Summary
In 2023–24 there were 788,000 potentially preventable hospitalisations (PPH) resulting in an estimated $7.7 billion of expenditure. This equates to 8.5% of total spending on admitted patient services or 2.8% of total health spending. Despite this growth, PPH spending as a share of total admitted patient costs remained relatively stable.
Between 2014–15 to 2023–24, expenditure on PPH increased in real terms (adjusted for inflation) from $5.8 billion to $7.7 billion. During the same period, per person spending on PPH hospitalisations rose by 17%, from $246 to $288.
In 2023–24, chronic conditions had the highest PPH expenditure (45.2%), led by diabetes complications ($962 million), congestive cardiac failure ($861 million), and COPD ($797 million). Acute conditions accounted for 37.5%, with urinary tract infections ($695 million) and cellulitis ($554 million) topping the list. Vaccine-preventable conditions were changeable, with pneumonia and influenza comprising 63.3% of related costs. Over the decade, per person spending rose 6% for chronic and 16% for acute conditions, while diabetes complications surged 62%. Spending on vaccine-preventable conditions increased by 88%.
In 2023–24, the average length of stay (LOS) for overnight PPH was 4.0 days and has remained stable over time. Vaccine-preventable conditions had the highest LOS overall (13.4 days). Gangrene had the longest LOS among acute conditions (12.3 days), down from 14.4 in 2014–15. For chronic conditions, nutritional deficiencies had the highest LOS at 12.3 days and was the highest across all years.
Cost per separation was highest for pneumonia ($37,249), rheumatic heart disease ($34,774), and gangrene ($33,950), while angina had low separation costs but high costs per bed day, highlighting variation in care intensity.
The Northern Territory had the highest per-person PPH cost ($766), nearly four times that of NSW ($197). Residents in Very remote areas experienced 2.8 times the PPH rate and 4.4 times the cost compared to those in Major cities. People in the lowest socioeconomic areas had 1.7 times the PPH rate and 2.4 times the cost compared to those in the highest socioeconomic areas. Most jurisdictions saw rising expenditure over the decade.
Females accounted for 52% of PPH, but males incurred higher total costs ($4.1 billion compared with $3.6 billion), driven by diabetes complications, angina, and gangrene. Females had higher spending for urinary tract infections, asthma, and iron deficiency anaemia. Australians aged 65+ years represented 46% of PPH but 51% of costs, with chronic conditions disproportionately affecting this group. LOS increased with age, averaging 6.2 days for those aged 85+ years, compared to 3.9 days for those aged 50–54. Cost distribution by sex remained stable over time.
The trend from 2016–17 to 2023–24 highlight the disproportionate and growing burden of potentially preventable hospitalisations among First Nations people with a 69% rise in total spending since 2016–17. In 2023-24 age-standardised rates are nearly three times higher than non-Indigenous Australians (68 compared with 25 per 1,000), per person costs almost tripled ($774 compared with $268).