EXPENDITURE


Recurrent expenditure for private Acute and psychiatric hospitals during 2012-13 amounted to $9.9 billion, up 5.6% from 2011-12.

Wages and salaries (including on-costs such as employer contributions to superannuation and payroll tax) represented 49.2% of recurrent expenditure in 2012-13, up from 48.6% in 2011-12. Victoria recorded the highest proportion of total recurrent expenditure spent on wages and salaries, at 50.9%, while New South Wales had the lowest proportion, at 46.4%.

The next largest component of recurrent expenditure was Drug, medical, pharmaceutical and surgical supplies, which accounted for 27.1% of the total.

The average expenditure per patient day was $1,188 in 2012-13 compared with $1,158 in 2011-12.

Table 2.15 PRIVATE ACUTE AND PSYCHIATRIC HOSPITALS, Expenditure —State and territories - 2012-13
		NSW	Vic.	Qld	SA	WA	Tas., NT & ACT(a)	Aus.
Expenditure ($'000)(b)
	Wages and salaries, including on-costs	1,265,495	1,267,862	1,137,115	np	678,679	np	4,847,810
	Contract/consultancy payments for medical/health services	117,489	88,933	63,335	20,946	np	np	379,615
	Drug, medical, pharmaceuticals and surgical supplies(c)	789,948	620,462	628,996	np	335,984	np	2,668,278
	Food supplies	34,577	34,598	36,762	np	18,389	np	134,585
	Repair and maintenance	32,495	25,336	37,221	np	14,403	np	120,520
	Fuel and power	32,304	26,971	27,117	np	16,512	np	116,224
	Patient transport	1,229	6,071	240	770	np	np	10,679
	Depreciation and amortisation	94,935	91,706	95,732	np	44,644	np	354,686
	Interest	16,609	5,849	15,270	np	3,144	np	50,110
	Non-labour contract expenses	95,372	121,250	75,431	np	34,918	np	364,267
	Other(d)	247,290	200,398	156,171	66,840	117,015	25,356	813,070
	Total(e)	2,727,743	2,489,436	2,273,390	np	1,344,941	np	9,859,844
Wages and salaries, including on-costs, as a proportion of total expenditure (%)		46.4	50.9	50.0	np	50.5	np	49.2
Average expenditure ($)(f)
	Per patient separation	3,137	3,139	3,259	np	3,417	np	3,189
	Per patient day	1,203	1,116	1,151	np	1,409	np	1,188
Gross Capital expenditure ($'000)(g)
	Land and buildings	28,715	67,307	112,933	np	np	np	307,828
	Major medical equipment	55,762	39,635	35,561	8,359	np	np	166,364
	Information technology	8,023	5,838	3,959	np	np	525	21,857
	Other capital expenditure	27,092	26,157	28,671	4,817	np	np	167,509
	Total(e)	119,592	138,937	181,124	24,427	np	np	663,558
Net Capital expenditure ($'000)(g)
	Land and buildings	np	np	np	np	np	np	np
	Major medical equipment	54,832	np	33,301	np	np	np	np
	Information technology	8,023	np	3,898	np	np	525	21,310
	Other capital expenditure	np	22,409	24,588	4,551	75,324	np	153,311
	Total(e)	114,189	131,600	np	24,157	184,399	np	644,752
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.

In 2012-13, For profit Acute and psychiatric hospitals had a lower average expenditure per patient day ($1,077) than Religious or charitable Not for profit hospitals ($1,375) and Other Not for profit hospitals ($1,107).

Other Not for profit hospitals spent a slightly higher proportion of their total expenditure on wages and salaries (50.5%) than For profit hospitals and Religious or charitable Not for profit hospitals (49.7% and 48.3% respectively).

Table 2.16 PRIVATE ACUTE AND PSYCHIATRIC HOSPITALS, Expenditure — For profit/Not for profit sector(a) - 2012-13
		For profit		Not for profit	Total
			Religious or charitable	Other(b)
Expenditure ($'000)(c)
	Wages and salaries, including on-costs	2,443,273	2,006,350	398,187	4,847,810
	Contract/consultancy payments for medical/health services	259,935	95,104	24,576	379,615
	Drug, medical, pharmaceuticals and surgical supplies(d)	1,308,558	1,179,752	179,968	2,668,278
	Food supplies	62,498	58,767	13,320	134,585
	Repair and maintenance	60,018	51,637	8,865	120,520
	Fuel and power	58,774	48,316	9,134	116,224
	Patient transport	np	2,133	np	10,679
	Depreciation and amortisation	162,983	166,408	25,295	354,686
	Interest	13,972	26,943	9,195	50,110
	Non-labour contract expenses	152,542	165,629	46,096	364,267
	Other(e)	np	355,664	np	813,070
	Total(f)	4,914,609	4,156,703	788,532	9,859,844
Wages and salaries, including on-costs, as a proportion of total expenditure (%)		49.7	48.3	50.5	49.2
Average expenditure ($)(g)
	Per patient separation	2,838	3,708	3,303	3,189
	Per patient day	1,077	1,375	1,107	1,188
Gross Capital expenditure ($'000)(h)
	Land and buildings	122,266	174,638	10,924	307,828
	Major medical equipment	93,857	66,334	6,173	166,364
	Information technology	7,172	12,880	1,805	21,857
	Other capital expenditure	np	41,046	np	167,509
	Total(f)	341,869	294,898	26,791	663,558
Net Capital expenditure ($'000)(h)
	Land and buildings	np	np	np	np
	Major medical equipment	91,095	64,193	np	np
	Information technology	6,917	np	np	21,310
	Other capital expenditure	np	31,340	np	153,311
	Total(f)	np	284,064	np	644,752
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.

