The Australian Institute for Health and Welfare (AIHW) has released new data revealing that potentially preventable hospitalisations (PPH) in Australia cost the nation $7.7 billion in the 2023-24 period. These hospitalisations accounted for over 3 million hospital bed days across the country, highlighting a significant strain on the healthcare system.
PPH refers to hospital admissions for conditions that could potentially be avoided through timely and effective primary care, early disease management, or public health interventions. The data underscores the critical role of preventive healthcare and the need for enhanced primary care services.
Breakdown of Costs and Conditions
Of the total PPH spending, chronic conditions represented the largest share, accounting for 45% of all costs. Diabetes complications emerged as the leading chronic condition, costing $962 million, followed by congestive cardiac failure at $861 million, and chronic obstructive pulmonary disease (COPD) at $797 million.
Acute conditions contributed to 38% of the PPH costs, with urinary tract infections leading this category at a cost of $695 million. Pneumonia and influenza were significant contributors to vaccine-preventable costs, making up more than 60% of these expenses.
“This report tracked hospital expenditure from 2014-15 to 2023-24 and shows most people were hospitalised for chronic conditions that could be prevented,” said Public Health Association of Australia CEO, Adj Prof Terry Slevin.
Implications for Healthcare Policy
The findings have sparked a call for action from healthcare leaders. Prof Terry Slevin emphasized the importance of investing in prevention programs to alleviate pressure on emergency departments and reduce hospital ramping. “Properly resourcing prevention programs means less pressure on our stretched emergency departments and ambulance services,” he stated.
Prof Slevin also highlighted the potential cost savings from reducing hospital admissions and reiterated the Association’s hope that the Australian Centre for Disease Control will prioritize chronic disease prevention. “For decades, all Australian and state/territory governments have prioritised spending on acute care instead of keeping people out of hospitals,” he added.
Addressing Vaccine Hesitancy
Meanwhile, the Australian Medical Association (AMA) has raised concerns over declining immunisation rates, which are exacerbating the issue of preventable hospitalisations. In its report, “From coverage to concern: a policy analysis of Australia’s immunisation decline,” the AMA calls for immediate action to combat vaccine hesitancy.
“Our hospitals are already in logjam, operating at or above capacity, and yet nearly 10% of preventable admissions are linked to vaccine-preventable illnesses,” AMA President Dr Danielle McMullen stated, referencing the AIHW report.
Dr McMullen stressed the importance of strengthening public health initiatives to improve vaccine coverage across all age groups. “We must act now because vaccines aren’t just about stopping a sniffle—they are about saving lives,” she asserted.
Looking Forward
The AIHW report and the AMA’s findings highlight the urgent need for a shift in healthcare policy towards preventive measures. As Australia grapples with the financial and logistical challenges of preventable hospitalisations, experts are calling for a unified approach to enhance primary care, improve vaccination rates, and ultimately reduce the burden on the healthcare system.
The path forward will require coordinated efforts from government bodies, healthcare providers, and the public to address these systemic issues and foster a more sustainable healthcare model. As the nation looks to the future, the focus remains on prevention as a key strategy to improve public health outcomes and reduce unnecessary healthcare costs.
