140b pill for health servicesThe Australian Institute of Health and Welfare (AIHW) has found that more than $140 billion was spent on health in Australia in 2011–12.
The AIHW report, Health Expenditure Australia 2011-12, shows health spending was estimated to be $140.2 billion in 2011-12—up from $132.6 billion in 2010-11 and from $82.9 billion 10 years earlier in 2001-02 (after adjusting for inflation).
Almost 70 per cent of total health expenditure during 2011-12 was funded by Governments, with the Australian Government contributing 42.4 per cent, and State and Territory Governments 27.3 per cent. The remaining 30.3 per cent was funded by individuals, private health insurers, and other non-Government sources.
As a proportion of Australia’s GDP, health spending was 9.5 per cent in 2011-12, up from 9.3 per cent in 2010-11 and 8.4 per cent in 2001-02.
Chief Executive of AIHW, David Kalisch said that over the decade from 2001-02, the ratio of health spending as a proportion of GDP and taxation revenue had risen, particularly following the global financial crisis.
“Our analysis of health inflation suggests that in recent years annual price rises in the broader economy have generally been greater than price rises in the health sector,'' Mr Kalisch said.
He said the estimated recurrent expenditure on health per person in 2011-12 was $5,881, a rise from $5,681 per person in 2010-11 and $4,062 in 2001-02 (after adjusting for inflation).
“Public hospital spending was the biggest component of health expenditure in 2011-12, accounting for $42 billion, or 31.8 per cent of recurrent expenditure. The largest component of the overall rise in health spending was also spending on public hospital services (up by $2.1 billion), making up almost a third of the growth in recurrent health expenditure,” Mr Kalisch said.
“The Australian Government’s share of public hospital funding was 38.2 per cent in 2011-12, down from 39.6 per cent in 2010-11. The State and Territory Governments’ share of public hospital expenditure was 53.3 per cent in 2011-12, up from 52 per cent in 2010-11.”
To view the report go to www.aihw.gov.au
Edition 381, 1 October 2013 2013