INCOME

Total income for private Acute and psychiatric hospitals in Australia increased by 8.1% between 2012-13 and 2013-14 to $11,740 million. New South Wales recorded the highest income of the states and territories at $3,116 million, increasing by 7.6% from 2012-13. Victoria recorded an increase of 9.4% to $2,862 million in 2013-14.

The overall proportion of total income contributed by patient income remains almost unchanged at 95.6%.

Table 2.12 PRIVATE ACUTE AND PSYCHIATRIC HOSPITALS, Income—States and Territories - 2013-14
			NSW	Vic.	Qld	SA	WA	Tas., NT & ACT(a)	Aus.
Income ($'000)
	Patient income ('000) (b)
		Income from Federal, state and local government	288,049	306,187	345,841	70,721	np	np	1,526,235
		Income from private health insurance companies	2,575,169	2,252,807	2,031,921	606,076	np	np	8,890,721
		Income from third parties (c)	np	72,559	np	np	np	np	244,904
		Income direct from patient	78,428	198,566	82,326	11,558	np	np	400,039
		Total (d)	3,115,822	2,861,908	2,537,817	704,403	np	np	11,224,262
	Recoveries		35,856	39,052	37,852	8,897	np	np	147,081
	Other (e)		78,890	113,773	90,776	17,401	np	np	368,883
	Total (f)		3,230,568	3,014,733	2,666,445	730,701	np	np	11,740,226
Patient income as a proportion of total income (%)			96.4	94.9	95.2	96.4	np	np	95.6
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) Includes income received by, and due to, the hospital in respect of patient liability for accommodation and other fees. See Glossary for further information. (c) Includes, for example, payments Workcover payments, Motor Vehicle third party claims, workers compensation. (d) Includes other patient income. (e) Includes investment income, income from charities, bequests, visitors' meals, and accommodation and kiosk sales. (f) Figures have been rounded and discrepancies may occur between totals and the sums of the component items.

In 2013-14, total income increased in the 'For profit' and 'Religious or charity Not for profit' hospitals with 'For profit' hospitals increasing by 9.7% since 2012-13 and 'Religious or charity Not for profit' hospitals increasing by 8.7%. Other 'Not for profit' hospitals recorded a decrease of 4.9% in 2013-14.

The 'For profit' sector accounted for over half of all patient income (53.8%) and total income (52.9%) in 2013-14. The proportion of total income contributed by patient income was 93.7% for the 'Not for profit' sector and 97.3% for 'For profit' hospitals.

Table 2.13 PRIVATE ACUTE AND PSYCHIATRIC HOSPITALS, Income—For profit/not for profit sector (a) - 2013-14
			For profit	Not for profit		Total
				Religious or charitable	Other (b)
Income ($'000)
	Patient income ('000) (c)
		Income from Federal, state and local government	1,057,213	418,374	50,648	1,526,235
		Income from private health insurance companies	4,648,637	3,610,050	632,034	8,890,721
		Income from third parties (d)	167,248	60,134	17,522	244,904
		Income direct from patient	np	np	np	400,039
		Total(e)	6,042,106	4,424,990	757,166	11,224,262
	Recoveries		65,455	69,337	12,289	147,081
	Other (e)		101,474	229,174	38,235	368,883
	Total (f)		6,209,035	4,723,501	807,690	11,740,226
Patient income as a proportion of total income (%)			97.3	93.7	93.7	95.6
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) Includes income received by, and due to, the hospital in respect of patient liability for accommodation and other fees. See Glossary for further information. (d Includes, for example, payments Workcover payments, Motor Vehicle third party claims, workers compensation. (e) Includes other patient income. (f) Includes investment income, income from charities, bequests, visitors' meals, and accommodation and kiosk sales. (g) Figures have been rounded and discrepancies may occur between totals and the sums of the component items.

Large hospitals, with over 200 beds, had the highest income for 2013-14 at $5,132 million (43.7% of all hospitals' income), an average of $190 million per hospital. Hospitals with 101-200 beds earned the second highest income at $4,087 million (34.8% of all hospitals' income), an average of $60 million per hospital.

Patient income as a proportion of total income was relatively similar across private Acute and psychiatric hospitals for 2013-14 ranging from 93.9% for hospitals reporting 25 or fewer beds to 96.8% for hospitals offering 26-100 beds.

Table 2.14 PRIVATE ACUTE & PSYCHIATRIC HOSPITALS, Income—Hospital size(a) —2013-14
			Number of beds
			0-25	26-50	51-100	101-200	Over 200	Total (b)
Income ($'000)
	Patient income ('000) (b)
		Income from Federal, state and local government	17,326	52,568	233,436	534,321	688,584	1,526,235
		Income from private health insurance companies	112,035	399,338	1,428,611	3,059,802	3,890,935	8,890,721
		Income from third parties (c)	np	10,240	51,755	105,871	np	244,904
		Income direct from patient	11,108	25,182	53,905	202,402	107,442	400,039
		Total (d)	145,241	488,065	1,802,571	3,939,314	4,849,071	11,224,262
	Recoveries		2,989	8,645	26,323	52,998	56,126	147,081
	Other (e)		6,366	7,580	33,404	94,749	226,784	368,883
	Total (f)		154,596	504,290	1,862,298	4,087,061	5,131,981	11,740,226
Patient income as a proportion of total income (%)			93.9	96.8	96.8	96.4	94.5	95.6
(a) Based on number of available beds (average for the year). (b) Figures have been rounded and discrepancies may occur between totals and the sums of the component items (c) Includes income received by, and due to, the hospital in respect of patient liability for accommodation and other fees. See Glossary for further information. (d Includes, for example, payments Workcover payments, Motor Vehicle third party claims, workers compensation. (e) Includes investment income, income from charities, bequests, visitors' meals, and accommodation and kiosk sales.

When income is adjusted to remove the effects of price changes over the period, the average annual increase over the five years from 2009-10 (total real income of $9,662 million) to 2013-14 (total real income of $11,420 million) was 3.4%. For further information on the use of chain volume measures to adjust income and expenditure, see Explanatory Note 26.