Health expenditure update - April 1998

Table 1: Total health services expenditure, current and constant (average 1989-90) prices, and annual growth rates, 1984-85 to 1996-97
Table 2: Health services expenditure per person, current and constant (average 1989-90) prices, and annual growth rates, 1984-85 to 1996-97
Table 3: Total health services expenditure and GDP (current prices), 1984-85 to 1996-97
Table 4: Government and non-government sectors expenditure (current prices) as a proportion of total health services expenditure, 1984-85 to 1996-97
Table 5: Total health services expenditure, constant (average 1989-90) prices, and annual growth rates, by source of funds, 1984-85 to 1996-97
Table 6: Total health services expenditure (current prices), by area of expenditure and source of funds, 1994-95
Table 7: Total health services expenditure (current prices), by area of expenditure and source of funds, 1995-96

The Health Expenditure Update - April 1998 is also available in PDF format.

Table 1: Total health services expenditure, current and constant (average 1989-90) prices(a), and annual growth rates, 1984-85 to 1996-97
         
   

Amount ($m)

 

Growth rate over previous year (%)

   

Current

Constant

 

Current

Constant

1984-85  

16,546

22,862

 

..

..

1985-86  

18,586

24,180

 

12.3

5.8

1986-87  

21,115

25,341

 

13.6

4.8

1987-88  

23,333

26,287

 

10.5

3.7

1988-89  

26,127

27,719

 

12.0

5.4

1989-90  

28,800

28,800

 

10.2

3.9

1990-91  

31,270

29,422

 

8.6

2.2

1991-92  

33,084

30,203

 

5.8

2.7

1992-93  

34,892

31,393

 

5.5

3.9

1993-94  

36,587

32,589

 

4.9

3.8

1994-95  

38,701

33,957

 

5.8

4.2

1995-96  

41,308

35,716

 

6.7

5.2

1996-97(b)  

43,204

36,768

 

4.6

2.9

Average annual growth rates
1984-85 to 1987-88        

12.1

4.8

1987-88 to 1992-93        

8.4

3.6

1992-93 to 1996-97        

5.5

4.0

  1.  
  2. Health services expenditure for 1984-85 to 1996-97 is deflated to constant (average 1989-90) prices using specific health deflators.

  3. Based on preliminary AIHW and ABS estimates.

Source: AIHW Health Expenditure Database.

Table 1 | Table 2 | Table 3 | Table 4 | Table 5 | Table 6 | Table 7 | Notes

Table 2: Health services expenditure per person, current and constant (average 1989-90) prices(a), and annual growth rates, 1984-85 to 1996-97
       
   

Amount ($)

 

Growth rate over previous year (%)

   

Current

Constant

 

Current

Constant

1984-85  

1,055

1,458

 

..

..

1985-86  

1,169

1,521

 

10.8

4.3

1986-87  

1,309

1,571

 

12.0

3.3

1987-88  

1,423

1,603

 

8.7

2.1

1988-89  

1,566

1,661

 

10.1

3.6

1989-90  

1,700

1,700

 

8.6

2.3

1990-91  

1,820

1,713

 

7.1

0.7

1991-92  

1,902

1,736

 

4.5

1.4

1992-93  

1,984

1,785

 

4.3

2.8

1993-94  

2,060

1,835

 

3.8

2.8

1994-95  

2,155

1,891

 

4.6

3.1

1995-96  

2,271

1,963

 

5.4

3.8

1996-97(b)  

2,345

1,996

 

3.3

1.7

Average annual growth rates
1984-85 to 1987-88        

10.5

3.2

1987-88 to 1992-93        

6.9

2.2

1992-93 to 1996-97        

4.3

2.8

  1.  
  2. Health services expenditure for 1984-85 to 1996-97 is deflated to constant (average 1989-90) prices using specific health deflators.

  3. Based on preliminary AIHW and ABS estimates.

Source: AIHW Health Expenditure Database.

Table 1 | Table 2 | Table 3 | Table 4 | Table 5 | Table 6 | Table 7 | Notes

Table 3: Total health services expenditure and GDP (current prices), 1984-85 to 1996-97
             
   

Total health

GDP

 

Total health expenditure

   

$ million

 

as % of GDP

1984-85  

16,546

217,129

 

7.6

1985-86  

18,586

240,475

 

7.7

1986-87  

21,115

264,007

 

8.0

1987-88  

23,333

299,342

 

7.8

1988-89  

26,127

339,185

 

7.7

1989-90  

28,800

370,043

 

7.8

1990-91  

31,270

379,280

 

8.2

1991-92  

33,084

387,526

 

8.5

1992-93  

34,892

405,372

 

8.6

1993-94  

36,587

429,679

 

8.5

1994-95  

38,701

457,296

 

8.5

1995-96  

41,308

487,679

 

8.5

1996-97(a)  

43,204

510,329

 

8.5

  1.  

