Allocative efficiency refers to the ability to appropriately allocate resources to equally performing but less costly clinical services. Elements that constitute towards allocative efficiency are for example ranking diseases based on priority, investing in the prevention of disease and hence minimizing preventable hospitalizations. Such efficiency can be evaluated through output such as medical staff training, hospital bed availabilities and prevalence of technology in hospitals. Health spending in Australia accounted for 9.1% of GDP in 2009-2010 (OECD 2012) which is lower than the average of 9.5% in other OECD countries. Percentages of GDP spent in the US and other European countries include US(17.6%), Netherlands (12.0%), France and Germany (11.6%), and Switzerland (11.4%). Such spending in Australia translated to 3.1 physicians per 1000 population which coincided with the OECD average and 10.1 nurses per 1000 population which was higher than the OECD average. These figures show that for a less than average spending on health care, similar numbers of doctors and more nurses were trained. This implies that there is still room for an increase in efficiency in relation to the countries that are spending more but producing less.
Statistics show that acute care hospital beds have fallen for most OECD countries. The ratio of beds to patients in 2009 for