In 2012-13, the highest recurrent expenditure per patient day (unadjusted for price changes), was recorded in hospitals with over 200 beds ($1,443). The lowest recurrent expenditure per patient day, was recorded for hospitals with 26-50 beds ($688).

The proportion of total expenditure spent on wages and salaries varied from 47.4% of expenditure for both hospitals with 0-25 beds and those with over 200 beds, to 56.9% of expenditure for hospitals with 26-50 beds.

Table 2.17 PRIVATE ACUTE AND PSYCHIATRIC HOSPITALS, Expenditure —Hospital size(a) - 2012-13
		Number of beds
		0-25	26-50	51-100	101-200	Over 200	Total(e)
Expenditure ($'000)(b)
	Wages and salaries, including on-costs	67,211	253,450	906,775	1,554,442	2,065,932	4,847,810
	Contract/consultancy payments for medical/health services	5,324	13,855	63,945	123,775	172,716	379,615
	Drug, medical, pharmaceuticals and surgical supplies(c)	33,494	73,704	373,363	889,041	1,298,676	2,668,278
	Food supplies	1,702	7,763	24,496	39,587	61,037	134,585
	Repair and maintenance	1,500	6,728	21,862	39,686	50,744	120,520
	Fuel and power	2,336	6,919	23,423	37,813	45,733	116,224
	Patient transport	130	368	1,147	5,279	3,755	10,679
	Depreciation and amortisation	4,157	14,809	63,916	104,747	167,057	354,686
	Interest	1,410	4,185	11,253	23,131	10,131	50,110
	Non-labour contract expenses	6,989	19,740	58,731	117,611	161,196	364,267
	Other(d)	17,475	44,226	129,709	302,244	319,416	813,070
	Total(e)	141,728	445,747	1,678,620	3,237,356	4,356,393	9,859,844
Wages and salaries, including on-costs, as a proportion of total expenditure (%)		47.4	56.9	54.0	48.0	47.4	49.2
Average recurrent expenditure ($)(f)
	Per patient separation	2,015	1,898	2,364	3,192	4,101	3,189
	Per patient day	1,082	688	903	1,225	1,443	1,188
Gross Capital expenditure ($'000)(g)
	Land and buildings	1,782	11,727	25,762	94,139	174,418	307,828
	Major medical equipment	824	4,375	29,142	63,126	68,897	166,364
	Information technology	398	1,222	2,892	5,448	11,897	21,857
	Other capital expenditure	902	3,885	18,639	33,235	110,848	167,509
	Total(e)	3,906	21,209	76,435	195,948	366,060	663,558
Net Capital expenditure ($'000)(g)
	Land and buildings	np	11,727	np	np	np	np
	Major medical equipment	np	np	28,857	61,156	np	np
	Information technology	np	np	np	np	np	21,310
	Other capital expenditure	304	2,809	np	27,509	np	153,311
	Total(e)	np	19,922	np	189,114	359,357	644,752
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.

When recurrent expenditure is adjusted to remove the effects of price changes over the period, the average annual increase over the five years from 2008-09 ($8.2 billion total real expenditure) to 2011-12 ($9.6 billion total real expenditure) was 4.2% (see graph in Income section).

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 2008-09 ($1,114 total real expenditure per patient day) to 2012-13 ($1,153 total real expenditure per patient day) was 1.3%.

For further information on the use of chain volume measures to adjust income and expenditure, see Explanatory Note 26.


GROSS CAPITAL EXPENDITURE


Gross capital expenditure for private Acute and psychiatric hospitals during 2012-13 was $663.6 million, an increase of 44.0% from 2011-12. Land and buildings accounted for the largest proportion (46.4%) of gross capital expenditure in 2012-13.

Table 2.18 PRIVATE ACUTE AND PSYCHIATRIC HOSPITALS Gross Capital Expenditure —State and territories—Selected years
		NSW	Vic.	Qld	SA	WA	Tas. NT & ACT(a)	Aus.
		2010-11(b)
Gross Capital expenditure ($'000)(d)
	Land and buildings	153,294	129,777	98,545	np	7,465	np	398,479
	Major medical equipment	38,626	37,847	30,979	np	15,620	np	135,712
	Information technology	7,863	12,617	4,571	np	2,437	np	28,238
	Other capital expenditure(e)	43,338	23,666	23,889	np	6,945	np	108,846
	Total(f)	243,121	203,907	157,984	np	32,467	np	671,275
		2011-12(c)
Gross Capital expenditure ($'000)(d)
	Land and buildings	np	np	np	np	35,001	np	np
	Major medical equipment	38,770	29,450	26,833	9,972	np	np	124,984
	Information technology	5,970	7,411	3,665	1,083	np	np	19,966
	Other capital expenditure(e)	np	np	np	np	np	np	np
	Total(f)	103,026	112,784	134,374	np	72,025	np	460,859
		2012-13
Gross Capital expenditure ($'000)(d)
	Land and buildings	28,715	67,307	112,933	np	np	np	307,828
	Major medical equipment	55,762	39,635	35,561	8,359	np	np	166,364
	Information technology	8,023	5,838	3,959	np	np	525	21,857
	Other capital expenditure(e)	27,092	26,157	28,671	4,817	np	np	167,509
	Total(f)	119,592	138,937	181,124	24,427	np	np	663,558
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) Note that capital expenditure for 2010-11 has been revised. See Explanatory Note 40 for further information. (c) Gross and net capital expenditure was not published in 2011-12. Selected data are available in this publication. See Explanatory Note 40 for further information. (d) Capital expenditure refers to expenditure in a period on the acquisition or enhancement of an asset (excluding financial assets). See Glossary for further information. (e) Other capital expenditure includes construction, transport, other equipment, intangible assets and any other capital expenditure. (f) Figures have been rounded and discrepancies may occur between totals and the sums of the component items.

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