The AIHW has completed the first systematic analysis of the
total health system costs of disease and injury in Australia.
Health System Costs of Diseases and Injury in Australia
1993-94 provides the best possible estimates of health system
resources directed at the prevention and treatment of diseases and
injuries, given the limitations of available health system cost and
utilisation data.
According to the report, total recurrent health expenditure in
Australia in 1993-94 was $34.1 billion. The disease cost estimates
include 92% of this expenditure, or just over $31 billion in total.
The main components of health expenditure not yet included in the
disease cost estimates are capital expenditure, community health
services and public health programs (apart from three cancer public
health programs).
The disease groups that account for the most health expenditure
in Australia are:
- circulatory diseases $3.7 billion (12% of total health system
costs)
- digestive system diseases $3.7 billion (12%)
- musculoskeletal problems $3.0 billion (9.5%)
- injury and poisoning $2.6 billion (8.3%)
- mental disorders $2.6 billion (8.3%)
- respiratory diseases $2.5 billion (8.0%).
AIHW's Principal Research Fellow, Dr Colin Mathers, said that
digestive system diseases were the second most expensive group in
part because of the large expenditure on dental services ($1.8
billion). "However, they account for relatively few deaths compared
with disease groups such as circulatory system, injury and cancers
(in eighth position at $1.9 billion), " he said.
Other findings of the report include:
- Total health system costs for females are 34% higher than those
for males: $18.0 billion compared with $13.4 billion. The
male-female difference in per person costs is greatest in the peak
reproductive years, where average annual costs for women aged 25-34
years were $1,695, almost double the average cost, of $865, for men
of the same age.
- Total health system costs for men increase with age peaking in
the age group 65-74 years, whereas those for women peak in the age
group 25-34 years, reflecting child bearing and health costs
related to the genitourinary system.
- In 1993-94, average health system costs per capita ranged from
a minimum of around $800 per year for boys aged 5-14 years to
$7,900 per year for women aged 75 years and over.
A companion volume, Disease Costing Methodology used in the
Disease Costs and Impact Study 1993-94, details the
methodology and assumptions used to estimate the health system
costs of diseases and injury in Australia.
17 September 1998
Further information: Dr Colin Mathers,
Principal Research Fellow, AIHW, ph. 02 6244 1138 or 04 0792 8523
(mobile).
For media copies of the report: Lena Searle, ph.
02 6244 1032.
Availability: Check the AIHW Publications
Catalogue for details.