The Public Health Association of Australia (PHAA) is urging the federal government to increase funding for preventative health measures after new data revealed a $13 billion surge in the cost of treating chronic diseases over the past year.
The Australian Institute of Health and Welfare’s (AIHW) Health System Spending on Disease and Injury in Australia 2022–23 report shows disease-related healthcare spending rose from $159.3 billion in 2021–22 to $172.3 billion in 2022–23, an 8.2% increase in current prices.
Chronic diseases accounted for nearly half of the spending—$82 billion—with cancer, cardiovascular diseases, and musculoskeletal disorders consistently dominating costs over the last decade. Among cancers, prostate, non-melanoma skin, breast, and bowel cancers represented the top areas of expenditure.
‘We need to invest in prevention’
PHAA CEO Adjunct Professor Terry Slevin says the findings underscore the urgent need to prioritise prevention.
“In addition to the harms of these preventable diseases, each person living with such conditions experiences pain, suffering, a lower quality of life, and, in too many cases, premature death,” Adj Prof Slevin said.
“This reinforces the need to invest in prevention.”
Currently, just 2% of health spending goes toward public health initiatives.
Adj Prof Slevin calls on the federal government to raise this to 5% of total health expenditure to mitigate rising costs and improve long-term health outcomes.
“We strongly encourage the Australian Government to boost investment to 5% of total health expenditure on prevention.
“This will help ease pressures on our hospital systems in the future, but also means people will live healthier, and for longer,” he said.
