The Australian Institute for Health and Welfare (AIHW) has published a report that shows over $120 billion was spent on health goods and services in 2009-10.


The Health Expenditure Australia 2009-10 report shows the total expenditure on health was $121.4 billion in the 2009-10 financial year, showing an increase of $7.9 billion since 2008-09.


This was 9.4% of Australia’s gross domestic product (GDP) and averaged out at $5,479 per Australian.


‘Health expenditure as a proportion of GDP has continued to grow, increasing from 7.9% in 1999-00 to 9.4% of GDP in 2009-10,’ said AIHW Director and CEO, David Kalisch.


Between 1999-00 and 2009–10, Australia’s expenditure on health in real terms (after adjusting for inflation) grew at an average of 5.3% per year, compared with average real growth in GDP of 3.1% per year.


The largest component of the increase in expenditure in 2009-10 was a $1.5 billion rise in spending on public hospitals, followed by spending on medications, which grew by  $1.0 billion.


Health research recorded a 10.8 per cent increase in spending, with dental services up 7.5 per cent.


Almost 70% of total health expenditure during 2009-10 was funded by governments, with the Australian Government contributing $52.9 billion (43.6%), and state, territory and local governments contributing $31.9 billion (26.3%). The remaining $36.6 billion (30.1%) was funded by individuals, private health insurers, and other non-government sources.


‘The Australian Government’s share of public hospital funding was 39.7% in 2009–10, less than its 44.6% share in 1999–00 and a slight increase from 39.6% in 2008–09,’ Mr Kalisch said.


‘State and territory governments’ share of public hospital expenditure was 50.6% in 2009–10, down from 51.2% in 2008–09.’


The full report can be found here