Health expenditure in Australia in 2003-04 was $78.4 billion or
$3,919 per person, according to a report released today by the
Australian Institute of Health and Welfare.
This represents a $6.1 billion increase from 2002-03, or $267
more per person than the previous year.
Health expenditure as a proportion of Gross Domestic Product
(GDP) was estimated at 9.7% for 2003-04, up from 9.5% in 2002-03
and up from 8.3% a decade ago.
The AIHW report, Health Expenditure Australia 2003-04,
shows that expenditure on hospitals, medical services and
pharmaceuticals continue to drive health expenditure in
Australia.
These three areas accounted for $3.8 billion of the increase
between 2002-03 and 2003-04. Increased expenditure on other
professional services, high-level residential care and dental
services accounted for $0.6, $0.4 and $0.3 billion
respectively.
The majority of spending in health was funded by governments
(67.9%), while the non-government sector funded 32.1%.
In 2003-04, $8.1 billion in funding was directed through private
health insurance but $2.5 billion of that figure was funded by the
Australian Government's health insurance rebates (up from $2.3
billion the previous year).
Out-of-pocket spending on health by Australians grew, in real
terms, 6.2% in 2003-04 compared to 5.0% the previous year, which
equates to $15,912 million in current prices,' said Lindy Ingham of
the Institute's Expenditure Unit.
Real growth in expenditure by individuals between 1993-94 and
2003-04 was 5.4% per year, 0.8 percentage points above the real
growth in health expenditure, of 4.6%, per year over the
period.
Comparing Australia internationally, Ms Ingham said,
'Organisation for Economic Co-operation and Development (OECD)
figures show that our health expenditure-to-GDP ratio of 9.7% is
above the OECD average of 8.8%.'
30 September 2005
Further information: Mr Ken Tallis AIHW, tel.
02 6244 1014 or, Ms Lindy Ingham, AIHW, tel. 02 6244 1160 or Mobile
0407 915 851
For media copies of the report: Publications
Officer, AIHW, tel 61 2 6244 1032.
Availability: Check the AIHW Publications
Catalogue for availability of Health Expenditure Australia
2003-04