Health spending in Australia grew by 6% between 2000-01 and
2001-02 to $66.6 billion, according to the latest figures released
today by the Australian Institute of Health and Welfare (AIHW).
The 6% rise overall was the highest since 1991-92, and boosted
health expenditure as a proportion of Gross Domestic Product (GDP)
to 9.3%, the highest ever.
Governments continued to foot most of the bills in health
(69.1%), with the Australian Government contributing an estimated
$30.7 billion, and state, territory and local governments $14.8
billion.
The AIHW report, Health expenditure Australia 2001-02,
also shows that spending on health by Australians from their own
pockets grew by an average 7.7% per year in real terms during the
five-year period 1997-98 to 2001-02.
Out-of-pocket spending on health in 2001-02 was $12.3 billion or
$630.00 per person. This accounted for 59% of non-government
spending on health.
Private health insurance funds, the other major contributor to
non-government health spending, provided $5.1 billion in 2001-02,
or 24% of non-government spending.
The Australian Government's share of public hospital funding was
$ 8.0 billion (47.9%) in 2001-02 compared with $7.5 billion (48.8%)
the previous year. The state, territory and local government share
was $7.7 billion (46.2%), compared with $7.0 billion (45.6%) in
2000-01.
The estimated $66.6 billion spent on health in Australia in
2001-02 was $5.7 billion more than the previous year. This equates
to $3,397 per person in 2001-02, an annual rise of $250 per person
or 4.6% in real terms. The 4.6% annual increase per person is the
equal highest since 1991-92.
Report co-author Lindy Ingham said that as had been the case for
all of the 1990s, hospital and medical services, and
pharmaceuticals were the main drivers of health expenditure growth,
accounting for over two-thirds of all health spending
increases.
'Expenditure on pharmaceuticals in particular grew
rapidly-rising by 9.4% per year in real terms in the decade to
2001-02, compared with a 4.5% real growth in overall spending on
health over the same period.'
The health expenditure to GDP ratio of 9.3% compares with 9.1%
in 2000-01, and 8.1% in 1991-92. Ms Ingham said that while the 9.3%
ratio was the highest figure recorded for Australia, it was
comparable to other Organisation for Economic Co-operation and
Development (OECD) countries.
'Our figures are similar to Canada, France and the Netherlands,
while being more than the UK and New Zealand, but still a long way
short of the USA.'
23 September 2003
Further information: Ms Lindy Ingham, AIHW, 02
6244 1143, mobile 0407 915 851; Mr Tony Hynes, AIHW, 02 6244
1160
Media copies of the report: Publications Officer,
AIHW, tel. 02 6244 1032
Availability: Check the AIHW
Publications Catalogue for details.