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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 2010–11, recurrent expenditure by public hospitals was $36,985 million (excluding depreciation). After adjusting for inflation, this represented an increase of 8.2% compared with 2009–10.

Over 62% of this expenditure was for salary payments ($22,959 million) (Figure 6).

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.

Between 2006–07 and 2010–11, recurrent expenditure by public hospitals increased by an average of 5.9% per year (after adjusting for inflation) (Figure 7).

Figure 6: Recurrent expenditure, public hospitals, 2010–11

This pie chart shows the recurrent expenditure in public hospitals as in 2010–11. The expenditure are from Medical officers salary and wages (15%); Nurses salary and wages (28%); Other salary and wages (20%); Payments to visiting medical officers (3%); Drug supplies (5%); Medical and surgical supplies (9%); Administrative expenses (5%) and Other non salary (15%).  

Figure 7: Recurrent expenditure, adjusted for inflation, public hospitals, 2006–07 to 2010–11

This bar chart shows the recurrent expenditure (in $ million) after adjusted for inflation in public hospitals between 2006–07 and 2010–11.  

Private hospitals

In 2009–10, recurrent expenditure by private hospitals was $8,946 million (including depreciation).

About 51% of this expenditure was for salary payments ($4,552 million).

Between 2005–06 and 2009–10, recurrent expenditure by private hospitals increased by an average of 8.3% per year (after adjusting for inflation) (ABS 2011).