Key findings
Some hospitals were found to have twice the average cost per unit of activity in 2011–12 compared to others in the same peer group, after adjusting for the different types of services provided and complexity of patients (Figure 2 and Figure 3). The report highlights the top 10% and bottom 10% for major metropolitan hospitals (see tables).
Across the different types of hospitals in Australia, the average cost per unit of activity for acute admitted patients was as follows:
- Using Cost per NWAU: costs were more than twice as high from the lowest to the highest hospital, ranging from $3,100 to $6,400
- Using Comparable Cost of Care: costs were almost twice as high from the lowest to the highest hospital, ranging from $3,700 to $6,800.
The results are broadly the same for the two different measures, Cost per NWAU and Comparable Cost of Care.
Cost per NWAU
Across major metropolitan hospitals, the average Cost per NWAU for acute admitted patients at one hospital was 87% higher compared to another hospital, ranging from $3,100 to $5,800.
|
Top 10% of hospitals for this peer group: |
|
|---|---|
| The Canberra Hospital (ACT) | $5,800 |
| Sir Charles Gairdner Hospital (WA) | $5,500 |
| Calvary Public Hospital (ACT) | $5,300 |
| Logan Hospital (Qld) | $5,300 |
| Bottom 10% of hospitals for this peer group: | |
|---|---|
| Dandenong Campus (Vic) | $3,400 |
| Royal Melbourne Hospital [Parkville] (Vic) | $3,400 |
| Sunshine Hospital (Vic) | $3,400 |
| The Northern Hospital [Epping] (Vic) | $3,400 |
| Maroondah Hospital [East Ringwood] (Vic) | $3,100 |
Comparable Cost of Care
Across major metropolitan hospitals, the Comparable Cost of Care for acute admitted patients at one hospital was 76% higher compared to another hospital, ranging from $3,700 to $6,500.
|
Top 10% of hospitals for this peer group: |
|
|---|---|
| The Canberra Hospital (ACT) | $6,500 |
| Calvary Public Hospital (ACT) | $6,300 |
| Sir Charles Gairdner Hospital (WA) | $5,900 |
| Logan Hospital (Qld) | $5,700 |
| The Prince Charles Hospital (Qld) | $5,700 |
| Bottom 10% of hospitals for this peer group: | |
|---|---|
| Royal Melbourne Hospital [Parkville] (Vic) | $3,900 |
| Sunshine Hospital (Vic) | $3,900 |
| The Northern Hospital [Epping] (Vic) | $3,900 |
| Western Hospital [Footscray] (Vic) | $3,900 |
| Dandenong Campus (Vic) | $3,800 |
| Maroondah Hospital [East Ringwood] (Vic) | $3,700 |
Figure 1: What is measured: the difference between Cost per NWAU and Comparable Cost of Care
Across large metropolitan hospitals:
- The average Cost per NWAU for acute admitted patients at one hospital was 96% higher compared to another hospital, ranging from $3,200 to $6,400 (Figure 2)
- The Comparable Cost of Care for acute admitted patients at one hospital was 71% higher compared to another hospital, ranging from $4,000 to $6,800 (Figure 3).
Across major regional hospitals:
- The average Cost per NWAU for acute admitted patients at one hospital was 46% higher compared to another hospital, ranging from $3,600 to $5,300 (Figure 2)
- The Comparable Cost of Care for acute admitted patients at one hospital was 36% higher compared to another hospital, ranging from $4,200 to $5,800 (Figure 3).