EXPENDITURE

Recurrent expenditure for Acute and psychiatric hospitals during 2011-12 amounted to $9,339 million, up 4.4% from 2010-11.

Wages and salaries (including on-costs such as employer contributions to superannuation and payroll tax) represented 48.6% of recurrent expenditure in 2011-12, down from 50.6% in 2010-11. Western Australia recorded the highest proportion of total recurrent expenditure that was spent on wages and salaries, at 51.9%, while New South Wales had the lowest proportion, at 45.8%.

The next largest component of recurrent expenditure was Drug, medical, pharmaceutical and surgical supplies, which accounted for 27.5% of the total.

The average expenditure per patient day was $1,158 in 2011-12 compared with $1,123 in 2010-11.

Table 2.15 PRIVATE ACUTE AND PSYCHIATRIC HOSPITALS, Expenditure —State and territories - 2011-12
			NSW	Vic.	Qld	SA	WA	Tas., NT & ACT(a)	Aus.
Expenditure ($'000)(b)
	Labour costs, including on-costs
		Wages and salaries, including on-costs	1 160 008	1 207 869	1 061 106	np	648 032	np	4 539 529
		Contract/consultancy payments for medical/health services	102 183	81 967	59 066	np	75 284	np	345 028
	Drug, medical, pharmaceuticals and surgical supplies(c)		762 482	650 386	587 870	np	285 239	np	2 570 375
	Food supplies		34 318	33 820	35 506	np	18 142	np	131 984
	Repair and maintenance		35 442	22 242	33 460	np	16 469	np	117 286
	Fuel and power		27 826	22 770	22 831	np	14 261	np	99 692
	Patient transport		918	6 330	204	np	1 645	np	10 115
	Depreciation and amortisation		86 112	80 370	88 665	np	40 477	np	321 947
	Interest		14 575	6 576	13 655	np	2 855	np	47 052
	Non-labour contract expenses		83 429	127 277	72 117	np	28 623	np	345 862
	Other (d)		205 235	191 725	137 268	np	106 952	np	718 799
	Total (e)		2 532 065	2 450 151	2 152 145	np	1 248 069	np	9 339 217
Wages and salaries, including on-costs, as a proportion of total expenditure (%)			45.8	49.3	49.3	np	51.9	np	48.6
Average expenditure ($)(f)
	Per patient separation		3 043	3 260	3 207	np	3 299	np	3 149
	Per patient day		1 148	1 139	1 115	np	1 346	np	1 158
Gross Capital expenditure ($'000)(g)
	Land and buildings		np	np	np	np	np	np	np
	Major medical equipment		np	np	np	np	np	np	np
	Information technology		np	np	np	np	np	np	np
	Other capital expenditure		np	np	np	np	np	np	np
	Total (e)		np	np	np	np	np	np	np
Net Capital expenditure ($'000)(g)
	Land and buildings		np	np	np	np	np	np	np
	Major medical equipment		np	np	np	np	np	np	np
	Information technology		np	np	np	np	np	np	np
	Other capital expenditure		np	np	np	np	np	np	np
	Total (e)		np	np	np	np	np	np	np
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 gross and net capital expenditure has not been published for 2011-12. See Explanatory Note 40 for further information.

For profit hospitals had a lower average expenditure per patient day ($1,042) than Religious or charitable Not for profit hospitals ($1,321) and Other Not for profit hospitals ($1,201) in 2011-12.

For profit hospitals and Religious or charitable Not for profit hospitals spent a slightly higher proportion of their total expenditure on wages and salaries (49.0% and 48.5% respectively) than the Other Not for profit hospitals (47.3%).

Table 2.16 PRIVATE ACUTE AND PSYCHIATRIC HOSPITALS, Expenditure — For profit/not for profit sector (a) - 2011-12
			For profit	Religious or charitable	Other (b)	Total
Expenditure ($'000)(c)
	Labour costs, including on-costs
		Wages and salaries, including on-costs	2 259 539	1 892 822	387 168	4 539 529
		Contract/consultancy payments for medical/health services	228 546	92 254	24 228	345 028
	Drug, medical, pharmaceuticals and surgical supplies(d)		1 245 879	1 084 835	239 661	2 570 375
	Food supplies		np	59 880	np	131 984
	Repair and maintenance		62 924	47 926	6 436	117 286
	Fuel and power		49 271	42 694	7 727	99 692
	Patient transport		np	1 402	np	10 115
	Depreciation and amortisation		137 885	162 409	21 653	321 947
	Interest		np	25 970	np	47 052
	Non-labour contract expenses		np	147 663	np	345 862
	Other (e)		371 758	291 475	55 566	718 799
	Total (f)		4 614 404	3 906 320	818 493	9 339 217
Wages and salaries, including on-costs, as a proportion of total expenditure (%)			49.0	48.5	47.3	48.6
Average expenditure ($)(g)
	Per patient separation		2 791	3 626	3 485	3 149
	Per patient day		1 042	1 321	1 201	1 158
Gross Capital expenditure ($'000)(h)			np	np	np	np
	Land and buildings		np	np	np	np
	Major medical equipment		np	np	np	np
	Information technology		np	np	np	np
	Other capital expenditure		np	np	np	np
	Total (f)
Net Capital expenditure ($'000)(h)
	Land and buildings		np	np	np	np
	Major medical equipment		np	np	np	np
	Information technology		np	np	np	np
	Other capital expenditure		np	np	np	np
	Total (f)		np	np	np	np
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 gross and net capital expenditure has not been published for 2011-12. See Explanatory Note 40 for further information.

