Spending on health services in Australia as a proportion of
Gross Domestic Product (GDP) has remained the same for the third
consecutive year, according to figures released today by the
Australian Institute of Health and Welfare.
Health Expenditure Bulletin No. 13 shows that Australia
as a nation spent $41.7 billion, or 8.5% of Gross Domestic Product,
on health services during 1995-96.
Average spending on health services per Australian was $2,294 in
1995-96, an increase of $126 over the 1994-95 level, or 4.0% in
real terms.
The Institute's health economist, Mr John Goss, said that there
was a 5.3% increase in real terms in total health services
expenditure between 1994-95 and 1995-96. This compared with real
GDP growth of 3.9%.
'Preliminary indications are that growth in 1996-97 will be
lower than in previous years largely due to real expenditure growth
by the Commonwealth being only about 0.5% compared with 6.4% in
1995-96.'
Proportions of funding for health services expenditure from the
government and non-government sectors have remained steady since
1988-89, with government sectors accounting for about two-thirds of
total spending and non-government sectors accounting for
one-third.
In the two years 1994-95 and 1995-96, total expenditure funded
by State, Territory and local governments grew much faster than
previously: 7.3% in 1994-95 and 6.3% in 1995-96 after a decline in
1993-94 of 3.9%.
Other findings of the study include:
- Commonwealth Government spending on health services grew at an
annual average of 5.0% between 1989-90 and 1995-96. State,
Territory, and local government expenditure grew by an average of
1.6% over the same period.
- Between 1993-94 and 1995-96 health price increases averaged
1.6% per year while price increases in the rest of the economy
averaged 2.1% per year.
- Of the major areas of expenditure, pharmaceuticals and private
hospitals had the fastest growth between 1989-90 and 1994-95 at
8.0% and 8.3% per year respectively.
30 July 1997
Further information:John Goss, ph. 02 6244 1151
or 02 6258 9328 (ah).
For media copies of the bulletin (16pp): Mark
McCarthy, ph. 02 6244 1031.
For general media enquiries:Nigel Harding, ph. 02
6244 1025.
Availability: Check the AIHW Publications Catalogue
for details.