  2. Total health services expenditure based on preliminary AIHW and ABS estimates.

Sources: Health services expenditure: AIHW Health Expenditure Database. GDP: ABSAustralian National AccountsNational Income, Expenditure and Product, selected quarters (Cat. No. 5206.0).

Table 1 | Table 2 | Table 3 | Table 4 | Table 5 | Table 6 | Table 7 | Notes

Table 4: Government and non-government sectors expenditure (current prices) as a proportion of total health services expenditure, 1984-85 to 1996-97, %
           
   

Government sector

 

Non-government sector(a)

Total all sectors

   

Commonwealth(a)

State & local

Total

 
1984-85  

46.1

25.8

71.9

 

28.1

100.0

1985-86  

46.0

25.9

71.9

 

28.1

100.0

1986-87  

44.3

26.4

70.8

 

29.2

100.0

1987-88  

44.0

26.0

70.1

 

29.9

100.0

1988-89  

42.6

26.0

68.6

 

31.4

100.0

1989-90  

42.2

26.1

68.3

 

31.7

100.0

1990-91  

42.2

25.5

67.7

 

32.3

100.0

1991-92  

42.8

24.6

67.4

 

32.6

100.0

1992-93  

43.8

23.7

67.5

 

32.5

100.0

1993-94  

45.3

21.9

67.2

 

32.8

100.0

1994-95  

45.0

22.2

67.2

 

32.8

100.0

1995-96  

45.6

22.5

68.1

 

31.9

100.0

1996-97(b)  

45.5

23.2

68.7

 

31.3

100.0

  1.  
  2. Commonwealth Government and non-government sector expenditure adjusted for tax expenditures.

  3. Based on preliminary AIHW and ABS estimates.

Source: AIHW Health Expenditure Database.

Table 1 | Table 2 | Table 3 | Table 4 | Table 5 | Table 6 | Table 7 | Notes

Table 5: Total health services expenditure, constant (average 1989-90) prices(a), and annual growth rates, by source of funds, 1984-85 to 1996-97
 
  Government sector

Non-government Sector(b)

All sectors total
  Commonwealth(b) State & local Total
  Amount ($m) Rate of growth (%) Amount ($m) Rate of growth (%) Amount ($m) Rate of growth (%) Amount ($m) Rate of growth
(%)
Amount ($m) Rate of growth (%)
1984-85

10,491

..

5,797

..

16,288

..

6,574

..

22,862

..
1985-86

11,067

5.5

6,147

6.0

17,214

5.7

6,966

6.0

24,180

5.8
1986-87

11,294

2.1

6,557

6.7

17,851

3.7

7,490

7.5

25,341

4.8
1987-88

11,582

2.6

6,788

3.5

18,371

2.9

7,917

5.7

26,287

3.7
1988-89

11,848

2.3

7,160

5.5

19,008

3.5

8,710

10.0

27,719

5.4
1989-90

12,165

2.7

7,513

4.9

19,678

3.5

9,122

4.7

28,800

3.9
1990-91

12,381

1.8

7,560

0.6

19,941

1.3

9,481

3.9

29,422

2.2
1991-92

12,916

4.3

7,540

-0.3

20,456

2.6

9,747

2.8

30,203

2.7
1992-93

13,741

6.4

7,563

0.3

21,304

4.1

10,089

3.5

31,393

3.9
1993-94

14,768

7.5

7,258

-4.0

22,027

3.4

10,562

4.7

32,589

3.8
1994-95

15,272

3.4

7,704

6.1

22,976

4.3

10,980

4.0

33,957

4.2
1995-96

16,266

6.5

8,218

6.7

24,484

6.6

11,232

2.3

35,716

5.2
1996-97(c)

16,714

2.8

8,700

5.9

25,414

3.8

11,354

1.1

36,768

2.9
Average annual growth rates
1984-85 to 1987-88

3.4

  5.4   4.1   6.4   4.8
1987-88 to 1992-93

3.5

  2.2   3.0   5.0   3.6
1992-93 to 1996-97

5.0

  3.6   4.5   3.0   4.0
  1.  
  2. Health services expenditure for 1984-85 to 1996-97 is deflated to constant (average 1989-90) prices using specific health deflators.

