Healthcare costs are rising
by Peter Breadon
After pandemic fluctuations, three long-term healthcare trends resumed: government spending kept going up, so did the share of funding going to hospitals, and so did patient out-of-pocket fees.
Australia spent just over $10,000 per person on health in 2023–24. That’s 17 per cent higher than a decade ago, on top of inflation, and a quarter higher than the average among wealthy nations.
The biggest area of health spending remains hospitals, which take up a growing share, rising from 39 per cent to 42 per cent over the past decade.
Average out-of-pocket fees totalled $1,634, nearly $200 more than a decade earlier (in today’s dollars). As fees go up, more people are skipping care, with 8 per cent of Australians saying they delayed or avoided a GP visit in 2024–25 because of the cost.
And for some care, patients shoulder a much bigger share of the bill. They pay the most for dental care, covering 61 per cent of total costs, so it’s no surprise 16 per cent of people skipped dental care due to cost.