Health expenditure NT: Highest per capita spending in Australia

The cost of health expenditure for a person in the NT is almost $3000 more than the nation’s average. We reveal why.

THE Northern Territory has the highest per capita health expenditure in the country.

And it’s due to the “unique challenges” faced by both indigenous and remote communities.

The latest Health Expenditure Australia data, released by the AIHW, has revealed the average cost of health spending from all sources to a single Territorian was $10,878.

The average cost for an Australian was $7926.

The total spent in 2019-20 was $2.7 billion, representing 1.3 per cent of the total $2.025 billion spent in Australia.

It represents a slight climb from $10,626 per person in 2018-19.

A spokesperson for the Australian Department of Health said the Northern Territory’s diverse population played the biggest role in the higher costs.

“Higher per person costs of health care can be partially attributed to the NT having a significantly greater portion of Aboriginal and Torres Strait Islander people and people in remote and very remote areas in its population relative to the population of Australia,” they said.

“Delivering the same health service or goods is more costly in remote and very remote areas compared with major cities due to supply and travel logistics, something that is compounded by the NT’s smaller, sparser population.”

Aboriginal and Torres Strait Islander people were more likely to suffer from chronic conditions and experience a higher burden of disease than the rest of the population.

The Department of Health spokesperson said while the growth of health spending remained stable, the NT’s high per capita amount was hard to miss.

“Growth in health expenditure is consistent between the NT and Australia as a whole, with both increasing by 3.4 per cent per annum over the decade.

“Despite having the smallest total expenditure of a state or territory, the NT has the largest per capita expenditure, $10,878 in 2019-20, compared with an Australian average of $7,926,” the spokesperson said.

Primary health care expenditure includes funding for community controlled Aboriginal and Torres Strait Islander organisations, which is the largest component of health spending in the NT.

It accounted for 47.9 per cent of all spending in 2019-20 in the Territory.

Health Minister Natasha Fyles said the Territory government was committed to improving primary health care for Territorians.

“The Northern Territory has several unique challenges which can contribute to higher health care costs,” she said.

“Increasing access to primary health care in remote areas is our priority to reduce pressure on the public health system.”