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Queensland public hospital services purchasing and funding models

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 models determine 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 models:

  • 37 public hospitals are funded through the Queensland Activity Based Funding (ABF) model, which is based largely on the national ABF model (otherwise known as the National Efficient Price), but includes a number of modifications to reflect Queensland priorities.
  • 85 facilities are funded through the National Efficient Cost (NEC) block funding model; consisting of 80 small rural hospitals, 4 specialist mental health hospitals, and 1 standalone major city hospital providing specialist child health services.
  • Also under the NEC block funding model, the following services are funded: teaching, training and research; Non-admitted mental health services (17 including community bed-based residential mental health service facilities); Non-admitted home ventilation services (as defined by Tier 2 V5.0 Non-admitted services class 10.19) and A17 list services not otherwise provided.
  • Other funding models have been developed for those public health services which are outside the scope of the above NHRA ABF and block funding models, such as population-based community services, specific funding arrangements for offender health services, third-party funded health services. These include residential aged care and disability residential care service facilities.

The Health Funding Principles and Guidelines provides more information on the funding model.

The purchasing model determines the volume of services that the Department agrees to purchase from each HHS through the service agreement. The level of purchasing is informed by identified priorities for investment and known/expected service developments in negotiation with the HHSs.

Details about the funding agreements for each HHS and what they cover are available in individual HHS service agreements.

Last updated: 26 July 2019