More than A$130 billion spent on health in Australia in 2010-11

According to a report released this week by the Australian Institute of Health and Welfare (AIHW) spending on health was estimated at about $130.3 billion ($136 billion) in 2010-11, up from $122.5 billion in 2009-10 (after adjusting for inflation). The largest component of the increase in Australian expenditure in 2010-11 was an A$2.2 billion rise in spending on public hospitals, followed by spending on medications, which grew by A$2.1 billion.

“While total health expenditure has risen, health expenditure as a proportion of Australia's gross domestic product (GDP) dropped slightly compared to the previous year,” said AIHW director and chief executive David Kalisch. In 2010-11, health expenditure as a percentage of GDP was 9.3%, compared to 9.4% in 2009-10, the report revealed.

“In recent years, the ratio of health expenditure to GDP has risen-however this was largely the result of a slowing in GDP growth following the global financial crisis, rather than extraordinary health expenditure growth. This situation now appears to have stabilised somewhat,” Mr Kalisch said.