Figures released today by the Australian Institute of Health and
Welfare show that between 1996-97 and 1997-98 spending on health
services in Australia rose by $3.0 billion to $47.3 billion, a real
growth rate of 5.1%, and higher than the average real growth rate
of 4.1% per year since 1989-90.
Health Expenditure Bulletin No. 15: Australias Health
Services Expenditure to 1997-98 shows that the higher growth
was partly due to high health capital expenditure growth of 12.6%
in 1997-98. This was driven by a 23% increase in State government
funding of capital expenditure (Table 15). High real expenditure
growth in public non-psychiatric hospitals expenditure of 6.6% in
1997-98 (Table 8) also contributed to the higher growth rate.
Between 1991-92 and 1997-98, real growth in spending on health
services (4.6% per year) was higher than the average real growth
rate for Gross Domestic Product of 4.1% per year. This led to the
health services expenditure to GDP ratio rising from 8.2% in
1991-92 to 8.4% in 1997-98.
The non-government sectors contribution fell from 32.8% of
funding in 1996-97 to 30.9% in 1997-98 (Table 5). Principal
economist with the AIHW, Mr John Goss, said Another interesting
finding is the decrease in the proportion of funding by the
non-government sector between 1996-97 and 1997-98. This is partly
due to the impact of the Private Health Insurance Incentives
Scheme. It effectively transferred responsibility for $419 million
of funding from the non-government sector to the Commonwealth
during 1997-98. The scheme provided an income-tested financial
incentive to take out and maintain private health insurance.
Mr Goss also said that low capital expenditure growth in the
non-government sector was a factor in the fall in the
non-government share (Table 15).
Health Expenditure Bulletin No. 15 shows that the
Commonwealth Governments funding of health expenditure increased
from 44.8% to 45.5%, while the State and local governments
proportion increased from 22.5% to 23.6%.
Government spending on public non-psychiatric hospitals, after
adjustment for inflation, increased by 4.1% per year between
1992-93 and 1997-98, during the last Medicare Agreement, with
Commonwealth expenditure increasing by 2.2% per year on average,
and State and Territory expenditure by 6.2% per year on
average.
Topics covered in Health Expenditure Bulletin No. 15:
Australias Health Services Expenditure to 1997-98 include
expenditure per person, types of expenditure, health prices, and
funding of health services expenditure.
2 July 1999
Further information: Mr John Goss, ph. 02 6244
1151 (bh) or 02 6258 9328 (ah), or Mr Tony Hynes, ph. 02 6244 1160
(bh).
For media copies of the report: Lena Searle, ph.
02 6244 1032.
Availability: Check the AIHW Publications
Catalogue for details.