  3. Commonwealth Government and non-government sector expenditure adjusted for tax expenditures.

  4. Based on preliminary AIHW and ABS estimates.

Source: AIHW Health Expenditure Database.

Table 1 | Table 2 | Table 3 | Table 4 | Table 5 | Table 6 | Table 7 | Notes

Table 6: Total health services expenditure (current prices), by area of expenditure and source of funds, 1994-95(a)
           
   

Government sector

 

Non-government sector

Total expenditure

   

Common-wealth(b)

State and local

Total

 

Health insurance funds

Individuals

Other(c)

Total

Area of expenditure

$ million

Total hospitals

5,372

4,782

10,154

 

2,440

441

734

3,616

13,770

  Recognised public hospitals

4,893

4,330

9,223

 

433

-

543

976

10,199

  Private hospitals

240

-

240

 

2,004

429

185

2,617

2,857

  Repatriation hospitals

233

-

233

 

3

-

-

3

236

  Public psychiatric hospitals

6

452

459

 

-

13

7

20

478

Nursing homes

1,860

243

2,102

 

-

640

-

640

2,743

Ambulance

43

214

257

 

87

74

33

194

451

Other institutional (nec)

128

-

128

 

-

-

-

-

128

Total institutional

7,403

5,239

12,641

 

2,527

1,155

768

4,450

17,091

Medical services

6,086

-

6,086

 

216

712

369

1,297

7,383

Other professional services

171

-

171

 

205

752

185

1,142

1,313

Total pharmaceuticals

2,086

1

2,087

 

42

2,091

26

2,159

4,246

  Benefit paid pharmaceuticals

2,086

-

2,086

 

-

461

-

461

2,547

  All other pharmaceuticals

-

1

1

 

42

1,630

26

1,698

1,699

Aids and appliances

147

-

147

 

169

438

25

632

778

Other non-institutional services

1,083

1,697(d)

2,780

 

1,043

1,113

11

2,167

4,947

  Community and public health

493

n.a

n.a

 

1

-

3

4

n.a

  Dental services

105

n.a

n.a

 

546

1,113

8

1,668

n.a

  Administration

486

n.a

n.a

 

495

-

-

495

n.a

Research(e)

340

176

516

 

-

111

-

111

627

Total non-institutional

9,913

1,874

11,787

 

1,674

5,217

617

7,508

19,295

Total recurrent expenditure

17,316

7,113

24,428

 

4,201

6,372

1,385

11,958

36,386

Capital expenditure

-17

990

973

 

n.a.

n.a.

813

813

1786

Capital consumption

23

506

529

 

(f)

(f)

(f)

(f)

529

Total health expenditure

17,322

8,608

25,930

 

4,201

6,372

2,198

12,771

38,701

  1.  
  2. This table shows the amounts provided by the Commonwealth, State and Territory Governments and local government authorities and by the non-government sector to fund expenditure on health services. It does not show gross outlays on health services by each of the levels of government or the non-government sector.

  3. Commonwealth expenditure includes funding of health services for veterans by the Department of Veterans Affairs as well as general health funding by the Commonwealth Department of Health and Family Services.

  4. Other includes expenditure on health services by Workers Compensation and Compulsory Motor Vehicle Third Party Insurance providers.

  5. State and local government expenditure on other non-institutional services cannot be reliably divided into community and public health, dental services and administration categories.

  6. Health services research expenditure is allocated to the level of government or the sector that actually undertakes the research activity, not according to the source of funds.

  7. Private capital consumption (depreciation) is included as part of recurrent expenditure.

Source: AIHW Health Expenditure Database.

Table 1 | Table 2 | Table 3 | Table 4 | Table 5 | Table 6 | Table 7 | Notes

Table 7: Total health services expenditure (current prices), by area of expenditure and source of funds, 1995-96(a)
           
   

Government sector

 

Non-government sector

Total expenditure

   

Common-wealth (b)

State and local

Total

 

Health insurance funds

Individuals

Other(c)

Total

Area of expenditure

$ million

Total hospitals

5,498

5,425

10,923

 

2,611

306

1,012

3,928

14,852

  Recognised public hospitals

5,181

5,043

10,224

 

380

-

645

1,025

11,249

  Private hospitals

295

-

295

 

