Hospitals

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Introduction Public hospitals Private hospitals

During 2023–24, an estimate of $113.8 billion was spent on Australia's public and private hospitals, with $53.1 billion (46.7%) funded by state and territory governments and $41.2 billion (36.2%) by the Australian Government. The remaining $19.5 billion (17.1%) came from non‑government sources (Figure 24). 

Spending on hospitals in 2023–24 was 1.2% higher than in 2022–23 and below the 4.0% average annual growth for the decade. The increase in 2023–24 resulted from increased funding by states and territories (2.2%) and non-government sources (2.4%) in real terms while the Australian Government spending declined by 0.7%. This increase in hospital spending was accompanied by a 4.1% increase in the number of separations in 2023–24 compared to 2022–23 (AIHW 2025). 

Figure 24: Spending on hospitals, by source of funds, constant prices (a), 2013–14 to 2023–24

The line graph shows hospital spending by the Australian Government, state and territory governments, and the non-government sector from 2013–14 to 2023–24. State and territory governments consistently recorded the highest hospital spending each year. Their spending increased from $33.1 billion in 2013–14 to $53.1 billion in 2023–24. Australian Government spending rose from $27.4 billion in 2013–14 to $41.2 billion in 2023–24. Non-government 

The line graph shows hospital spending by the Australian Government, state and territory governments, and the non-government sector from 2013–14 to 2023–24. State and territory governments consistently recorded the highest hospital spending each year. Their spending increased from $33.1 billion in 2013–14 to $53.1 billion in 2023–24. Australian Government spending rose from $27.4 billion in 2013–14 to $41.2 billion in 2023–24. Non-government 
  1.  Constant price health spending is in 2023–24 prices.

Source: AIHW Health Expenditure Database (Table 29).

Public hospitals

Spending on public hospitals was estimated to be $90.8 billion in 2023–24 (Figure 25). Spending was up from $89.9 billion in 2022–23, a real increase of 1.0%, which was below the average annual real growth over the decade (4.2%).

Figure 25: Public hospital spending, by source of funds, constant prices (a), 2013–14 to 2023–24

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 2013–14 to 2023–24. State and territory governments spent the most on public hospitals of all sources over the decade, increased every year to $52.7 billion in 2023–24. Similarly, Australian Government spending on public hospitals increasing every other year to $33.1 billion in 2023–24. Non-government spending on public hospitals fluctuated around $4.2 billion to $5.4 billion over the decade up to 2023–24.

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 2013–14 to 2023–24. State and territory governments spent the most on public hospitals of all sources over the decade, increased every year to $52.7 billion in 2023–24. Similarly, Australian Government spending on public hospitals increasing every other year to $33.1 billion in 2023–24. Non-government spending on public hospitals fluctuated around $4.2 billion to $5.4 billion over the decade up to 2023–24.

⁽ᵃ⁾ Constant price health spending is in 2023–24 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 2023–24, state and territory governments contributed $52.7 billion (58.0%) to spending on public hospitals. This was followed by the Australian Government with $33.1 billion (36.5%) and non-government entities with $5.0 billion (5.5%). The Australian Government’s spending decreased in real terms by 0.8% while spending by state and territory governments rose by 1.8% and non-government sources by 4.6% (Table 30). During the same time, the number of separations in public hospitals increased by 5.2% (AIHW 2025). See more details on the Australian Government spending on public hospital services in Table A11. 

Over the 10-year period to 2023–24, overall spending increased in real terms by 4.2% on average per year, with the highest increase from state and territory governments (4.8%) and the Australian Government (4.1%), while the non-government sector decreased by 0.2% (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 (63.1%, $14.5 billion) of the estimated $23.0 billion spent on private hospitals was funded by the non-government sector:

  • private health insurance providers, $10.5 billion
  • individuals, $2.4 billion
  • other non-government, $1.6 billion (Table A6).

Another estimated $8.0 billion (34.9%) was spent by the Australian Government and $0.5 billion (2.1%) 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 2022–23 to 2023–24, non-government spending on private hospitals increased by $0.2 billion (1.7%) in real terms. The Australian Government spending on private hospitals remained largely unchanged. During the same period, the number of separations in private hospitals increased by 2.1% (AIHW 2025).

Figure 26: Private hospital spending, by source of funds, constant prices (a), 2013–14 to 2023–24

The line graph shows spending on private hospitals by the Australian Government, state and territory governments, and the non-government sector over the decade from 2013–14 to 2023–24. The non-government sector spent the most on private hospitals throughout the period, with spending increasing from $11.1 billion in 2013–14 to $14.3 billion in 2018–19, then fluctuating between $13.0 billion and $14.6 billion from 2019–20 to 2023–24. Australian Government spending fluctuated over the decade, rising from $5.3 billion in 2013–14 to $8.0 billion in 2023–24. State and territory government spending increased steadily from $0.1 billion in 2013–14 to $0.5 billion in 2023–24.

The line graph shows spending on private hospitals by the Australian Government, state and territory governments, and the non-government sector over the decade from 2013–14 to 2023–24. The non-government sector spent the most on private hospitals throughout the period, with spending increasing from $11.1 billion in 2013–14 to $14.3 billion in 2018–19, then fluctuating between $13.0 billion and $14.6 billion from 2019–20 to 2023–24. Australian Government spending fluctuated over the decade, rising from $5.3 billion in 2013–14 to $8.0 billion in 2023–24. State and territory government spending increased steadily from $0.1 billion in 2013–14 to $0.5 billion in 2023–24.

⁽ᵃ⁾ Constant price health spending is in 2023–24 prices.

Source: AIHW Health Expenditure Database (Table 31).

AIHW 2025, Admitted patient care, Canberra: AIHW. Viewed 1 September 2025,

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