Total expenditure on health in Australia reached $94 billion or
$4,507 per person in 2006-07, according to a report released today
by the Australian Institute of Health and Welfare.
'This was a $7 billion, or $286 per person, increase over the
previous year,' said Mr John Goss of the Institute's Expenditure
and Economics Unit.
After adjusting for inflation, the increase was 4.8%, which is
similar to the average annual growth rate of 4.9% over the previous
decade.
The growth in expenditure on health was similar to the growth in
spending on all goods and services. As a result, the health
expenditure to Gross Domestic Product (GDP) ratio remained at 9%,
the same as in 2005-06 and 2004-05.
The report, Health expenditure Australia 2006-07,
showed that, compared with other Organisation for Economic
Co-operation and Development (OECD) countries, Australia's health
spending as a proportion of GDP, was similar to Italy, New Zealand
and Norway. It was higher than the United Kingdom, but considerably
lower than the United States, where health spending is
substantially higher than for all other nations at 15% of GDP.
Almost 70% of health expenditure in Australia was funded by
governments, with the Australian Government contributing $40
billion (42%), and state, territory and local governments
contributing $25 billion (26%). The remaining $29 billion (31%) was
funded by individuals, private health insurers, and other
non-government sources.
'Although the Australian Government has consistently been the
largest single source of funds over the period 1996-97 to 2006-07,
its funding share has declined in recent years. The peak was 44% in
2000-01,' Mr Goss said.
'For public and private hospitals combined, the Australian
Government's share of funding peaked at 45% in 2000-01 and has
fallen every year since then to 40% in 2006-07. Over the same
period, State and territory government funding increased from 35%
to 42%,' he said.
For public hospital funding alone, the Australian Government's
share through the Australian Health Care Agreements (AHCAs) peaked
at 40% in 2000-01 and has fallen to a 33% share in 2006-07. The
State and territory government share of public hospital funding on
the other hand rose from 45% in 2000-01 to 52% in 2006-07.
The three major areas of health expenditure - hospitals, medical
services and medications - accounted for 72% of all recurrent
spending on health in 2006-07, which was similar to the pattern of
expenditure seen over the last decade.
Friday 26 September 2008
Further information: Mr John Goss, AIHW, 02
6244 1151, mob. 0402 346 379 or Ms Gail Brien 02 6244 1050.
For media copies of the report: Publications
Officer, AIHW, tel. 61 2 6244 1032.
Availability: Check the AIHW Publications
Catalogue for the availability of Health expenditure
Australia 2006-07.