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.
Abstract

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