Hospitals

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During 2022–23, an estimate of $107.1 billion was spent on Australia's public and private hospitals, with $49.7 billion (46.4%) funded by state and territory governments and $39.4 billion (36.8%) by the Australian Government. The remaining $18.0 billion (16.8%) came from non-government sources (Figure 24).

Spending on hospitals in 2022–23 was 4.7% higher than in 2021–22 and above the average annual growth for the decade (4.2%). The increase in 2022–23 resulted from increased funding by states and territories (9.1%) and non-government sources (4.9%) in real terms. This increase in hospital spending was accompanied by a 4.6% increase in the number of separations in 2022–23 compared to 2021–22 (AIHW 2024).

Figure 24: Spending on hospitals, by source of funds, constant prices (a), 2012–13 to 2022–23

The line graph shows that spending on hospitals increased between 2012–13 and 2022–23 for Australian government, state and territory and non-government. State and territory governments had the highest spending on hospitals in every year over the decade. State and territory government spending increased from $30.3 billion in 2012–13 to $49.7 billion in 2022–23. Spending by the Australian Government on hospitals increased from $25.6 billion in 2012–13 to $39.4 in 2022–23. Non-government spending increased most of the years over the decade, from $14.9 billion in 2012–13 to $18.0 billion in 2022–23.

The line graph shows that spending on hospitals increased between 2012–13 and 2022–23 for Australian government, state and territory and non-government. State and territory governments had the highest spending on hospitals in every year over the decade. State and territory government spending increased from $30.3 billion in 2012–13 to $49.7 billion in 2022–23. Spending by the Australian Government on hospitals increased from $25.6 billion in 2012–13 to $39.4 in 2022–23. Non-government spending increased most of the years over the decade, from $14.9 billion in 2012–13 to $18.0 billion in 2022–23.

⁽ᵃ⁾ Constant price health spending is in 2022–23 prices.

Source: AIHW Health Expenditure Database (Table 29).

Public hospitals

Spending on public hospitals was estimated to be $85.6 billion in 2022–23 (Figure 25). Spending was up from $81.2 billion in 2021–22, a real increase of 5.4%, which was above the average annual real growth over the decade (4.4%).

Figure 25: Public hospital spending, by source of funds, constant prices (a), 2012–13 to 2022–23

The line graph shows that spending on public hospitals by the Australian Government, state and territory governments and non-government sector over the decade from 2012–13 to 2022–23. State and territory governments spent the most on public hospitals of all sources over the decade, increased every year to $49.4 billion in 2022–23. Similarly, Australian Government spending on public hospitals increasing every other year to $31.8 billion in 2022–23. Non-government spending on public hospitals fluctuated around $4.0 billion to $5.2 billion over the decade between 2012–13 and 2022–23.

The line graph shows that spending on public hospitals by the Australian Government, state and territory governments and non-government sector over the decade from 2012–13 to 2022–23. State and territory governments spent the most on public hospitals of all sources over the decade, increased every year to $49.4 billion in 2022–23. Similarly, Australian Government spending on public hospitals increasing every other year to $31.8 billion in 2022–23. Non-government spending on public hospitals fluctuated around $4.0 billion to $5.2 billion over the decade between 2012–13 and 2022–23.

⁽ᵃ⁾ Constant price health spending is in 2022–23 prices.

Note: Public hospital services exclude certain services provided in hospitals, and can include services provided off site, such as hospital in the homes and dialysis.

Source: AIHW Health Expenditure Database (Table 30).

In 2022–23, state and territory governments contributed $49.4 billion (57.7%). This was followed by the Australian Government with $31.8 billion (37.1%) and non-government entities with $4.4 billion (5.2%). The Australian Government spending showed no real growth, compared with a 9.2% increase by state and territory governments and a 6.6% rise by non-government sources (Table 30). During the same time, the number of separations in public hospitals increased by 4.3% (AIHW 2024). See more details on the Australian Government spending on public hospital services in Table A11.

Over the 10-year period to 2022–23, overall spending increased in real terms by 4.4% on average per year, with the highest increase from state and territory governments (5.0%) and the Australian Government (4.3%), while the non-government sector decreased by 0.9% (Table 30).

See Australian National Health Account: Overview of data sources and methodology for more information on data sources and methodologies, as well as a comparison and alignment between this report and other health spending figures published elsewhere, especially related to public hospitals spending.

Private hospitals

Most (63.2%, $13.6 billion) of the estimated $21.5 billion spent on private hospitals was funded by the non-government sector:

  • private health insurance providers, $9.7 billion
  • individuals, $2.4 billion
  • other non-government, $1.5 billion (Table A6).

Another estimated $7.6 billion (35.6%) was spent by the Australian Government and $0.3 billion (1.2%) by state and territory governments (Figure 26). Government spending in private hospitals can occur where state and territory governments contract with private hospitals to provide services to public patients, or where individual public hospitals buy services from private hospitals for public patients.

From 2021–22 to 2022–23, non-government spending on private hospitals increased by $0.6 billion (4.4%) in real terms. Spending on private hospitals funded by the Australian Government in real terms decreased by $0.2 billion (2.8%). During the same year, the number of separations in private hospitals increased by 5.0% (AIHW 2024).

Figure 26: Private hospital spending, by source of funds, constant prices (a), 2012–13 to 2022–23

The line graph shows that spending on private hospitals by the Australian Government, state and territory governments and non-government sector over the decade from 2012–13 to 2022–23. Non-government sector spent the most on private hospitals of all sources over the decade, increasing from $10.1 billion in 2012–13 to $13.6 billion in 2018–19 then fluctuated from 12.4 billion to 13.8 billion between 2019–20 and 2022–23. Australian Government spending on private hospitals fluctuated from $4.7 billion in 2012–13 to $7.6 billion in 2022–23. State and territory government spending on private hospitals increased from $0.1 billion in 2012–13 to $0.3 billion in 2022–23.

The line graph shows that spending on private hospitals by the Australian Government, state and territory governments and non-government sector over the decade from 2012–13 to 2022–23. Non-government sector spent the most on private hospitals of all sources over the decade, increasing from $10.1 billion in 2012–13 to $13.6 billion in 2018–19 then fluctuated from 12.4 billion to 13.8 billion between 2019–20 and 2022–23. Australian Government spending on private hospitals fluctuated from $4.7 billion in 2012–13 to $7.6 billion in 2022–23. State and territory government spending on private hospitals increased from $0.1 billion in 2012–13 to $0.3 billion in 2022–23.

⁽ᵃ⁾ Constant price health spending is in 2022–23 prices.

Source: AIHW Health Expenditure Database (Table 31).

 

AIHW 2024, Admitted patient care, Canberra: AIHW. Viewed 1 September 2024.

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