What Drives Health Spending in the Northern Territory?
Article first published online: 8 DEC 2010
© 2010 The Economic Society of Australia
Economic Papers: A journal of applied economics and policy
Volume 29, Issue 3, pages 292–300, September 2010
How to Cite
Zhao, Y., Goss, J. and Malyon, R. (2010), What Drives Health Spending in the Northern Territory?. Economic Papers: A journal of applied economics and policy, 29: 292–300. doi: 10.1111/j.1759-3441.2010.00075.x
- Issue published online: 8 DEC 2010
- Article first published online: 8 DEC 2010
- Aboriginal health;
- cost driver;
- health expenditure;
- technology development
This study estimated the relative contributions of identified cost drivers for health services in the Northern Territory from 1979/1980 to 2006/2007. A decomposition model was used to analyse the relative contributions of the potential determinants of the growth in health expenditure. The analysis indicated that there was a shift in the drivers of growth in health expenditure during the study period. Between 1979/1980 and 1992/1993, the increase in health expenditure was mainly driven by service access for rural and remote residents and inflation, each of which accounted for about one-third of the increase in health expenditure. Since 1993/1994 onwards, service access was overtaken by Aboriginal ageing as the leading driver of the health expenditure, followed by population increase. The contribution of inflation halved in the later period. The impact of alternative assumptions for decomposing health expenditure increase was also investigated. The study indicated that Aboriginal ageing, coincident with an epidemic of preventable chronic diseases may be behind the recent increase in health expenditure.