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The Economics and Financing of Hospitals in Australia
Author(s) -
Palmer George R.
Publication year - 1986
Publication title -
australian economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.308
H-Index - 29
eISSN - 1467-8462
pISSN - 0004-9018
DOI - 10.1111/j.1467-8462.1986.tb00634.x
Subject(s) - activity based costing , business , resource allocation , finance , health economics , actuarial science , operations management , medical emergency , medicine , public health , nursing , accounting , economics , market economy
The Australian hospital industry is described and it is noted that the term ‘hospital’ is applied to a wide range of institutions. The main problems and issues associated with hospitals are discussed, including the lack of adequate methods of measuring their ‘products’ and of allocating funds to them. The role of the medical staff in influencing the ‘demand’ for hospital beds and in resource allocation is emphasised as a major influence on hospital behaviour. In a study of the determinants of the costs of Victorian public hospitals it was found that the complexity of the case‐mix as measured by diagnosis related groups (DRGs) was a major determinant of teaching hospital costs but not of those of other large hospitals. DRG‐based funding and costing of hospitals is recommended as a strategy for achieving increased efficiency.