Increasing the efficiency and flexibility of capital funding for public and private hospitals

Abstract

This paper outlines the recent history of capital funding in the health sector in Australia. It focuses on the trends incapital expenditures and the roles of the public and private sectors. The demand for future capital funding willdepend upon a number of factors, including the state of the current capital stock and uncertain future impacts oftechnology and changes in patient demands. Because of these uncertainties, capital funding for the future must beflexible to meet any changes in operations and demand. The paper highlights the possible use of joint ventures betweenvarious public and private organisations, based on the principles of competition and cooperation.