In 1987 there were 1,428 psychiatrists in Australia, 8.8 per 100,000 population (Burvill, 1988), 55% identified as in private practice and 45% in public sector practice. Let us be clear about terms. Public sector practice means that each week you receive a salary from the public purse whether you have seen one or a hundred patients. Private practice means that you are paid on a piece-work basis, also largely from the public purse (national health insurance or Medicare), but the income (at about $100 per hour) depends exactly on the number of hours spent with patients. On average, private psychiatrists in Australia gross about $150,000 per year, out of which they must pay practice expenses. The pay for public sector psychiatrists probably averages $70,000 to which, for the purposes of our calculation, we will add the cost of rooms, telephone and secretary provided by the hospital which at $30,000 brings the cost of a public sector psychiatrist to about $100,000 per year. If 45% of psychiatrists are in public practice then the averaged cost of a psychiatrist in Australia can be calculated as $127,500 per annum, and as there are 8.8 psychiatrists per 100,000 the cost, calculated on this simple basis, is $1.12 million per 100,000 population (Andrews, 1989).