HOSPITAL CHARACTERISTICS
Income and Expenditure
Income from patient activity continued to grow, with income totalling $8,982m in 2008-09, an increase from $7,539m in 2006-07. Total income from private Acute and psychiatric hospitals was $8,353m which accounted for 93% of all private hospital income. Total recurrent expenditure for all private hospitals increased by 17% to $8,137m in 2008-09 from $6,967m in 2006-07. For Acute and psychiatric hospitals, wages and salaries as a proportion of recurrent expenses remained steady at 51% in 2008-09; for Free-standing day hospitals the proportion remained consistent with 2006-07 at 40%.
The private hospital sector invested $637m in building and other capital assets in 2008-09, with Acute and psychiatric hospitals increasing investment from $440m in 2006-07 to $589m in 2008-09. Free-standing day hospitals increased investment from $35m in 2006-07 to $48m in 2008-09.
Net Operating Margin
Net operating margin is derived by subtracting recurrent expenditure from income and expressing the result as a proportion of income. The net operating margin for Acute and psychiatric hospitals during 2008-09 was 8.6%, an increase from 7.1% in 2006-07. The net operating margin for Free-standing day hospital facilities was higher at 20%. This was an increase from the previous cycle's net operating margin of 16%.
All Private Hospitals, Net Operating Margin
- 2003-04 to 2008-09 (a)
Accreditation
Hospital accreditation has been identified as an indicator of capability within the National Health Performance Framework (for further information refer to Australian Hospitals 2005-06, produced by Australian Institute of Health and Welfare (AIHW)). As at 30 June 2009, the main organisations used by hospitals to obtain accreditation were Australian Council on Healthcare Standards (ACHS) (used by 333 hospitals) and Benchmark Certification (used by 90 hospitals).
Quality Declaration 
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