In this paper, trends in hospital service provision are measured using data on the numbers and nature of hospitals, on hospital expenditure and on hospital activity over recent years. The number of public acute care hospitals was fairly stable, however, bed numbers decreased. Hospital numbers rose for private hospitals, as did numbers of beds, particularly for group for-profit private hospitals. Recurrent health expenditure on hospitals as a proportion of all recurrent health expenditure fell, although it rose for private hospitals, and real increases in expenditure occurred for both public acute and private hospitals. Population rates for separations and patient days rose for private hospitals and were stable and fell, respectively, for public acute hospitals. Average length of stay decreased for both public acute and private hospitals, with increasing numbers of separations occurring on a same day basis. Increasing proportions of procedures were undertaken during same day stays, and in private hospitals. Separation rates varied geographically, with highest rates overall, and for public hospitals and overnight separations, for patients resident in remote centres and other remote areas. Highest rates for private hospitals were for patients resident in capital cities, other metropolitan centres and large rural centres.