EXPENDITURE

Recurrent expenditure for Acute and psychiatric hospitals during 2010-11 amounted to $8,949 million, up 7.1% from 2009-10.

Wages and salaries (including on-costs such as employer contributions to superannuation and payroll tax) represented 50.6% of recurrent expenditure in 2010-11, down from 51.6% in 2009-10. Victoria recorded the highest proportion of total recurrent expenditure that was spent on wages and salaries, at 52.6%, while New South Wales had the lowest proportion, at 48.4%.

The next largest component of recurrent expenditure was Drug, medical, pharmaceutical and surgical supplies, which accounted for 27.7% of the total, as it was in 2009-10. This varied from 23.5% in Western Australia to 29.9% in New South Wales.

When recurrent expenditure is adjusted to remove the effects of price changes over the period, the average annual increase over the ten years from 2000-01 ($5,775 million) to 2010-11 ($8,828 million) was 4.3%. For further information on the use of chain volume measures to adjust income and expenditure, see Explanatory Note 25.

(a) Laspeyres input cost index was used to provide real income and expenditure. See Explanatory Note 25 for further information.
(b) Data for the 2007–08 reference year are not available. See Explanatory Note 4 for further information.


The average expenditure per patient day was $1,123 in 2010-11 compared with $1,102 in 2009-10. This ranged from $1,270 per patient day in in Western Australia to $1,100 per patient day in Victoria. When average expenditure per patient day is adjusted to remove the effects of price changes over the period, the average annual increase over the ten years from 2000-01 ($886) to 2010-11 ($1,108) was 2.3%.

Gross capital expenditure for Acute and psychiatric hospitals during 2010-11 increased by 13.3% from 2009-10 to $788 million. In the three largest states, over 60% of the gross capital expenditure was spent on Land and buildings, with Major medical equipment accounting for just under 20%. Capital expenditure is volatile in the Private Health sector. Significant purchases or construction undertaken in any given year are unlikely to be repeated on a regular basis. Net capital expenditure totalled $757 million in 2010-11.

(a) Laspeyres input cost index was used to provide real expenditure. See Explanatory Note 25 for further information.
(b) Data for the 2007–08 reference year are not available. See Explanatory Note 4 for further information.

Table 2.15 PRIVATE ACUTE AND PSYCHIATRIC HOSPITALS, Expenditure —State and territories - 2010-11
			NSW	Vic.	Qld	SA	WA	Tas., NT & ACT(a)	Aus.
Expenditure ($'000)(b)
	Labour costs, including on-costs
		Wages and salaries, including on-costs	1 176 153	1 260 474	1 036 265	np	590 986	np	4 531 135
		Contract/consultancy payments for medical/health services	61 304	63 848	44 308	np	51 455	np	241 422
	Drug, medical, pharmaceuticals and surgical supplies(c)		727 809	627 794	569 094	np	271 794	np	2 479 410
	Food supplies		31 526	30 044	33 706	6 833	17 364	3 138	122 611
	Repair and maintenance		31 567	16 179	30 138	np	14 271	np	101 135
	Fuel and power		27 232	23 333	24 263	np	12 389	np	98 249
	Patient transport		983	4 899	203	np	1 550	np	8 732
	Depreciation and amortisation		83 736	83 547	88 442	np	40 222	np	321 488
	Interest		12 237	12 119	12 756	np	2 778	np	49 743
	Non-labour contract expenses		80 746	109 765	59 919	np	28 233	np	310 287
	Other (d)		197 076	165 868	141 322	np	106 265	np	684 690
	Total (e)		2 430 369	2 397 870	2 040 416	np	1 137 307	np	8 948 902
Wages and salaries, including on-costs, as a proportion of total expenditure (%)			48.4	52.6	50.8	49.0	52.0	50.6	50.6
Average expenditure ($)(f)
	Per patient separation		3 140	3 308	3 194	np	3 217	np	3 171
	Per patient day		1 140	1 100	1 083	np	1 270	np	1 123
Gross Capital expenditure ($'000)(g)
	Land and buildings		228 293	129 777	98 545	np	7 465	np	473 478
	Major medical equipment		69 385	37 847	30 979	np	15 620	np	166 471
	Information technology		11 421	12 617	4 571	np	2 437	np	31 796
	Other capital expenditure		50 422	23 666	23 889	np	6 945	np	115 930
	Total (e)		359 521	203 907	157 984	np	32 467	np	787 675
Net Capital expenditure ($'000)(g)
	Land and buildings		228 293	113 497	97 294	np	7 465	np	455 767
	Major medical equipment		68 387	33 102	30 684	np	15 150	np	159 855
	Information technology		11 420	12 354	4 555	np	2 420	np	31 487
	Other capital expenditure		48 868	20 287	23 164	np	6 704	np	109 975
	Total (e)		356 968	179 240	155 697	np	31 739	np	757 084
np not available for publication but included in totals where applicable, unless otherwise indicated (a) Tasmania, the Northern Territory and the Australian Capital Territory have been aggregated to protect the confidentiality of the small number of hospitals in these states/territories. (b) Expenditure refers to expenditure on goods and services, which does not result in the creation or acquisition of fixed assets (new or second-hand). See Glossary for further information. (c) Including surgically implanted prostheses and homograft items. (d) Including contract services. (e) Figures have been rounded and discrepancies may occur between totals and the sums of the component items. (f) Average expenditure figures can vary considerably between hospitals depending on the type of services they provide. (g) Capital expenditure refers to expenditure in a period on the acquisition or enhancement of an asset (excluding financial assets). See Glossary for further information. Note that 2010-11 is the first year the ABS has had gross and net capital expenditure available for publication.

