Public Hospital Costs in Two Australian States

Abstract

This study examines the long-run and shortrun behaviour of public hospital average costs in two Australian States: Victoria and Queensland. Using adjusted weighted inlierequivalent separations as a measure of hospital output, and floor area as a measure of capacity, the study finds a hump-or ' ∩ '-shaped long-run average cost curve at the 5 per cent significance level in both data sets. The study also finds a saucer-or ' ∪ '-shaped relationship between capacity utilisation and short-run average cost at the 5 per cent level.

Health care financing and public responses: use of private insurance in Western Australia during 1980–2001

“…Previous peer-reviewed evaluations of policy changes aimed at supporting PHI in Australia have centred on the prevalence of PHI cover, [2][3][4] or economic modelling of hospital costs. 18 Several analyses have indicated that the introduction of Lifetime Health Cover on 1 July 2000 had the largest immediate effect, whereas the 30% rebate (January 1999) slowed the decline in PHI coverage. [6][7][8]11,19 Our results are consistent in showing an increase in private insured hospital episodes commencing from 2000.…”