The average cost per separation is a measure of efficiency of admitted patient services. Patients with more complex conditions are likely to cost more than patients with less complex conditions. In order to compare the average cost per admitted patient across hospitals, it is necessary to adjust for the average complexity of patients treated in each hospital. This is called ‘casemix adjustment’.
The average cost per casemix-adjusted separation in public hospitals increased from $3,698 in 2005–06 to $4,706 in 2009–10 (not adjusted for inflation).
This represents a total increase of 27.0% in this period (Figure 35), an average increase of 6.2% annually.
In 2009–10 the average cost comprised:
- $2,357 for non-medical labour expenditure
- $1,041 for medical labour expenditure
- $1,308 for other recurrent expenditure.
Other recurrent expenditure costs include domestic services; repairs and maintenance; administration; and medical, drug and food supplies. It does not include capital and other fixed costs.
Figure 34: Cost per casemix-adjusted separation, public hospitals, 2005–06 to 2009–10
