MEDIA RELEASE
Indigenous health expenditure patterns vary by
remoteness
Expenditure on health for Aboriginal and Torres Strait Islander people varies with
remoteness, but the patterns differ between each of the major types of health spending,
according to estimates released today by the Australian Institute of Health and Welfare
(AIHW).
‘It really is a mixed picture,’ said Richard Juckes, Head of the AIHW’s Expenditure and
Economics Unit.
‘Our report, Expenditure on health for Aboriginal and Torres Strait Islander people 2006–07: an
analysis by remoteness and disease, shows that Indigenous vs non-Indigenous health spending
patterns are quite different from city to regional and remote areas, depending on whether we
are talking about Medicare, the Pharmaceutical Benefits Scheme or hospital spending.’
‘For example, with Medicare Benefits Schedule (MBS) expenditure in 2006–07, overall per
person spending was lower for Indigenous Australians at 58 cents to every dollar spent on
non-Indigenous Australians. But in remote areas it was more like 77 cents to every dollar.’
‘For GP services, the per-person amounts spent were virtually equal between Indigenous
and non-Indigenous Australians in Outer Regional, and Remote/Very Remote areas. But for
the category of Medicare-funded services that includes surgical operations and other
procedures, Indigenous spending was less than one-third of non-Indigenous spending in
most areas.’
The report shows that expenditure on pharmaceuticals available through the Pharmaceutical
Benefits Scheme (PBS) increased with remoteness for Indigenous Australians ($159 per
person in major cities, $223 in Remote/Very remote areas), but fell with remoteness for non-
Indigenous Australians ($285 per person down to $200 per person).
Mr Juckes said the higher PBS expenditure for Indigenous Australians in remote areas was
driven by government arrangements which allow patients attending an approved remote-
area Aboriginal and Torres Strait Islander health service to receive PBS medicines without
the need for a prescription form, and at no charge.
According to the report, over 40% of hospital admissions for Aboriginal and Torres Strait
Islander people in 2006-07 were for the disease grouping that includes diseases where kidney
dialysis is a treatment. This category was also responsible for the highest health expenditure,
accounting for 10% of total Indigenous admitted patient expenditure.
For their non-Indigenous counterparts, these diseases were also responsible for the highest
proportion of hospital admissions, accounting for 16% of all admissions, while
cardiovascular diseases had the highest expenditure, accounting for 12% of total admitted
patient expenditure.
Canberra, 6 October 2010
Further information: Richard Juckes, AIHW, tel. (02) 6249 5126, mob. 0422 007 924
For media copies of the report: Publications Officer 02 6244 1032
NEWS 
