What 727,000 Hospital Stays Reveal About Australia’s Health System

We often hear how overstretched Australia’s hospitals are. But what’s less often said is how many of those hospital stays may not have been necessary in the first place. In 2022–23 alone, more than 700,000 hospitalisations were potentially preventable—cases where earlier, better, or more accessible care in the community might have kept people out of hospital altogether. And as new data shows, where you live plays a big part.

The data from the Australian Institute of Health and Welfare shows that in 2022–23, one in every 17 hospitalisations in Australia was potentially preventable. These were cases where, with the right primary or community-based care at the right time, hospital admission could have been avoided. From chronic illnesses like asthma and diabetes to acute infections and vaccine-preventable diseases, these hospital stays offer a window into how well our out-of-hospital systems are working—and where they’re falling short.

What the data also reveals is a story of geographic and socioeconomic divide. Australians living in remote or very remote areas were hospitalised for preventable conditions at twice the rate of those in major cities. Those in the most disadvantaged areas had 1.7 times the hospitalisation rate of people in the most advantaged areas. It’s a stark reminder that access to care is not just about services—it’s about where you are, who you are, and what resources are available to you.

But over a six-year period, there has been some good news. Potentially preventable hospitalisations have declined since 2017–18, particularly during the COVID-19 pandemic. That dip was most noticeable in vaccine-preventable conditions, reflecting the impact of public health measures like lockdowns, mask mandates, and increased vaccination uptake. But with those measures largely relaxed, the latest data shows a rebound in hospitalisations in 2022–23—raising questions about how well we’ve sustained improvements in prevention and early intervention.

The reasons behind potentially preventable hospitalisations are complex. Sometimes they reflect gaps in care—like delayed GP visits, limited chronic disease management, or poor access to culturally safe services. Sometimes they reflect social determinants of health: housing, income, education, transport. And sometimes, they signal a health system that isn’t keeping pace with need.

Importantly, the AIHW cautions against using this data as a simple scorecard. Higher rates of preventable hospitalisation don’t always mean poorer care—they can also indicate higher disease burden or more complex needs. But when patterns persist across geography and disadvantage, they’re hard to ignore.

For health services and policymakers, this report highlights where primary care is working, and where it’s not reaching far enough. Reducing preventable hospitalisations isn’t just about saving hospital beds. It’s about delivering timely, equitable care that supports people long before they need to walk through emergency department doors.