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The total number of procedures decreased by 3.0% from 6.5 million in 2005-06 to 6.3 million in 2006-07. Of these procedures, 5.0 million were performed in Acute and psychiatric hospitals and the remainder in free-standing day hospitals.
The greatest proportion of procedures were in the category Non-invasive, cognitive and other interventions nec (45%) followed by Procedures on the digestive system (11%). Examples of Non-invasive, cognitive and other interventions are services such as dietary education and exercise therapy (often used for development of treatment plans, programs, case reviews or follow up to previous procedures performed). For further details of the classification refer to Volume 3 International Statistical Classification of Diseases and Related Health Problems, 10th Revision-Australian Modification (ICD-10-AM).
Similar patterns were reflected in both the Acute and psychiatric and Free-standing day hospitals. For Acute and psychiatric hospitals, Non-invasive, cognitive and other interventions nec accounted for 48% of all procedures performed in 2006-07, up from 47% in the previous year. The next most common procedures in Acute and psychiatric hospitals were on the Digestive system (9.8%), the Musculoskeletal system (6.0%) and Dental services (4.3%). For Free-standing day hospitals, Non-invasive, cognitive and other interventions nec accounted for the highest proportion of all procedures performed on patients in 2006-07 at 33%. This is followed by Procedures on the digestive system (18%), Dental services (8.3%) and Procedures on the eye and adnexa (7.6%). The most common principle diagnosis for patient separations from all private hospitals was Factors influencing health status and contact with health services (21%). This relates to occasions when circumstances other than a disease, injury or external cause are recorded as 'diagnoses' or 'problems' (see Glossary). The second most common principle diagnosis for all patient separations was Diseases of the digestive system (15%). Similarly in 2005-06, Factors influencing health status and contact with health services represented 21% of patient separations and Diseases of the digestive system represented 16% of all patient separations.
Mode of Patient Separation
The majority of all patients (92%) were discharged to their place of usual residence in 2006-07. Patient separations discharged to usual residence remained relatively stable for Private acute and psychiatric hospitals and decreased by 2.1% for Free-standing day hospitals since 2005-06.
INCOME & EXPENDITURE
Patient activity continued to grow, with income totalling $7,539.4m in 2006-07, up from $7,001.1m in 2005-06. Total income from private acute and psychiatric hospitals was $6,810.5m which accounted for 94% of all private hospital income.
Total recurrent expenditure for all private hospitals increased by 7.2% to $6,966.7m in 2006-07 from $6,497.9m in 2005-06. For private Acute and psychiatric hospitals, the proportion of wages and salaries attributed to recurrent expenses remained almost steady at 52% in 2006-07, and for Free-standing day hospitals was consistent with 2005-06 at 40%.
The private hospital sector invested $474.9m in building and other capital assets in 2006-07, with private Acute and psychiatric hospitals increasing investment from $370.1m in 2005-06 to $439.7m in 2006-07. Free-standing day hospitals doubled investment from $17.2m in 2005-06 to $35.2m in 2006-07.
NET OPERATING MARGIN
Net operating margin is derived by subtracting recurrent expenditure from income and expressing the result as a proportion of income. The net operating margin for Acute and psychiatric hospitals during 2006-07 was 7.1%, up from 6.5% in 2005-06. The net operating margin for Free-standing day hospital facilities was higher at 16%. This was lower than the previous year's percentage of 18%.
Hospital accreditation has been identified as an indicator of capability within the National Health Performance Framework (for further information refer to Australian Hospital Statistics 2005-06, produced by the Australian Institute of Health and Welfare (AIHW)). As at the 30 June 2006, the main organisations used by hospitals to obtain accreditation were Australian Council on Healthcare Standards (ACHS) (used by 369 hospitals) and Benchmark Certification (used by 70 hospitals).
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