Health expenditure in Australia in 2009-10 increased to $121.4 billion. As a percentage of GDP it was 9.4% of the GDP, 0.4% higher than in 2008-09. Public hospital services accounted for under one-third (31%) of the total increase in 2009-10, while medications accounted for over one-fifth (21%) of the total growth. 2009-10 marks the first year of the transition to the National Health Care Agreement, a new health care funding arrangement between the Australian government and state and territory governments.