Public hospitals
In 2019–20, $66.4 billion was spent on public hospitals in Australia by the Australian Government, state and territory governments, and non-government sources. State and territory governments, which have primary responsibility for administering public hospitals, contributed the most funding:
- state and territory governments—$34.9 billion (56%)
- Australian Government—$26.8 billion (40%) (not including payments made by the Australian Government as Medicare benefits associated with private patients)
- non-government entities—$4.7 billion (7.0%) (including individuals and private health insurers).
Between 2009–10 and 2019–20, Australian Government expenditure on public hospitals increased 4.4% per year on average and state and territory expenditure increased 3.4% per year on average.
Private hospitals
In 2019–20, 71% ($11.5 billion) of the estimated $17.1 billion spent on private hospitals was funded by the non-government sector:
- private health insurance providers—$8.6 billion (50%)
- Australian Government—$4.5 billion (27%)
- individuals—$1.5 billion (8.9%)
- other non-government—$1.4 billion (8.2%)
- state and territory governments—$1.1 billion (6.2%).
Between 2009–10 and 2019–20, total funding increased by an average of 3.0% each year. The proportion of funding provided by the Australian Government increased 0.6% and funding from state and territory governments increased, on average, 8.1%. This may have been, at least in part, a result of the introduction of means testing of the private health insurance premium rebate in 2012, which shifted funding from the Australian Government to private health insurance providers (AIHW 2019).
Where do I go for more information?
Health Expenditure Australia 2019-20, About - Australian Institute of Health and Welfare