Up to one in 10 public hospital beds in Australia are occupied by 'stranded' patients awaiting alternative accommodation in aged care or disability services, according to a new report. The findings have intensified calls for the federal government to increase its share of public hospital funding.
The report, commissioned by state and territory treasurers, identifies four main drivers of rising hospital costs: high inflation, workforce shortages, increasing patient complexity, and a growing number of patients who cannot be discharged due to a lack of supported accommodation. It notes that 8-10% of beds are taken by such patients, most often awaiting residential aged care or specialist disability accommodation.
Productivity Commission data cited in the report shows a sharp rise in long-stay patients awaiting aged care placement across all jurisdictions except Victoria, which has historically invested in public sector aged care beds. The report recommends that the commonwealth take greater responsibility for funding and overseeing timely access to aged care and disability supports.
Federal Health Minister Mark Butler stated that the commonwealth has offered $215bn in hospital funding, $20bn more than usual. However, the Council for the Australian Federation claims the offer falls 'tens of billions of dollars' short of the 42.5% funding share by 2030 agreed in December 2023, with the actual share closer to 35%.
NSW Premier Chris Minns warned that patients may be turned away from emergency departments if the federal government does not step up. 'We can't have hundreds of patients in public hospitals that should be discharged and, at the same time, see a net reduction in commonwealth funding,' he said.



