How much of Australia’s health expenditure is allocated to general practice and primary healthcare?

Abstract

Background and objective Understanding resource allocation is important to ensure that limited health resources are spent where they bring the greatest benefit. The aim of this study was to explore how much of Australia’s national health expenditure is allocated specifically to general practice services, and more broadly to primary healthcare (PHC) services. Methods This study used multiple Australian institutional reports - produced by the Australian Institute of Health and Welfare, Productivity Commission and Services Australia - to classify, compare and quantify general practice and PHC expenditure. Results National statistics report that approximately 34% of Australian health expenditure is spent on PHC. However, less than 20% of PHC expenditure (approximately 6.5% of total health expenditure) is allocated to delivering general practice services. Spending on general practitioners and general practice services varies between 4.2% and 6.8% of total health expenditure (between $7.8 billion and $12.4 billion) depending on the classification used. Discussion Significant differences exist in how different institutions classify general practice and PHC spending. Clearer, agreed and more precise methods of classification and reporting of health expenditure are needed.