EXPENDITURE

Recurrent expenditure for Acute and psychiatric hospitals during 2013-14 amounted to $10,536 million, up 6.9% from 2012-13.

Wages and salaries (including on-costs such as employer contributions to superannuation and payroll tax) represented 49.2% of recurrent expenditure in both 2012-13 and 2013-14. Victoria recorded the highest proportion of total recurrent expenditure that was spent on wages and salaries, at 51.6%, while New South Wales had the lowest proportion, at 46.0%.

The next largest component of recurrent expenditure in 2013-14 was Drug, medical, pharmaceutical and surgical supplies, which accounted for 26.9% of the total.

The average expenditure per patient day was $1,193 in 2013-14 compared with $1,188 in 2012-13.

Table 2.15 PRIVATE ACUTE AND PSYCHIATRIC HOSPITALS, Expenditure —State and territories - 2013-14
		NSW	Vic.	Qld	SA	WA	Tas., NT & ACT(a)	Aus.
Expenditure ($'000)(b)
	Wages and salaries, including on-costs	1,330,773	1,388,633	1,212,078	np	725,048	np	5,182,064
	Contract/consultancy payments for medical/health services	116,630	106,699	67,644	np	78,633	np	405,665
	Drug, medical, pharmaceuticals and surgical supplies(c)	855,197	643,747	656,518	np	356,928	np	2,837,875
	Food supplies	38,651	28,480	37,537	6,445	16,215	2,329	129,657
	Repair and maintenance	30,821	24,284	42,008	np	19,603	np	125,897
	Fuel and power	37,021	29,236	31,868	np	19,287	np	131,934
	Patient transport	1,116	7,826	259	517	np	np	12,053
	Depreciation and amortisation	101,672	103,473	107,755	18,842	53,485	np	397,081
	Interest	13,924	4,584	9,478	np	np	np	37,781
	Non-labour contract expenses	115,911	131,527	81,395	np	38,958	np	409,197
	Other (d)	249,450	221,012	188,551	59,462	123,803	24,315	866,593
	Total (e)	2,891,166	2,689,501	2,435,091	np	1,436,565	np	10,535,797
Wages and salaries, including on-costs, as a proportion of total expenditure (%)		46.0	51.6	49.8	np	50.5	np	49.2
Average expenditure ($)(f)
	Per patient separation	3,193	3,259	3,326	np	3,528	np	3,272
	Per patient day	1,188	1,130	1,132	np	1,507	np	1,193
Gross Capital expenditure ($'000)(g)
	Land and buildings	81,271	123,247	51,186	5,210	np	np	384,819
	Major medical equipment	60,887	29,587	50,368	10,479	np	np	185,708
	Information technology	7,802	2,492	3,108	1,415	np	np	17,915
	Other capital expenditure	22,228	17,214	39,913	4,511	np	np	129,874
	Total (e)	172,188	172,540	144,575	21,615	np	np	718,316
Net Capital expenditure ($'000)(g)
	Land and buildings	np	np	np	5,210	np	np	np
	Major medical equipment	np	np	np	10,479	np	np	183,474
	Information technology	np	np	2,513	1,415	np	np	np
	Other capital expenditure	np	15,566	38,661	4,511	np	np	125,588
	Total (e)	170,473	169,613	140,700	21,615	np	np	700,424
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 2013-14, For profit Acute and psychiatric hospitals had a lower average expenditure per patient day ($1,078) than Religious or charitable Not for profit hospitals ($1,383) and Other Not for profit hospitals ($1,132).

Other Not for profit hospitals spent a slightly higher proportion of their total expenditure on wages and salaries (51.6%) than For profit hospitals and Religious or charitable Not for profit hospitals (49.3% and 48.6% respectively).

