Total spending on potentially preventable hospitalisations

In 2023–24, Australia spent $270.5 billion on health goods and services, representing 10.1% of gross domestic product (GDP). Of this amount, $91.1 billion was spent on public and private hospital admitted patient services. There were 788,000 potentially preventable hospital (PPH) separations in 2023–24, a rate of 26 per 1,000 population. This equates to $7.7 billion of expenditure on admitted patient services (8.5%), and 2.8% of the total 2023-24 health spending (Figure 1).

Between 2014–15 to 2023–24, PPH rose by 23%, while rates remained steady at around 25 per 1,000. The largest cost increase ($1,072 million) occurred between 2021–22 and 2022–23 (Figure 2).

Figure 1: Potentially preventable hospitalisation spending as a percent of hospital and admitted patient spending, 2014–15 to 2023–24

The line graph shows annual spending on potentially preventable hospitalisations in Australia from 2014–15 to 2023–24, as a percentage of total hospital spending and admitted patient spending. Spending remained steady over the period, with the percentage of admitted patient spending consistently double that of total hospital spending.

The line graph shows annual spending on potentially preventable hospitalisations in Australia from 2014–15 to 2023–24, as a percentage of total hospital spending and admitted patient spending. Spending remained steady over the period, with the percentage of admitted patient spending consistently double that of total hospital spending.

Figure 2: Summary measures of potentially preventable hospitalisations spending in Australia, 2014–15 to 2023–24

The column chart shows yearly total cost, per person cost, number and rate of potentially preventable hospitalisations in Australia from 2014–15 to 2023–24. Hospitalisations increased over the period, while rates remained steady. The largest cost increase occurred between 2021–22 and 2022–23.

The column chart shows yearly total cost, per person cost, number and rate of potentially preventable hospitalisations in Australia from 2014–15 to 2023–24. Hospitalisations increased over the period, while rates remained steady. The largest cost increase occurred between 2021–22 and 2022–23.
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