In terms of efficiency and effectiveness, health care in Australia is widely considered to be a world-class. Like any other country, Australia too is encountering enormous pressure on health funding due to Australia’s aging population, the increased cost of healthcare itself, increasing expectations of the patients and the technological changes

1. Funding of Health Care in Australia: An Overview
In terms of efficiency and effectiveness, health care in Australia is widely considered to be a world-
class. Like any other country, Australia too is encountering enormous pressure on health funding
due to Australia’s aging population, the increased cost of healthcare itself, increasing expectations
of the patients and the technological changes. Government provides financial assistance to the
public as well as the private health care sectors in Australia.
According to the Australian Government, Department of health and ageing, an estimated $103
billion was spent by the government on health care in Australia. Out of which, $ 30.8 billion was
spent on the services provided by the public hospitals in Australia and over seven per cent was
spent on the private hospitals in Australia. The Health-care system consists of health service
providers from both the public and the private sectors and series of funding and regulatory
mechanisms which includes:
1.The Australian Government
The Australian government provides funding to the universal medical services and pharmaceuticals
and, as well, provides financial funding to residential aged care facilities; home and community care
for the aged along with the public hospitals in Australia. Apart from this, it also provides support
for training health professionals and financial aid to tertiary students. It also majorly provides
funding to various health care researches. It fulfills the primary role of constructing broad national
policies and regulation as well as funding.
2.State, Territory and Local governments
Their responsibilities include delivery and management of public health services and maintenance
of direct relationships with most health care providers which consist of regulating health
professionals and private hospitals in Australia.
3.Private practitioners
It includes consultant physicians, specialists and general practitioners.
4.Profit and non-profit organizations including voluntary agencies.
Government's funding to the system of health care in Australia includes three major national
subsidy schemes such as Medicare, the pharmaceutical benefit schemes and rebate of 30% on
Private health insurance.
Health financing to the public sector
In 1984, government introduced a comprehensive system of health-care in Australia, known as
Medicare. It provides access to all eligible residents of Australia to low-cost or even free medical
and optometric care as well as care in public hospitals in Australia while leaving them free to
choose the option of private health services.
Public hospitals in Australia jointly receive funds from the Australian government as well as the
state and territory governments. However, their administration is in the hands of the state and
territory health departments.
People admitted to public hospitals in Australia as public (Medicare) patients receive free treatment
by doctors and specialists nominated by the hospital. Private patients in public or private hospitals
have the freedom to choose the doctors according to their own individual preferences. Medicare
schedule fee of 75% for services provided by the treating doctors is paid by Medicare. Patients
opting for private hospitals in Australia are charged for hospital accommodation and items such as
theater fees and medicine. Private health insurance may cover some of these costs but Medicare
does not cover these costs.
Health financing to the private sector
Of all the hospital beds, about one-third is provided by the private hospitals in Australia. The
government is trying to achieve a balance between public and private sector involvement in the

2. system of health care in Australia by encouraging more and more people to take private health
insurance in order to preserve Medicare as the universal safety net. In an effort to make private
health insurance more affordable, the Australian government offers 30% rebate for the cost private
health insurance premiums. In order to assist people facing high annual out-of- pocket health costs,
government has introduced safety nets for medical services and pharmaceuticals.
The Australian Government helps to make private health insurance more affordable by offering a 30
per cent rebate (and higher rebates for older Australians) for the cost of private health insurance
premiums. Safety nets for medical services and pharmaceuticals assist people facing high annual
out-of-pocket health costs. An Extended Medicare Safety Net, introduced in 2004, provides further
assistance by meeting 80 per cent of the out-of-pocket cost of medical services provided out of
hospital once an annual threshold is reached.
So, if you intend to know more about the health care in Australia or a list of the hospitals in
Australia, visit www.localbuzz.com.au. This on-line business directory provides information on all
the business and institutions in Australia. Besides this, it also enables you to list your business free
of cost.