 2,745,367,590

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, September 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 September 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 38,555,765 38,555,765
State/territory Block funding 87,007,415 87,007,415
Total 125,563,179 125,563,179 0 125,563,179

See explanatory notes following table 2b.

Table 2b – State managed fund transactions YTD – Queensland, September 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 September 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 115,667,294 115,667,294
State/territory Block funding 304,517,333 304,517,333
Total 420,184,627 420,184,627 0 420,184,627

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, September 2018

This table shows NHR funding and payments by service category on both a monthly and year-to-date (YTD) basis for Queensland for September 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 491,915,655 491,915,655 1,610,204,547 1,610,204,547
Admitted mental health 34,692,497 34,692,497 113,662,477 113,662,477
Sub-acute 39,767,071 39,767,071 130,108,904 130,108,904
Emergency department 105,971,921 105,971,921 347,161,600 347,161,600
Non-admitted 117,663,467 117,663,467 383,571,232 383,571,232
Total ABF (Pool) 790,010,610 790,010,610 2,584,708,760 2,584,708,760
Block
Small rural hospitals 60,521,938 60,521,938 201,924,232 201,924,232
Teaching, training & research 27,296,969 27,296,969 93,147,489 93,147,489
Non-admitted mental health 35,761,815 35,761,815 118,604,950 118,604,950
Other non-admitted services 1,982,457 1,982,457 6,507,956 6,507,956
Total Block (SMF) 125,563,179 125,563,179 420,184,627 420,184,627
Other
Public health funding 6,797,179 6,797,179 20,391,537 20,391,537
Overdeposit 0 0 0 0
Cross-border 8,200,000 8,200,000 24,600,000 24,600,000
Interest 31,700 0 103,340 0
Total Other (Pool) 15,028,879 14,997,179 45,094,877 44,991,537
Grand Total 930,602,668 930,570,969 3,049,988,263 3,049,884,923

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, September 2018

This table shows NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland during September 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 51,228,305 10,553,372 61,781,677
Central Queensland Hospital and Health Service 26,847,418 7,882,460 34,729,877
Central West Hospital and Health Service 0 3,646,543 3,646,543
Children's Health Queensland Hospital and Health Service 32,545,774 2,242,634 34,788,408
Darling Downs Hospital and Health Service 34,279,948 14,078,515 48,358,463
Gold Coast Hospital and Health Service 82,785,193 6,741,286 89,526,479
Mackay Hospital and Health Service 22,188,434 5,594,830 27,783,264
Mater Misericordiae Health Service Brisbane 38,014,267 988,308 39,002,575
Metro North Hospital and Health Service 161,403,965 14,284,743 175,688,707
Metro South Hospital and Health Service 149,386,061 13,306,631 162,692,692
North West Hospital and Health Service 5,364,375 2,806,004 8,170,379
Queensland Virtual LHN 1,913,596 0 1,913,596
South West Hospital and Health Service 0 5,796,481 5,796,481
Sunshine Coast Hospital and Health Service 71,407,203 5,340,848 76,748,051
Torres and Cape Hospital and Health Service 0 6,085,827 6,085,827
Townsville Hospital and Health Service 47,663,075 11,293,002 58,956,077
West Moreton Hospital and Health Service 24,968,137 10,068,659 35,036,796
Wide Bay Hospital and Health Service 36,213,433 4,754,207 40,967,640
Total 786,209,184 125,464,349 911,673,532

See explanatory notes below table 4b.

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

This table shows YTD NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland as at September 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 166,523,927 35,300,985 201,824,912
Central Queensland Hospital and Health Service 89,599,397 26,348,889 115,948,286
Central West Hospital and Health Service 0 12,178,425 12,178,425
Children's Health Queensland Hospital and Health Service 114,405,186 7,527,878 121,933,064
Darling Downs Hospital and Health Service 113,228,017 47,063,979 160,291,996
Gold Coast Hospital and Health Service 271,498,791 22,586,959 294,085,749
Mackay Hospital and Health Service 70,319,584 18,733,917 89,053,501
Mater Misericordiae Health Service Brisbane 114,530,693 3,373,072 117,903,765
Metro North Hospital and Health Service 538,668,239 47,955,586 586,623,826
Metro South Hospital and Health Service 471,549,016 44,619,475 516,168,491
North West Hospital and Health Service 20,066,168 9,385,709 29,451,877
Queensland Virtual LHN 5,740,788 0 5,740,788
South West Hospital and Health Service 0 19,356,450 19,356,450
Sunshine Coast Hospital and Health Service 229,220,847 17,916,864 247,137,712
Torres and Cape Hospital and Health Service 0 20,319,115 20,319,115
Townsville Hospital and Health Service 163,572,188 37,825,415 201,397,603
West Moreton Hospital and Health Service 88,450,888 33,443,546 121,894,434
Wide Bay Hospital and Health Service 115,881,960 15,911,055 131,793,016
Total 2,573,255,690 419,847,319 2,993,103,010

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, September 2018

This table shows estimated state or territory hospital activity for activity-based funding services expressed as NWAU for September 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 9,943 29,828 119,310
Central Queensland Hospital and Health Service 5,329 15,987 63,946
Children's Health Queensland Hospital and Health Service 6,602 19,807 79,226
Darling Downs Hospital and Health Service 6,746 20,239 80,957
Gold Coast Hospital and Health Service 17,063 51,190 204,758
Mackay Hospital and Health Service 4,342 13,026 52,104
Mater Misericordiae Health Service Brisbane 7,292 21,876 87,506
Metro North Hospital and Health Service 33,317 99,951 399,804
Metro South Hospital and Health Service 27,002 81,005 324,021
North West Hospital and Health Service 1,072 3,215 12,862
Queensland Virtual LHN 896 2,687 10,747
Sunshine Coast Hospital and Health Service 12,550 37,650 150,600
Townsville Hospital and Health Service 10,225 30,675 122,701
West Moreton Hospital and Health Service 6,112 18,337 73,348
Wide Bay Hospital and Health Service 7,009 21,027 84,109
Total 155,500 466,500 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.