Australian Institute of Health and Welfare (2019) Hospital resources 2017–18: Australian hospital statistics, AIHW, Australian Government, accessed 29 May 2022.
Australian Institute of Health and Welfare. (2019). Hospital resources 2017–18: Australian hospital statistics. Retrieved from https://www.aihw.gov.au/reports/hospitals/hospital-resources-2017-18-ahs
Hospital resources 2017–18: Australian hospital statistics. Australian Institute of Health and Welfare, 26 June 2019, https://www.aihw.gov.au/reports/hospitals/hospital-resources-2017-18-ahs
Australian Institute of Health and Welfare. Hospital resources 2017–18: Australian hospital statistics [Internet]. Canberra: Australian Institute of Health and Welfare, 2019 [cited 2022 May. 29]. Available from: https://www.aihw.gov.au/reports/hospitals/hospital-resources-2017-18-ahs
Australian Institute of Health and Welfare (AIHW) 2019, Hospital resources 2017–18: Australian hospital statistics, viewed 29 May 2022, https://www.aihw.gov.au/reports/hospitals/hospital-resources-2017-18-ahs
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Information on funding and expenditure over time are expressed in both current and constant prices. Current prices reflect the amounts reported for each reference period. Constant prices adjusts current prices for the effects of inflation; that is, it aims to remove the effects of inflation. Hence, prices in different years can be compared on a dollar-for-dollar basis.
The constant prices presented in this chapter were derived from the current prices using the ABS’s Government Final Consumption Expenditure, State and Local—Hospitals and Nursing Homes deflator for both public and private hospitals, expressed in terms of prices in final reference year (that is, using 2016–17 as the base year for funding, and using 2017–18 as the base year for recurrent expenditure).
Data visualisation indicating funding sources for public and private hospitals, constant prices ($ billion) 2012-13 to 2016-17
Public and private hospitals are funded from a range of different sources, reflecting the types of patients they treat and the services they provide (see Appendix A for more information).
Emergency department and outpatient services are mainly funded by governments, whereas admitted patient services are commonly funded by both private (non-government) and government sources.
In 2016–17, the state and territory governments and the Australian Government provided most of the funds for public hospitals:
Between 2012–13 and 2016–17 (after adjusting for inflation):
Between 2012–13 and 2016–17:
Public hospitals differ in how they are funded by the Australian Government:
In consultation with jurisdictions, the Independent Hospital Pricing Authority (IHPA) develops block-funding criteria and identifies whether hospital services and functions are eligible for block-funding only, activity-based funding only or a mixture of activity-based and block funding.
In 2017–18, 285 public hospitals were designated as activity-based funded hospitals and 403 public hospitals as block-funded. The funding designation was not assigned for 5 hospitals.
It should be noted that the funding designation information reported for the NPHED does not include a category for hospitals that are funded partly by activity-based funding and partly by block funding. See Appendix A for more information.
More information on:
Available for download in the Data section of this report.
More information on funding of public hospitals is available in:
This section presents information on public and private hospital expenditure, including information on expenditure over time, in both current and constant prices.
Recurrent expenditure is the money spent by hospitals, local hospital networks and state/territory health authorities on the goods and services they use, such as salary payments, drugs, medical and surgical supplies.
Two expenditure totals for public hospitals are reported here. One that includes depreciation and another excluding depreciation.
Recurrent expenditure can be categorised into salary and non-salary expenditure:
Salary expenditure includes salaries and wages, payments to staff on paid leave, workers' compensation, leave, and salaries paid to contract staff where the contract was for the supply of labour and where full-time equivalent staffing data were available.
Non-salary expenditure includes payments to Visiting medical officers, superannuation payments, drug supplies, medical and surgical supplies (which includes consumable supplies only and not equipment purchases), food supplies, domestic services, repairs and maintenance, patient transport, administrative expenses, interest payments, depreciation and other recurrent expenditure.
The total recurrent expenditure information presented from 2014–15 to 2017–18 is not comparable with the total recurrent expenditure information presented for 2013–14. The data for 2014–15 to 2017–18 includes expenditure at the LHN level and at the state/territory health authority level (for 2014–15, excludes Queensland for both LHN level and at the state/territory health authority level). Therefore, percentage changes (increase or decrease) between 2013–14 and 2017–18 are not shown. See Appendix A for more information on limitations of the data related to recurrent expenditure.
For private hospitals, the recurrent expenditure data reported for 2016–17 are considered comparable with the data reported for 2012–13 to 2015–16. Recurrent expenditure for private hospitals in 2016–17 was $13.8 billion. In constant price terms (adjusted for inflation), recurrent expenditure by private hospitals increased by an average of 4.5% each year between 2012–13 and 2016–17 (ABS 2018).
Is available in tables 2.4 through 2.8 and S2.1, available to download in the Data section of this report.
Information on data limitations and methods is available in Appendix A and Appendix B.
IHPA (Independent Hospitals Pricing Authority) 2016. National efficient cost determination 2016–17, March 2016. Sydney: IHPA.
Health expenditure Australia 2016–17. Health and welfare expenditure series no. 64x. Cat. no. HWE 74. Canberra: AIHW.
Private hospitals Australia 2016–17. ABS cat. no. 4390.0. Canberra: ABS.
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