Trends in Health Expenditure

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Trends in Health Expenditure

• Lindy Ingham
• Senior Analyst
• Expenditure Unit

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Overview of presentation

• The Australian health care system and the two
  views of its flow of funds
• Major trends in health expenditure and its
  funding
• Comparisons with other countries
• Other snapshots of health expenditure

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The Australian health care system and its major
flow of funds
Rebates personal benefit payments
Individuals
Out-of-pocket payments co-payments
State Territory Governments
Direct grants and expenditure
Non-government service providers Private
hospitalsMedical practitionersResidential aged
care facilitiesPharmaceutical retailersDental
practitionersOther health professionalsAdministr
ation
Direct payments to service providers
Australian Government
Direct payments to service providers
Purchase of services for veterans
Specific Purpose Payments
Contributions (Premiums)
Direct grants and expenditure
State Territory Government providers Public
hospital servicesAmbulancePublic health
servicesCommunity health servicesResearchAdmini
stration
Benefits paid
Payments for services
Australian Gov (DVA)
30 rebate on premiums
Payments for services
Injury compensation
Purchase of services for veterans
Benefits paid
Private health insurers
Individuals
30 rebate on premiums
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Health funding and expenditure

• Health funding is reported on the basis of who
  provides the funds that are used to pay for
  health expenditure.
• Health expenditure is reported in terms of who
  incurs the expenditure, rather than who
  ultimately pays for that expenditure

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Health expenditure matrix, 2001-02, by area of
expenditure and source of funds, Australia
(preliminary estimates)
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Total health expenditure and GDP, current prices
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Health inflation ()
(a)
Based on the implicit price deflator for GDP
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Total health expenditure, by source of funds,
200102
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Total health expenditure by source of funds,
1991-92 to 2001-02
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Non-government funding of health expenditure,
current prices, 200102
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Individuals share of private funding (net of
other non-government expenditure)
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Recurrent health expenditure, by area of
expenditure, 2001-02
Other health
Public
services
hospitals
Pharmaceutic
16.5
27.3
als
14.3
Dental
services
Private
Other
5.3
hospitals
professional
High level
Medical
8.2
services
residential
services
4.0
aged care
17.8
6.6
Total recurrent expenditure 62,693 million
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Sources of growth in health expenditure, constant
prices, 1991-92 to 2000-01
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Components of increase in nominal health
expenditure, 1991-92 to 2000-01
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Health capital outlays, current prices, by source
of funds (m)
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Health expenditure GDP ratioselected OECD
countries
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Components of nominal growth in health
expenditure, 1991 to 2001 ()
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Government expenditure as a share of total health
expenditure ()
Australia
Canada
France
Japan
New Zealand
United Kingdom
United States
OECD
95.3
85.3
75.3
65.3
Percentage share
55.3
45.3
35.3
25.3
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
Year
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Health expenditure for Aboriginal and Torres
Strait Islander people

• Two studies have been published to date on this
  topic 1995-96 (published in 1999) and 1998-99
  (published in 2001)
• Total recurrent expenditure on health services
  for Aboriginal and Torres Strait Islander people
  during 199899 was 1,245 million
• Average spending on Indigenous people (3,065 per
  person) was 22 higher than for other Australians
• Next study, covering 2001-02 is due for release
  later in 2004

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Public health expenditure

• Three studies to date have been published on this
  topic 199899 and 199900 and the latest, just
  released, for 200001
• Total expenditure on public health in Australia
  was 987 million in 200001
• 1.7 of recurrent health expenditure is directed
  to public health expenditure

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• Thank you