This report provides information on sources of funding for the provision of care to admitted patients in Australian hospitals in 2005-06. The report compares funding for privately insured and public patients in public and private hospitals and, in particular, compares the Australian Government contributions for these patients. The Australian Government's average contribution per episode for public patients was $1,367 for the subset of AR-DRGs used in the analysis, compared to the average contribution for privately insured patients in private hospitals of $1,364 per episode.