For profit hospitals had a lower average expenditure per patient day ($989) than Religious or charitable Not for profit hospitals ($1291) and Other Not for profit hospitals ($1,229) in 2010-11. In 2009-10, For profit hospitals spent $994 per patient day, compared to $1,248 for Religious or charitable Not for profit hospitals and $1,044 for Other Not for profit hospitals.

For profit hospitals and Religious or charitable Not for profit hospitals spent a slightly higher proportion of their total expenditure on wages and salaries (both 50.7%) than the Other Not for profit hospitals (49.2%). The largest percentage point change from 2009-10 was experienced by the Other Not for profit hospitals, who spent 53.5% of their total expenditure on wages and salaries in 2009-10.

Around two thirds (66.9%) of all gross capital expenditure undertaken by Australian Acute and psychiatric private hospitals was undertaken by the For profit sector. The largest component of gross capital expenditure was land and buildings, with nearly two thirds (65.4%) of gross capital expenditure by For profit hospitals being invested in land and buildings.

Table 2.16 PRIVATE ACUTE AND PSYCHIATRIC HOSPITALS, Expenditure — For profit/not for profit sector (a) - 2010-11
			For profit	Religious or charitable	Other (b)	Total
Expenditure ($'000)(c)
	Labour costs, including on-costs
		Wages and salaries, including on-costs	2 180 292	2 166 062	184 781	4 531 135
		Contract/consultancy payments for medical/health services	174 115	58 685	8 622	241 422
	Drug, medical, pharmaceuticals and surgical supplies(d)		1 198 824	1 188 719	91 867	2 479 410
	Food supplies		57 563	59 911	5 137	122 611
	Repair and maintenance		52 321	44 982	3 832	101 135
	Fuel and power		48 242	44 523	5 484	98 249
	Patient transport		5 649	2 784	299	8 732
	Depreciation and amortisation		136 586	174 907	9 995	321 488
	Interest		13 887	29 332	6 524	49 743
	Non-labour contract expenses		123 027	156 092	31 168	310 287
	Other (e)		310 360	346 473	27 857	684 690
	Total (f)		4 300 866	4 272 470	375 566	8 948 902
Wages and salaries, including on-costs, as a proportion of total expenditure (%)			50.7	50.7	49.2	50.6
Average expenditure ($)(g)
	Per patient separation		2 759	3 696	3 519	3 171
	Per patient day		989	1 291	1 229	1 123
Gross Capital expenditure ($'000)(h)
	Land and buildings		np	124 048	np	473 478
	Major medical equipment		np	64 655	np	166 471
	Information technology		10 776	20 685	335	31 796
	Other capital expenditure		71 449	43 267	1 214	115 930
	Total (f)		527 063	252 655	7 957	787 675
Net Capital expenditure ($'000)(h)
	Land and buildings		np	123 055	np	455 767
	Major medical equipment		np	62 697	np	159 855
	Information technology		10 558	20 606	323	31 487
	Other capital expenditure		66 903	41 986	1 086	109 975
	Total (f)		501 190	248 344	7 550	757 084
np not available for publication but included in totals where applicable, unless otherwise indicated (a) For definition of 'For Profit/not for profit sector', see Glossary. (b) Comprising bush nursing, community and memorial hospitals. (c) Expenditure refers to expenditure on goods and services, which does not result in the creation or acquisition of fixed assets (new or second-hand). See Glossary for further information. (d) Including surgically implanted prostheses and homograft items. (e) Including contract services (f) Total may include figures where providers were able to provide a total expenditure figure, without further breakdown of expenditure items, therefore the total will not equate to the sum of the individual items. (g) Average expenditure figures can vary considerably between hospitals depending on the type of services they provide. (h) Capital expenditure refers to expenditure in a period on the acquisition or enhancement of an asset (excluding financial assets). See Glossary for further information. Note that 2010-11 is the first year the ABS has had gross and net capital expenditure available for publication.

