Media release
27 November 2025
A new Australian Institute of Health and Welfare report has found “potentially preventable hospitalisations” were 8.5 percent of total admitted patient spending in 2023-24, and totalled $7.7b.
The Cost of potentially preventable hospitalisations in Australia 2023–24 report published on 26 November classifies these into three broad categories – acute conditions, chronic conditions, and vaccine-preventable ones.
Chronic conditions comprised most (45.2%) of total potentially preventable hospitalisations, followed by acute conditions (37.5%). Spending was highest for diabetes complications ($962 m), followed by congestive cardiac failure ($861 m) and chronic obstructive pulmonary disease (COPD) ($797 m).
“This report tracked hospital expenditure from 2014-15 to 2023-24 and shows most people were hospitalised for chronic conditions that could be prevented,” Association CEO, Adj Prof Terry Slevin, said.
“Properly resourcing prevention programs mean less pressure on our stretched emergency departments and ambulance services, so less hospital ramping.
“The fewer people who get sick, the less it costs us as a society.
“And if we do get sick, avoiding repeat hospitalisations also saves us money.
“Fewer people getting sick means a better quality of life for everyone, which leads to happier and more productive people.
“This report further reinforces the findings of the recent Productivity Commission report Delivering quality care more efficiently where one of the three foci was about boosting investment in prevention.
“It’s our hope that the forthcoming Australian Centre for Disease Control will expand its remit to include chronic illnesses, and act on the potential in the National Preventive Health Strategy.
“For decades, all Australian and state/territory governments have prioritised spending on acute care instead of keeping people out of hospitals.
“This latest AIHW report, if it’s acted on, can help us address that imbalance.”
For further information/comment:
Paris Lord (he/him), PHAA Communications & Media Manager, 0478 587 917, [email protected]
About us:
We’re Australia's peak body for public health and advocate for the health and wellbeing of everyone. We strive to help prevent – rather than cure – illness and disease. Learn more at https://www.phaa.net.au/
Contact details:
Paris Lord (he/him), PHAA Communications & Media Manager, 0478 587 917, [email protected]