Some Australian public hospitals are spending almost twice as much as others to treat patients experiencing similar issues, a new report has found.
Data from 2012-13 to 2014-15 shows some hospitals spent up to $6400 to deliver an average service for acute admitted patients,' while others spent as little as $3300.
The average cost to hospitals for such services was $4680, the report from the Australian Institute of Health and Welfare on Thursday shows.
Acute admitted patients include those in hospital for childbirth, surgery, or other diagnostic and therapeutic procedures.
The new report has explored data available for 27 major public hospitals and found total hospital costs fell by one per cent between 2012-13 and 2014-15, after adjusting for inflation.
Hospital spending rose by six per cent during that period, but activity only lifted by five per cent.
"This indicates that as a group, major public hospitals have delivered care for less cost," the report states.
Four of the five major public hospitals with the lowest costs during the period were Victorian-based, being The Alfred, Monash Medical Centre, University Hospital Geelong and St Vincent's Hospital.
The other hospital spending the least was Nepean Hospital in NSW.
The five facilities with the highest costs were spread across Australia, including the Canberra Hospital in ACT, Princess Alexandra Hospital in Queensland and Royal Adelaide Hospital in South Australia.
The Royal Perth Wellington St Campus and Sir Charles Gairdner Hospital in Western Australia were also among those with higher costs.
There was ultimately $48 billion spent on running public hospitals in 2014-15, the report shows.
That made up the largest share of the $161.6 billion spent on health by governments, insurers and patients during that time.
AIHW spokesman Dr Adrian Webster said the report will help authorities better understand the hospital system.
"The report also helps build a picture of costs over time, so we can develop a long-term evidence base to inform policies aimed at improving the efficiency and sustainability of our health system," he said.
