The application of a holistic approach to Aboriginal health is emphasised by a number of health agencies. There are important economic characteristics that will affect the efficiency in the application of this approach. Policy makers need to understand these implications when considering the most effective means of closing the gap in health outcomes for Aboriginal people in the Australian desert. Examples of this include the role of living on traditional country in improved health outcomes relevant to the cost of service delivery to remote centres and the range of other benefits including environmental services and reduced or delayed hospital costs.