The private hospital sector is an important part of Australia’s health care system. High-level evidence and stakeholder feedback provided prior to the commencement of the Health Check raised financial viability concerns that potentially impact the health system and patient outcomes. This Health Check on the private hospital sector further develops the evidence base and identify drivers contributing to financial outcomes.

This public summary of the Health Check provides only highly aggregated data to ensure commercially sensitive information is not disclosed and the data provided is not misinterpreted.

Key points

• Private hospital sector has faced a number of shocks including the COVID-19 pandemic and it continues to experience a degree of volatility, due to inflationary pressures and workforce challenges which are working through the system.
• In July 2024, there were 647 private hospitals providing more than 36,000 beds.
• The sector is diverse, with variations in size, location, types of treatments delivered, business models and agreements with private health insurers and other funders. 
• Australia’s private hospitals cover more than 40% of all hospital admissions and deliver approximately 70% of elective surgeries. 
• In 2023–24, private health insurers paid benefits of approximately $18 billion that funded approximately 5 million hospital treatments. 
• Over the 12 months to 30 June 2024, total benefits paid by insurers increased by approximately 7.9% and the number of treatments funded increased by 5.1%. 
• Healthcare providers identified a number of services that were increasingly difficult to offer. Two particular services of concern are obstetrics and mental health.