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. 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 $4,215 in 2007-08 to $5,204 in 2011-12 (not adjusted for inflation).
There was a total increase of 20.3% in this period (Figure 30), an average increase of 4.7% annually.
In 2011-12 the average cost comprised:
- $2,564 for non-medical labour expenditure
- $1,163 for medical labour expenditure
- $1,477 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.