The average cost per patient day increased 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 2011-12, recurrent expenditure per patient day (unadjusted for price changes) at Acute and psychiatric hospitals with over 200 beds was $1,389 compared with an average of $720 for hospitals with 26-50 beds.

The proportion of total expenditure that is spent on wages and salaries varied from 46.0% of expenditure for hospitals with 101- 200 beds, to 53.7% of expenditure for hospitals with 51-100 beds.

Table 2.17 PRIVATE ACUTE AND PSYCHIATRIC HOSPITALS, Expenditure —Hospital size (a) - 2011-12
			Number of beds
			0-25	26-50	51-100	101-200	Over 200	Total (e)
Expenditure ($'000)(b)
	Labour costs, including on-costs
		Wages and salaries, including on-costs	65 096	227 832	887 569	1 393 700	1 965 332	4 539 529
		Contract/consultancy payments for medical/health services	4 751	15 772	58 658	120 963	144 884	345 028
	Drug, medical, pharmaceuticals and surgical supplies(c)		28 181	70 415	382 098	875 809	1 213 872	2 570 375
	Food supplies		1 926	7 942	25 137	38 135	58 844	131 984
	Repair and maintenance		1 717	7 162	24 484	33 486	50 437	117 286
	Fuel and power		2 113	5 995	20 334	28 896	42 354	99 692
	Patient transport		126	438	1 251	5 205	3 095	10 115
	Depreciation and amortisation		3 900	14 485	62 628	97 794	143 140	321 947
	Interest		1 409	4 567	9 889	24 726	6 461	47 052
	Non-labour contract expenses		6 313	27 971	53 803	114 884	142 891	345 862
	Other (d)		17 273	43 645	114 755	263 456	279 670	718 799
	Total (e)		133 468	432 536	1 651 604	3 030 641	4 090 968	9 339 217
Wages and salaries, including on-costs, as a proportion of total expenditure (%)			48.8	52.7	53.7	46.0	48.0	48.6
Average expenditure ($)(f)
	Per patient separation		2 227	2 025	2 278	3 232	3 975	3 149
	Per patient day		1 011	720	865	1 223	1 389	1 158
Gross Capital expenditure ($'000)(g)
	Land and buildings		np	np	np	np	np	np
	Major medical equipment		np	np	np	np	np	np
	Information technology		np	np	np	np	np	np
	Other capital expenditure		np	np	np	np	np	np
	Total (e)		np	np	np	np	np	np
Net Capital expenditure ($'000)(g)
	Land and buildings		np	np	np	np	np	np
	Major medical equipment		np	np	np	np	np	np
	Information technology		np	np	np	np	np	np
	Other capital expenditure		np	np	np	np	np	np
	Total (e)		np	np	np	np	np	np
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 gross and net capital expenditure has not been published for 2011-12. See Explanatory Note 40 for further information.

When recurrent expenditure is adjusted to remove the effects of price changes over the period, the average annual increase over the five years from 2006-07 ($7,362 million) to 2011-12 ($9,120 million) was 4.4% (see graph in Income section). For further information on the use of chain volume measures to adjust income and expenditure, see Explanatory Note 26.

When average expenditure per patient day is adjusted to remove the effects of price changes over the period, the average annual increase over the five years from 2006-07 ($1,046) to 2010-11 ($1,131) was 1.6%.


Acute and Psychiatric Private Hospitals, Expenditure (a) per patient day: 2006-07 to 2011-12(b)

(a) Laspeyres input cost index was used to provide real expenditure. See Explanatory Note 26 for further information.
(b) Data for the 2007–08 reference year are not available. See Explanatory Note 4 for further information.

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