Parking at a hospital is expensive. But the reason why is more complex than you might think

Parking at a hospital is expensive. But the reason why is more complex than you might think

Hospital parking is a big revenue earner; public hospitals in NSW collected more than $51 million in parking fees in 2024 alone. It may be tempting to view parking fees as exploiting a captive market, but the reality is far more complex. RMIT experts explain.

Co-authors Lisa Farrell and Meg Elkins

Key points:

  • For families already struggling in a cost-of-living crisis, hospital parking fees can be a financial barrier to supporting loved ones in their most vulnerable moments.

  • Patients and visitors are often too sick or time-poor to consider using public transport, leaving them with no choice but to pay for hospital parking. 

  • Hospital car parks at prime locations attract other users, including city workers or tourists. High parking fees act as a deterrent and ensure spaces are available for hospital users.

  • High parking costs could lead to longer hospital stays by deterring visitors or carers, who are critical to recovery. 

  • Possible solutions include charging different users different prices or implementing a consistent approach to concession parking rates.

Read more at The Conversation

Lisa Farrell is a Professor of Economics (Health Economist) at RMIT University, specialising in the economics of disadvantage and vulnerability.

Dr Meg Elkins is Senior Lecturer in Economics at RMIT university, specialising in community wellbeing and dynamic pricing.

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General media enquiries: RMIT Communications, 0439 704 077 or news@rmit.edu.au  

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