The Hidden Cost of Musculoskeletal Injuries in Australia

Musculoskeletal disorders (are one of Australia’s most serious health and economic challenges. They account for 12.6% of the national disease burden, second only to cancer, and are the largest contributor to years lived with disability worldwide.

While chronic conditions such as lower back pain receive significant attention, acute soft-tissue injuries including meniscal and rotator cuff tears remain under-recognised. Their prevalence and cost are increasing rapidly, driving claim expenses, delayed recovery, and loss of productivity.

The Growing Burden

The prevalence of shoulder pain has risen from 7% to 27% among Australians under 70, with a lifetime risk of 67%.

Knee injuries are also increasing, with annual incidence rates of 83.9 per 100,000 males and 60.1 per 100,000 females.

These injuries affect work capacity, daily function, and mental wellbeing, particularly in physically demanding occupations.

The Australian Institute of Health and Welfare (AIHW) reports more than 745,000 musculoskeletal-related hospital admissions each year, with 87% of emergency surgical admissions occurring in public hospitals. Yet, musculoskeletal disorders are not formally recognised as a national public health priority, despite their scale and impact.

Structural Challenges

Australia’s fragmented care system creates delays and inequities. General Practitioners (GPs) act as gatekeepers but face limited time, diagnostic tools, and referral options. This often results in inconsistent treatment pathways and overreliance on imaging or surgery.

Physiotherapists and exercise physiologists, unable to refer directly to orthopaedic specialists, encounter bottlenecks that extend recovery times and increase costs.

The Economic Toll

The average cost of a single ACL injury is $14,830, with national costs expected to exceed $314 million by 2030–31.

For shoulder pain, public hospital treatment costs average $4,961 per patient annually, not including lost wages or productivity.

Within workers’ compensation, musculoskeletal claims account for nearly 90% of all serious workplace injury claims, highlighting their financial and social impact.

These injuries create high medical and rehabilitation expenses and contribute to psychological distress, including anxiety, depression, and long-term disengagement from work.

The Case for Value-Based Healthcare

Australia needs a value-based healthcare (VBHC) model that focuses on outcomes instead of service volume. This approach requires better data, early intervention, and shared accountability between clinicians, employers, and insurers.

VBHC prioritises patient-reported outcomes, multidisciplinary collaboration, and digital tools that support measurable recovery.

Initiatives such as Medibank’s No Gap Joint Replacement Program show that integrated and outcome-driven care improves both recovery and affordability. Similar principles should guide non-surgical musculoskeletal disorder management, with a stronger focus on early rehabilitation and function restoration.

Navigator’s Active Recovery Clinics (ARC) and Early Intervention (EI) programs apply these principles through motion sensor technology, exercise-based rehabilitation, and psychological screening. This model supports faster return to work (RTW) and reduces claim escalation.

By combining clinical expertise with technology and data, Navigator delivers measurable improvements in recovery speed, adherence, and long-term function. These outcomes lead to better RTW rates and lower claim costs for insurers and employers.

Conclusion

Australia’s musculoskeletal injury burden continues to grow. Reducing its impact requires policy reform, clinician training, and investment in coordinated, patient-centred care.

Without structural change, hospital demand, claim costs, and workforce loss will keep increasing. The solution lies in integrated care models that measure success by recovery and quality of life, not procedure counts.

Navigator is driving this change by delivering data-driven, multidisciplinary rehabilitation that restores health, reduces costs, and supports Australians to recover and return to work.

Sources

• Australian Institute of Health and Welfare (2023). Chronic musculoskeletal conditions. (https://www.aihw.gov.au/reports/chronic-musculoskeletal-conditions/musculoskeletal-conditions/contents/summary)

• Economist Impact (2023). Musculoskeletal Injuries in Australia: Current Challenges and Opportunities. pdf