Spending on potentially preventable hospitalisations by location
Potentially preventable hospitalisations (PPH) are one way of quantifying the management of conditions in the community. People living in different geographic regions have varying levels of access to primary health care and therefore may be expected to have varying rates of PPH. However, access to care is not the sole reason PPH rates may vary and may reflect differences in disease burden within these communities. Additionally, hospital admission practices may vary depending on the hospital or state.
This report is based on the residential location of individuals, rather than the physical location of the hospital where care was received. Individuals may access hospital services outside their area of residence. The following data visualisations present information on the rates and spending associated with PPH by state and territory, remoteness area, and socio-economic indexes for areas (SEIFA) (Figure 6). The SEIFA is a critical tool for understanding the intersection of socio-economic disadvantage and health outcomes.
Key findings:
- There is substantial variation in both crude PPH hospitalisation rates and associated per-person health-care expenditure by states and territories.
In 2023–24:
- the Northern Territory exhibited the highest per-person PPH cost ($766).
- NSW recorded the lowest per-person PPH cost ($197).
- the rates of PPH and per person expenditure were higher for those living in Very remote areas compared to those in Major cities (2.8 and 4.4 times greater, respectively).
- individuals residing in the lowest socioeconomic areas had 1.7 times the rates of PPH and 2.4 times the cost per person compared to people living in the highest socioeconomic areas.
Between 2014–15 and 2023–24:
- total expenditure and per person expenditure increased in most jurisdictions.
Figure 6: PPH rate, cost per person, and total cost by PPH category and conditions, state and territory, SEIFA, and Remoteness, 2014–15 to 2023–24
The data visualisation shows yearly cost, cost per person and rate of potentially preventable hospitalisations by category and condition from 2014–15 to 2023–24. The first view is by remoteness and socioeconomic areas. The second view is by states and territories. The Northern Territory consistently recorded the highest per-person cost, while New South Wales recorded the lowest. In 2023–24, rates and per-person expenditure were highest for people in very remote areas compared with major cities. People in the lowest socioeconomic areas had almost double the rate and cost per person compared with those in the highest socioeconomic areas.