Hospital expenditure includes recurrent expenditure and capital expenditure. Recurrent expenditure is money that is spent on goods and services that are consumed during the year, for example, salaries. Capital expenditure includes money spent on buildings and large pieces of equipment.
Public hospitals
In 2009–10, recurrent expenditure by public hospitals was $33,706 million (excluding depreciation). After adjusting for inflation, this represented an increase of 3.7% compared with 2008–09.
Over 62% of this expenditure was for salary payments ($21,099 million) (Figure 7).
About 70% of recurrent expenditure was on admitted patient services—rather than emergency department, outpatient and other services for non-admitted patients, and other hospital activities.
Figure 7: Recurrent expenditure, public hospitals, 2009–10
Between 2005-06 and 2009-10, recurrent expenditure by public hospitals increased by an average of 5.2% per year (after adjusting for inflation) (Figure 8).
Figure 8: Recurrent expenditure, adjusted for inflation, public hospitals, 2005–06 to 2009–10
Private hospitals
In 2008–09, recurrent expenditure by private hospitals was $8,137 million (including depreciation) (ABS 2010).
About 51% of this expenditure was for salary payments ($4,124 million).
Between 2005–06 and 2009–10, recurrent expenditure by private hospitals increased by an average of 2.4% per year (after adjusting for inflation).