Federal election campaign information 2010: Who is funding Australian hospitals?

By now no-one is in doubt that this is an election year across Australia and, if Tony Abbott, Barnaby Joyce, Joe Hockey, Stephen Conroy, Jenny Macklin and Nicola Roxon are any indication, this will be a year filled to the brim with politically motivated misinformation.

Although I (like many others) have come to expect a high degree of doublespeak and obfuscation from those elected to federal and state parliaments, it is not something the electorate should tolerate.

The 2007 federal election campaign demonstrated that NSW North Coast candidates for elected office had not always factored in the possibility that voters would use the Internet to check the 'facts' they presented. At least one of these local candidates had obviously hoped that his face and a soundbite would last longer in voters' minds than the truth - needless to say he was spectacularly unsuccessful in his bid for a parliamentary seat.

Hopefully this year's local candidates will be mindful of that salutary lesson and stick to factual accounts and realisitic promises.

The public hospital system is a constant source of concern and debate on health will likely form part of the election campaigns of all major political parties during the 2010 federal election.
To offset at least some of the inevitable mudslinging, here are excerpts from The state of our public hospitals:June 2009 report (C'wealth Dept of Health & Aging) with regard to beds, funding sources and basic costs.

How many hospitals were there?

At June 2008, Australia had 1,314 hospitals, of which 58 per cent (762) were public.

There were 742 public acute hospitals in Australia, ranging from small remote hospitals with a few beds providing a narrow range of services, to large metropolitan hospitals providing a wide range of specialist services.

How many beds were there?

The number of available beds indicates the availability of hospital services. An available bed is defined as a bed which is immediately available for use by a patient and may include same-day beds, neonatal cots, hospital-in-the-home and overnight beds.

In 2007–08, the total number of available beds nationally was 84,235.
In 2007-08, the number of available public hospital beds was 56,467 (67 per cent). This means there were around 2.5 beds per 1,000 people.
The number of available private hospital beds was 27,768 or about 1.3 beds per 1,000 people.

Who funds hospitals?

Australia spent an estimated $94 billion on all health care in 2006–07 (the latest year for which this figure is available). More than a quarter ($27 billion) was spent on public hospital services. Almost 8 per cent ($7.1 billion) was spent on private hospitals.

The Australian Government funded around 40 per cent of public hospital services expenditure ($10.8 billion) through public hospital funding, rebates for private health insurance, hospital services for veterans and direct expenditure such as payments for blood products, specialised drugs and grants for diagnostic equipment.

State, Territory and Local Governments contributed 53 per cent ($14.3 billion) of public hospital services funding. Private sources contributed 7 per cent ($1.9 billion), these included private health insurance benefits and out-of-pocket payments from patients.

In comparison, more than 70 per cent (nearly $5 billion) of private hospital expenditure came via private health insurers. Of this, over 23 per cent (nearly $1.7 billion) was provided by the Australian Government through health insurance premium rebates and 47 per cent ($3.3 billion) came from premiums paid by contributors and other revenue to insurers. These figures do not include funding provided by the Australian Government through the Medicare Benefits and Pharmaceutical Benefits Schedules or for blood and blood products for patients in private hospitals.

What was the cost of an average patient?

The average cost of a patient treated in a public hospital in 2007–08 was $4,232 (excluding depreciation). This cost covers nursing and medical staff, supplies such as surgical dressings and support services such as meals, cleaning and security.

Salaries for medical and nursing staff represent 50 per cent of admitted patient costs.