Australian Institute of Health and Welfare (2022) Australia's hospitals at a glance , AIHW, Australian Government, accessed 06 July 2022.
Australian Institute of Health and Welfare. (2022). Australia's hospitals at a glance . Retrieved from https://www.aihw.gov.au/reports/hospitals/australias-hospitals-at-a-glance
Australia's hospitals at a glance . Australian Institute of Health and Welfare, 23 June 2022, https://www.aihw.gov.au/reports/hospitals/australias-hospitals-at-a-glance
Australian Institute of Health and Welfare. Australia's hospitals at a glance [Internet]. Canberra: Australian Institute of Health and Welfare, 2022 [cited 2022 Jul. 6]. Available from: https://www.aihw.gov.au/reports/hospitals/australias-hospitals-at-a-glance
Australian Institute of Health and Welfare (AIHW) 2022, Australia's hospitals at a glance , viewed 6 July 2022, https://www.aihw.gov.au/reports/hospitals/australias-hospitals-at-a-glance
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Public and private hospitals are funded from a range of sources, including the Australian Government, state and territory governments, private health insurance funds and out-of-pocket payments by individuals. Hospitals can vary greatly in terms of the types of services they provide and the patients they treat and their main source of funding along with other factors.
In 2019-20, hospitals accounted for 41% of all health expenditure—$83.5 billion of $202.5 billion. This was comprised of an estimated $35.9 billion (43%) funded by state and territory governments and an estimated $31.4 billion (38%) by the Australian Government (excluding Medicare Benefits Schedule (MBS) and some Pharmaceutical Benefits Scheme (PBS) spending that relates to services provided in hospitals and that have not historically been treated as hospital spending). The remaining $16.2 billion (19%) came from non-government sources (Figure 1).
Spending per person increased by an average of 3.1% per year between 2014–15 and 2019–20 after adjusting for inflation (4.2% for public hospital care and 1.3% for private hospital care).
The line chart shows the expenditure on public and private hospitals by the Australian Government, state and territory governments and non-government entities over the period of 2010–11 to 2019–20. Over this period, state and territory governments consistently spent the most on public hospitals whilst non-government entities consistently spent the most on private hospitals. In 2019–20, the Australian Government spent $26.9 billion and $4.6 billion on public and private hospitals respectively compared with state and territory governments who spent $34.9 billion and $1.1 billion respectively and non-government entities who spent $4.7 billion and $11.5 billion respectively.
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:
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.
In 2019–20, 71% ($11.5 billion) of the estimated $17.1 billion spent on private hospitals was funded by the non-government sector:
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).
Health Expenditure Australia 2019-20, About - Australian Institute of Health and Welfare
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