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Costs of children with medical complexity in Australian public hospitals
Rajendu Srivastava1,2, James Downie3, Jane Hall4
1University of Utah School of Medicine, Salt Lake City, Utah, USA.
Insights
Children with medical complexity represent a significant financial burden on Australian hospitals, accounting for a substantial portion of child-related costs despite lower admission rates. Children's hospitals bear the majority of these expenses.
Area of Science:
- Health Economics
- Pediatric Hospitalization
- Public Health Policy
Background:
- Hospital costs for pediatric patients in Australia are substantial.
- Understanding cost drivers is crucial for resource allocation and policy development.
- Children with medical complexity (CMC) represent a vulnerable population with unique healthcare needs.
Purpose of the Study:
- To delineate hospital costs associated with CMC in Australian public hospitals.
- To examine variations in costs and hospital types across Australian states and territories.
- To compare healthcare utilization and costs between adult and pediatric populations, and between CMC and adults with chronic diseases.
Main Methods:
- Retrospective analysis of national administrative data from 212 Australian public hospitals (2010-2011).
- Inclusion of all hospitalized patients, with specific comparisons for children (≤17 years) and CMC.
- Primary outcome measure: total hospital costs.
Main Results:
- Children constituted 9.9% of admissions and 11.9% of total hospital costs.
- CMC accounted for 13.9% of pediatric admissions but incurred 32.1% of total child hospital costs.
- Children's hospitals managed 41% of pediatric admissions, incurring 48% of the total costs for children.
Conclusions:
- Hospitalized children represent a significant national health burden.
- CMC, though fewer in number, drive a disproportionately high share of pediatric hospital expenditures.
- Children's hospitals are central to managing the high costs associated with CMC.
Aim:
To describe the hospital costs, hospital types and differences across states and territories for children with medical complexity cared for in Australian public hospitals.
Methods:
Retrospective national administrative database study of 212 Australian public hospitals from six states (excluding Queensland) and two territories that submitted cost data to the National Hospital Costing Data Collection for 2010-2011. Participants included all hospitalised patients with comparisons between adults and children (17 years of age and younger), and adults with chronic diseases and children with medical complexity. Total hospital costs were the main outcome measure.
Results:
The National Hospital Costing Data Collection contained data from 212 public hospitals; total admissions (adults and children) were 3 519 140 at a total hospital cost of $16 187 400 000. Children accounted for 350 499 (9.9%) of the admissions at a total hospital cost of $1 931 585 123 (11.9%). Of all children, those with medical complexity accounted for 48 758 (13.9%), and their total hospital costs were $620 948 769 (32.1%). Six children's hospitals had 145 213 (41%) of the total children admissions at a total hospital cost of $936 041 843 (48%). Across the states and territories, the number of childhood admissions ranged from 9164 to 146 618 with 4.7-14.8% for children with medical complexity. Total hospital costs ranged from $44 to $592 million with 15.4-39.4% for children with medical complexity.
Conclusions:
The national burden of hospitalised children is substantial. Children with medical complexity only account for a small percentage of hospitalisations but almost one third of total hospital costs for children, with children's hospitals bearing the major costs.
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