As proud members of the National Rural Health Alliance (NRHA), we are deeply committed to improving health outcomes for rural and remote Australians. The release of the NRHA’s latest report, The Forgotten Health Spend: A Report on the Expenditure Deficit in Rural Australia, is a powerful call to action and we stand firmly behind it.
Prepared by Nous Group and commissioned with the support of the John T Reid Charitable Trusts, the report provides a sobering update on the widening gap in government health expenditure between urban and non-urban communities. Using 2023–24 data, it reveals that Australians living outside major cities are missing out on $8.35 billion in healthcare funding annually.
This equates to $1,090.47 less per person, simply due to their geographic location.
Key findings
The report builds on the NRHA’s 2023 analysis, which had already identified a $6.55 billion shortfall. Alarmingly, the gap has grown by $1.6 billion in just two years, even after adjusting for inflation. The disparities are most pronounced in areas classified under the Modified Monash Model (MMM) as MMM 5–7 being those small rural towns, remote, and very remote communities. In these regions, per capita health expenditure is now $4,701 lower than in metropolitan areas.
The funding shortfall spans multiple sectors, including:
- Primary care
- Hospitals
- Aged care
- Pharmaceuticals
- National Disability Insurance Scheme (NDIS) services
These gaps are not just numbers. They impact real people and translate into real consequences. Rural Australians face longer wait times, limited access to preventive care, and significantly worse health outcomes. Rates of chronic disease, hospitalisation, and premature death are up to 2.6 times higher in very remote areas compared to urban centres.
“Those living in rural and remote Australia receive $1,090 less in healthcare funding per person when compared to their urban cousins.”
Why this matters
- Workforce shortages: Many rural communities rely heavily on short-term locums, with limited access to specialists and allied health professionals.
- Infrastructure deficits: Small markets and geographic isolation hinder investment in health facilities and services.
- Service gaps: Residents often travel long distances for basic care, increasing costs and reducing continuity of care.
These challenges are compounded by the fact that current funding models largely designed for urban settings fail to meet the unique needs of rural communities. The report calls for regionally tailored solutions, including flexible funding models, integrated service delivery, and collaborative workforce planning.
Our role as NRHA members
As members of the National Rural Health Alliance, we join 47 other organisations in advocating for equitable health funding and services for the more than 7 million Australians living in rural, regional, and remote areas. This collective voice is vital in pushing for policy change and ensuring that rural health is not overlooked.
We support the NRHA’s recommendations, including:
- Establishing a $1 billion annual rural health fund to support coordinated, flexible funding across state, federal, and local levels.
- Promoting multidisciplinary workforce models that prioritise continuity of care and community engagement.
- Enhancing regional planning and governance to better align services with local needs.
These solutions are not just aspirational, they are achievable with the right commitment from government and stakeholders.
A call to action
The findings of The Forgotten Health Spend report are a wake-up call. Rural Australians deserve the same level of care and investment as their urban counterparts. The current funding gap is not just unfair, it is dangerous. Lives are being lost, and communities are being left behind.
We urge policymakers, health professionals, and community leaders to read the report and join the call for change. The time for action is now.
Learn more
You can access the full report and explore its findings on the National Rural Health Alliance website.
Together, we can ensure that rural health is no longer forgotten.