2,231

293

364

2,888

3,183

  Repatriation hospitals

16

-

16

 

-

-

-

-

16

  Public psychiatric hospitals

7

382

389

 

-

13

3

15

404

Nursing homes

2,055

223

2,277

 

-

677

-

677

2,954

Ambulance

41

232

274

 

91

71

33

194

468

Other institutional (nec)

140

-

140

 

-

-

-

-

140

Total institutional

7,735

5,880

13,615

 

2,702

1,053

1,044

4,799

18,414

Medical services

6,497

-

6,497

 

223

757

395

1,375

7,872

Other professional services

195

-

195

 

215

758

182

1,155

1,350

Total pharmaceuticals

2,504

11

2,515

 

44

2,063

35

2,142

4,657

  Benefit paid pharmaceuticals

2,504

-

2,504

 

-

493

 

493

2,997

  All other pharmaceuticals

-

11

11

 

44

1,569

35

1,649

1,660

Aids and appliances

148

-

148

 

172

438

32

642

789

Other non-institutional services

1,156

1,775(d)

2,932

 

1,069

1,149

12

2,230

5,162

  Community and public health

521

n.a

n.a

 

2

-

3

4

n.a

  Dental services

152

n.a

n.a

 

564

1,149

10

1,722

n.a

  Administration

484

n.a

n.a

 

504

-

-

504

n.a

Research(e)

395

187

583

 

-

125

-

125

707

Total non-institutional

10,895

1,973

12,868

 

1,724

5,289

656

7,668

20,537

Total recurrent expenditure

18,630

7,853

26,483

 

4,426

6,342

1,701

12,468

38,951

Capital expenditure

46

903

949

 

n.a.

n.a.

836

836

1786

Capital consumption

18

553

571

 

(f)

(f)

(f)

(f)

571

Total health expenditure

18,694

9,309

28,003

 

4,426

6,342

2,537

13,304

41,308

  1.  
  2. This table shows the amounts provided by the Commonwealth, State and Territory Governments and local government authorities and by the non-government sector to fund expenditure on health services. It does not show gross outlays on health services by each of the levels of government or the non-government sector.

  3. Commonwealth expenditure includes funding of health services for veterans by the Department of Veterans Affairs as well as general health funding by the Commonwealth Department of Health and Family Services.

  4. Other includes expenditure on health services by Workers Compensation and Compulsory Motor Vehicle Third Party Insurance providers.

  5. State and local government expenditure on other non-institutional services cannot be reliably divided into community and public health, dental services and administration categories.

  6. Health services research expenditure is allocated to the level of government or the sector that actually undertakes the research activity, not according to the source of funds.

  7. Private capital consumption (depreciation) is included as part of recurrent expenditure.

Source: AIHW Health Expenditure Database.

Table 1 | Table 2 | Table 3 | Table 4 | Table 5 | Table 6 | Table 7 | Notes

Technical Notes

Revisions of definitions and estimates

Revisions have been made to estimates of recurrent health expenditure since the publication of Health Expenditure Bulletin No. 13. While most of these revisions have not caused the overall estimates for total health expenditure to change markedly, they do alter the composition of expenditure somewhat.

Recognised public hospitals

Total expenditure for recognised public hospitals has been revised upwards in 1994-95 by $208 million.

Private hospitals

The method for allocating revenue in 1995-96 between the individual contribution and other revenue was revised.

Dental services

1992-93 was revised by $106 million and minor revisions were made for some other years.

Other professional services

The other professional services data has been revised so as to move the discontinuity in the series back to 1989-90. An error in the 1994-95 estimate of the Individuals contribution to this area of expenditure was corrected which reduced the estimate by $149 million.

Other non-institutional

Expenditure in this area (which is mostly family planning expenditure) has been included in the community and public health category.

Other non-institutional services

This is a new category which combines community and public health, administration and dental services for the State and local government sectors where the data are not accurate enough to disaggregate. Steps are being taken to collect this missing data for publication next year.

Abbreviations and symbols used in tables

n.a. not available; - nil or rounded down to zero; .. not applicable

Future publications

More detailed health expenditure information will be published in Health Expenditure Bulletin No. 14 which is scheduled for publication in June 1998.

Table 1 | Table 2 | Table 3 | Table 4 | Table 5 | Table 6 | Table 7 | Notes

24 April 1998


Further information: Tony Hynes, ph. 02 6244 1160 or 02 6231 4261 (ah).
Media contact: Nigel Harding, ph. 02 6244 1025.