Hospitals could be $1b more efficient

Almost $1 billion could be saved each year if public hospitals were forced to be more efficient with their spending, a think tank says.

The Grattan Institute says an efficient price for hospital services should be set by state governments to remove what it says is about $928 million in "avoidable" spending annually.

The institute's health director, Stephen Duckett, called for administrators to be held more accountable for spending, saying the current funding for the average cost of care rewarded inefficiency.

The institute's report, Controlling Costly Care, says