Health spending reaches $130b: report

26 Sep 2012, 8:33 am   -   Source: AAP
Health spending reached $130.3b in 2010/11 up from $122.5b the year before, a new report reveals. (AAP)

Health spending reached $130.3b in 2010/11 up from $122.5b the year before, a new report reveals. (AAP)

Health spending reached $130.3 billion in 2010/11 up from $122.5 billion the year before, a new report reveals.

Health spending jumped 6.5 per cent in 2010/11 but dipped slightly as a percentage of gross domestic product (GDP), new figures reveal.

Expenditure on health reached $130.3 billion, up from $122.5 billion in 2009/10, the Australian Institute of Health and Welfare (AIHW) says.

As a percentage of GDP it came to 9.3 per cent in 2010/11, down from 9.4 per cent in the previous year.

"In recent years the ratio of health expenditure to GDP has risen. However this was largely the result of a slowing in GDP growth following the global financial crisis rather than extraordinary health expenditure growth," AIHW director David Kalisch said in a statement.

"This situation now appears to have stabilised somewhat."

On average $5796 is spent on the health needs of every Australian each year.

The largest component of the expenditure increase in 2010/11 was a $2.2 billion rise in spending on public hospitals. Spending on medications grew by $2.1 billion.

The commonwealth's share of the $38.9 billion spent on public hospitals was 40.3 per cent, while state and territory governments kicked in 49.5 per cent. Other spending came from private health funds and individuals.

Prime Minister Julia Gillard in early 2011 had to walk away from her predecessor Kevin Rudd's bold vision for the commonwealth to become the 60 per cent majority funder of public hospitals.

Instead, the federal government is aiming to fund 50 per cent of future growth costs by 2018.

It's estimated the commonwealth will pay 45 per cent of total costs by 2030 - up from 40 per cent now.

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