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5216.0 - Australian National Accounts: Concepts, Sources and Methods, 2000  
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 15/11/2000   
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06 Health

14.79 This item includes all personal outlays on health products and services. The Medicare levy is considered to be a direct tax on income and is not part of HFCE. The net amount actually paid by households for Medicare-covered services is included. Refunds obtained by households from Medicare are considered to be part of government final consumption expenditure and hence are not included in HFCE. Refunds from health insurance funds are not deducted in calculating these items, but they are offset against the premiums that health insurance funds charge in calculating the insurance service charge that households pay for medical insurance - see Insurance (12.3).

06.1 Medicines, medical aids and therapeutic appliances

Description

14.80 Includes purchases of medicines (both prescription and non-prescription), medical aids and therapeutic appliances (including spectacles and hearing aids) by resident households. Pharmaceutical benefits paid by governments to subsidise the cost of prescribed medicines are included in Government final consumption expenditure.

Sources and methods

14.81 Data from the Retail Census are used as benchmarks and monthly industry data from the survey of Retail Trade as quarterly indicators. For years when census data are not available, annual estimates are derived by summing the quarterly estimates.

Volume estimates

14.82. Current price estimates of purchases of medicines, medical aids and therapeutic appliances in Australia are revalued using the relevant components of the CPI.

06.2 Ambulatory health care

Description

14.83 This component comprises outlays by resident households on ambulatory health care provided by medical practitioners, dentists, opticians, physiotherapists, podiatrists, acupuncturists, clinical psychologists and similar paramedical practitioners.

Sources and methods

14.84 Estimates are obtained using information provided by the Commonwealth Department of Health and Aged Care about fees charged by medical practitioners and other health professionals for services attracting a Medicare benefit. Data from the Australian Institute of Health and Welfare and the Australian Taxation Office are used to compile estimates for those services which do not attract a Medicare benefit.

Volume estimates

14.85 Current price estimates of purchases of ambulatory health care in Australia are revalued using the relevant components of the CPI.

06.3 Hospital, ambulance services and nursing home care

Description

14.86 This component comprises outlays by resident households on in-patient and out-patient health care provided by public and commercial hospitals and nursing homes; and current expenditure by non-profit organisations providing health care. (Hostel accommodation services for the aged or disabled are included in HFCE on Accommodation services (11.2).)

14.87 The fees paid by patients in the long-term care of nursing homes may not cover the entire cost of their stay. In many cases, the deficit is made up by governments agreeing to fund the operating deficit of the nursing home. Current grants by government to NPISHs providing hospital and nursing home care are considered to finance part of the final consumption expenditure of the NPISH and are included in HFCE.

Sources and methods

Outlays by resident households on in-patient and out-patient health care

14.88 Quarterly information about health insurance benefits payable to households for care in hospitals is available from the Private Health Insurance Administration Council. These details provide an indicator for estimating fees paid by households to all types of hospitals. This total may then be split into public and commercial hospitals on the one hand, and private non-profit hospitals on the other. In addition to this, similar quarterly information is received about public hospitals and nursing homes from the State and Territory Health Departments. Quarterly information about transfers from general government (weekly nursing home benefits, and grants to fund operating deficits) is available from the ABS Public Finance Section.

14.89 Annual estimates for public hospitals are the sum of the quarters, although annual reports of the State and Territory Health Departments are used to cross-check the annual totals. Annual benchmark data for public nursing homes, and private hospitals and nursing homes, are taken from the Australian Institute of Health and Welfare Information Bulletin which is published about two years after the reference year. Finally, annual information provided by the ABS Public Finance Section is used to benchmark general government transfers for the purpose of health care. This supersedes the quarterly information provided earlier.

Current expenditure by non-profit health care institutions

14.90 This element covers three subcategories: ambulance services, non-profit hospitals and nursing homes, and other non-profit health care institutions.

      • Ambulance services - expenditure on ambulance services is benchmarked using information contained in State and Territory Auditors'-General Annual Reports and those of the St John's Ambulance Association. No information is available quarterly so quarterly estimates are made using quarterly movements in related series as indicators.
      • Non-profit hospitals and nursing homes - these are mostly run by religious organisations. The Australian Institute of Health and Welfare Information Bulletin does not distinguish profit-making from non-profit hospitals and nursing homes, so in practice the estimates for these establishments are made in conjunction with those for commercial establishments.
      • Other non-profit health care institutions - this covers organisations such as home nursing services and community health clinics. They are mainly or entirely funded by current grants from general government. Information about these grants is provided quarterly and annually by the ABS Public Finance Section.

Volume estimates

14.91 Current price estimates of purchases of hospital and ambulance services and nursing home care in Australia are revalued using the relevant components of the CPI.

Total: 06 Health

Volume estimates

14.92 Current price estimates of purchases of health services by Australian residents overseas are revalued using a composite index of overseas CPIs.

14.93 Current price estimates of purchases of health services by non-residents in Australia are revalued using the relevant components of the CPI.

14.94 In deriving the chain volume estimates of purchases of health services, the elemental volume estimate of purchases by non-residents in Australia is subtracted from the aggregate of the other elemental volume components above.


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