The average cost per patient day rose as hospital size increased, with the exception of the 0-25 bed hospitals.. This reflects the greater complexity of procedures undertaken at the larger hospitals. In 2010-11, recurrent expenditure per patient day (unadjusted for price changes) at Acute and psychiatric hospitals with over 200 beds was $1,369 compared with the average of $677 for hospitals with 26-50 beds.

The proportion of total expenditure that is spent on wages and salaries varied from 48.4% of expenditure by hospitals with 101-200 beds to 55.7% of expenditure by hospitals with 26-50 beds.

Table 2.17 PRIVATE ACUTE AND PSYCHIATRIC HOSPITALS, Expenditure —Hospital size (a) - 2010-11
			Number of beds
			0-25	26-50	51-100	101-200	Over 200	Total (e)
Expenditure ($'000)(b)
	Labour costs, including on-costs
		Wages and salaries, including on-costs	64 433	214 641	916 568	1 415 670	1 919 823	4 531 135
		Contract/consultancy payments for medical/health services	2 538	16 481	46 600	89 780	86 023	241 422
	Drug, medical, pharmaceuticals and surgical supplies(c)		24 104	63 964	394 883	844 325	1 152 134	2 479 410
	Food supplies		1 717	7 437	24 877	35 842	52 738	122 611
	Repair and maintenance		1 565	6 786	21 103	29 192	42 489	101 135
	Fuel and power		2 156	5 350	21 190	32 954	36 599	98 249
	Patient transport		98	269	1 328	4 370	2 667	8 732
	Depreciation and amortisation		5 339	12 040	62 088	99 623	142 398	321 488
	Interest		1 324	4 952	12 171	19 013	12 283	49 743
	Non-labour contract expenses		5 922	17 369	60 339	108 508	118 149	310 287
	Other (d)		17 373	35 752	118 813	245 052	267 700	684 690
	Total (e)		126 569	385 041	1 679 960	2 924 329	3 833 003	8 948 902
Wages and salaries, including on-costs, as a proportion of total expenditure (%)			50.9	55.7	54.6	48.4	50.1	50.6
Average expenditure ($)(f)
	Per patient separation		2 161	1 993	2 312	3 208	4 114	3 171
	Per patient day		934	677	824	1 207	1 369	1 123
Gross Capital expenditure ($'000)(g)
	Land and buildings		6 440	17 408	75 463	196 712	177 455	473 478
	Major medical equipment		18 591	5 609	24 537	61 675	56 059	166 471
	Information technology		3 106	1 016	3 976	5 750	17 948	31 796
	Other capital expenditure		3 285	6 458	24 621	45 968	35 598	115 930
	Total (e)		31 422	30 491	128 597	310 105	287 060	787 675
Net Capital expenditure ($'000)(g)
	Land and buildings		6 440	17 228	59 183	196 337	176 579	455 767
	Major medical equipment		18 591	5 261	20 476	60 314	55 213	159 855
	Information technology		3 106	751	3 976	5 732	17 922	31 487
	Other capital expenditure		3 275	6 319	20 444	44 938	34 999	109 975
	Total (e)		31 412	29 559	104 079	307 321	284 713	757 084
np not available for publication but included in totals where applicable, unless otherwise indicated (a) Based on number of available beds (average for the year). (b) Refers to expenditure on goods and services, which does not result in the creation or acquisition of fixed assets (new or second-hand). See Glossary for further information. (c) Including surgically implanted prostheses and homograft items. (d) Including contract services. (e) Figures have been rounded and discrepancies may occur between totals and the sums of the component items. (f) Average expenditure figures can vary considerably between hospitals depending on the type of services they provide. (g) Capital expenditure refers to expenditure in a period on the acquisition or enhancement of an asset (excluding financial assets). See Glossary for further information. Note that 2010-11 is the first year the ABS has had gross and net capital expenditure available for publication.

Previous Page

Next Page