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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:

  • 40 public hospitals, 15 HHSs and Mater Health Services 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 some modifications to reflect Queensland priorities.
  • 83 hospitals and facilities are funded through the National Efficient Cost (NEC) block funding model: consisting of 77 small rural hospitals, 4 standalone hospitals providing specialist mental health services, 1 standalone major city hospital providing specialist services and 1 other standalone hospitals.
  • Also under the NEC block funding model, the following services are funded: Teaching, training and research; Non-admitted mental health services; Non-admitted home ventilation services (as defined by Tier 2 V7.0 Non-Admitted Services class 10.19), A17 List services not otherwise priced, Highly Specialised Therapies, and other public hospital programs.
  • Other funding models have been developed for those public health services which are outside the scope of the above ABF and Block funding models, such as population-based community services, specific funding arrangements for Prisoner Health Services and third- party funded health services, including residential aged care.

The HHS Funding and Purchasing Guidelines provides more information on the funding model.

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

Last updated: 25 November 2022