Queensland public hospital services purchasing and funding models

Service agreements between the Department 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:

• The Queensland Activity Based Funding (ABF) model is based largely on the national ABF model (otherwise known as the National Efficient Price) but includes some modifications to reflect Queensland system priorities.
• Small rural hospitals and other standalone hospitals providing specialist services (such as mental health services) are funded through the National Efficient Cost (NEC) block funding model.
• Other services that are also block funded under the NEC includes: teaching, training and research; residential mental health services; non-admitted home ventilation services (as defined by Tier 2 v10 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 primary health services, and third- party funded health services, such as residential aged care.

The HHS Funding and Purchasing Guidelines provide 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.