Table 2.16 PRIVATE ACUTE AND PSYCHIATRIC HOSPITALS, Expenditure — For profit/not for profit sector (a) - 2013-14
		For profit	Not for profit		Total
			Religious or charitable	Other (b)
Expenditure ($'000)(c)
	Wages and salaries, including on-costs	2,647,985	2,161,848	372,231	5,182,064
	Contract/consultancy payments for medical/health services	269,383	111,179	25,103	405,665
	Drug, medical, pharmaceuticals and surgical supplies(d)	1,442,143	1,240,142	155,590	2,837,875
	Food supplies	62,540	59,579	7,538	129,657
	Repair and maintenance	67,541	54,782	3,574	125,897
	Fuel and power	70,340	53,316	8,278	131,934
	Patient transport	np	2,628	np	12,053
	Depreciation and amortisation	186,516	187,844	22,721	397,081
	Interest	10,551	20,706	6,524	37,781
	Non-labour contract expenses	173,841	193,494	41,862	409,197
	Other (e)	np	360,633	np	866,593
	Total (f)	5,367,850	4,446,151	721,796	10,535,797
Wages and salaries, including on-costs, as a proportion of total expenditure (%)		49.3	48.6	51.6	49.2
Average expenditure ($)(g)
	Per patient separation	2,933	3,708	3,780	3,272
	Per patient day	1,078	1,383	1,132	1,193
Gross Capital expenditure ($'000)(h)
	Land and buildings	np	187,708	np	384,819
	Major medical equipment	105,381	76,008	4,319	185,708
	Information technology	6,459	10,636	820	17,915
	Other capital expenditure	93,376	32,914	3,584	129,874
	Total (f)	np	307,266	np	718,316
Net Capital expenditure ($'000)(h)
	Land and buildings	np	np	np	np
	Major medical equipment	np	73,970	np	183,474
	Information technology	np	10,390	np	np
	Other capital expenditure	92,545	np	np	125,588
	Total (f)	np	295,736	np	700,424
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 2013-14, the highest recurrent expenditure per patient day (unadjusted for price changes), was recorded in hospitals with over 200 beds ($1,469). The lowest recurrent expenditure per patient day, was recorded for hospitals with 26-50 beds ($702).

The proportion of total expenditure that is spent on wages and salaries varied from 56.6% of expenditure for hospitals with 26-50 beds to 47.6% for hospitals with 101-200 beds.

Table 2.17 PRIVATE ACUTE AND PSYCHIATRIC HOSPITALS, Expenditure —Hospital size (a) - 2013-14
		Number of beds
		0-25	26-50	51-100	101-200	Over 200	Total (e)
Expenditure ($'000)(b)
	Wages and salaries, including on-costs	77,370	248,928	879,301	1,757,978	2,218,487	5,182,064
	Contract/consultancy payments for medical/health services	6,881	13,768	58,682	154,910	171,424	405,665
	Drug, medical, pharmaceuticals and surgical supplies(c)	37,635	70,702	366,737	1,016,832	1,345,969	2,837,875
	Food supplies	1,382	7,028	23,340	38,971	58,936	129,657
	Repair and maintenance	1,172	6,293	21,261	43,936	53,235	125,897
	Fuel and power	2,828	5,972	25,300	45,369	52,465	131,934
	Patient transport	208	222	893	6,296	4,434	12,053
	Depreciation and amortisation	4,007	15,757	63,939	128,611	184,767	397,081
	Interest	1,150	2,246	10,247	15,304	8,834	37,781
	Non-labour contract expenses	9,136	21,005	60,909	142,843	175,304	409,197
	Other (d)	18,239	48,167	125,504	341,845	332,838	866,593
	Total (e)	160,008	440,088	1,636,113	3,692,895	4,606,693	10,535,797
Wages and salaries, including on-costs, as a proportion of total expenditure (%)		48.4	56.6	53.7	47.6	48.2	49.2
Average recurrent expenditure ($)(f)
	Per patient separation	2,362	2,106	2,319	3,234	4,204	3,272
	Per patient day	1,212	702	871	1,207	1,469	1,193
Gross Capital expenditure ($'000)(g)
	Land and buildings	np	11,987	np	126,976	182,439	384,819
	Major medical equipment	np	5,197	np	77,143	64,819	185,708
	Information technology	364	1,472	2,546	3,864	9,669	17,915
	Other capital expenditure	2,427	6,365	13,894	75,387	31,801	129,874
	Total (e)	22,091	25,021	99,106	283,370	288,728	718,316
Net Capital expenditure ($'000)(g)
	Land and buildings	np	11,987	np	np	np	np
	Major medical equipment	np	5,141	np	np	np	np
	Information technology	364	np	2,253	3,561	np	15,492
	Other capital expenditure	np	np	13,319	74,203	29,553	125,588
	Total (e)	np	np	98,086	280,859	275,588	700,424
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 2009-10 (total real expenditure of $8,925 million) to 2013-14 (total real expenditure of $10,249 million) was 2.8% (see graph in Income section).

When average expenditure per patient day is adjusted to remove the effects of price changes over the period, real expenditure decreased from $1,177 in 2009-10 to $1,160 per patient day in 2013-14.

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