Why is the hospital parking so expensive? Two Economic Research Institute explains

Imagine you have to pay $ 39 per day I park my car while visiting a sick child in the hospital.

For families that are already having difficulty in the crisis of survival, hospital parking costs are not another cost. They can be a financial barrier to supporting loved ones in the most vulnerable moments.

Hospital parking is a big imported income. Public hospital in New South Wales I collected almost $ 57 million In 2024, parking costs. In 2023, it rose from $ 32 million.

You may want to see the hospital parking fee as the prison market. But reality is much more complicated.

This includes urban economics, medical funding pressure and competition for limited space, and often busy city centers.

Let’s start with supply and demand

Basic economics says the price is a mechanism that balances supply and demand. This is called equilibrium price. If the demand is greater than the supply, the price rises. Therefore, in the case of urban hospitals where parking spaces are limited, the tribe is surprisingly a market situation that increases the price.

However, according to economics, despite the price, if there is still a demand for parking, the supplier can claim more than the equilibrium price in some situations. In short, this “inelastic demand” means that you can claim more for prisoners.

Hospital patients and visitors can claim to be a prisoner. Many hospitals offer well -provided services by public transportation, but hospital patients and visitors are often too sick or lacking. So they have little choice than paying parking costs. In the case of rural hospitals, visitors must drive because public transportation is limited or there is no limit.

Are the hospitals using the demand for inelastic parking for parking? They are Price Gausing -What is the price setting reasonable or fairly considered? Or is there a reason to set a high price?

Location, location, location

The parking lot of the hospital in the main location is not attractive only to hospital patients and visitors. They are also attractive to those who work in the city or other users, such as sightseeing. High parking costs block these users so that hospital users can use space.

It prevents hospital users from being excessively staying at high prices. This does not interfere with non -hospital activities (e.g. shopping) before the hospital promise or visit and return to the car.

The hospital also charges high prices to raise health care income. A Statement to ABC Earlier this year, NSW Health said that additional money raised in parking was reinvested in health services and facilities.

However, it is reasonable to encourage visitors.

But raising parking costs to support hospital budgets can be a wrong economy. We know Hospital visitor It plays an important role for the patient. Recovery time. Therefore, if high parking costs interfere with visitors or caregivers, this can lead to longer hospitals for loved ones.

Inexpensive parking can allow more visit to a short hospital per patient and significant cost savings.

I had a direct experience of this when my elderly father, who had dementia, was recently hospitalized. The hospital allowed access to 24/7 visitors for free hospital parking with a caregiver (in this case). Approach 24/7 is often important for dementia patients who are confused in the hospital. This direction is usually worse in the evening (called sunset).

Giving a caregiver means that employees can focus on medical problems. It was facilitating to visit outside the normal visit (if dementia patients are generally needed) and when there is a low demand for parking spaces.

Who needs a cheap parking?

High parking prices reflect high demand for fixed supply of parking spaces distributed to those who are willing to pay the most (people with income). But a better solution is to be distributed as needed (ie, to increase patient welfare).

Economic solutions are to claim different prices for other users. Most hospitals already do this by providing concessions. However, concessions can be different hospital or situation. It is not known that everyone can use the parking lot of concessions, and it can be difficult to find out who is qualified.

Therefore, if you are worried about hospital parking costs, we know the commission and available concessions before parking. It can be found on most hospital websites.

Currently, concessions are generally based on income (including concession cards). But we need a greater change to provide concessions as needed. For example, people visiting patients with long distances are clearly needed to support patient welfare.

Media Campaign I requested National limit for hospital parking costs for frequent users.

Most parking lots have a daily limit, but often users can accumulate large bills soon for a few weeks or months. Many patients, especially patients who need frequent treatment, such as dialysis, accumulate parking costs every year.

How can we make a cheaper and fair work?

We must apply concession rate to hospital visitors as well as income. It is necessary by the importance of visitors to patient welfare and healing process.

We need a consistent rules of the hospital on concessions. This simplifies the process of the hospital parking lot user.

You should also look at the long -term solution. When you expand your hospital or plan a new hospital, you can consider changes in your main location. This will help users other than hospitals to make parking less attractive.

The task of the medical system is to balance the need for operating the cost of equality and accessibility to prevent the treatment of equality and the necessary treatment.