In an era of active health reform, what might we expect from the new Australian Government?
Health systems around the world are grappling with many common challenges: rising costs and finite resources; the growing burden of chronic and lifestyle-related diseases; ageing populations; emerging technologies; and information-rich consumers with high expectations. Each nation’s approach to tackling these challenges is influenced by its history, societal values, legacy health systems and political environment.
Australia’s health system is in an era of active reform, but the journey is far from over.1 The election of the new federal Coalition government is an opportunity to advance reform with a new focus aligned with the Coalition’s priorities for our nation. So what might those priorities
be in relation to health?
Three broad policy themes articulated by the Coalition could form the practical and philosophical foundations
for significant reforms in the health sector. First, Prime Minister Abbott has declared his desire to be the “infrastructure Prime Minister” by investing in nation-building projects.2 Second, the Coalition has promised strong fiscal management and national debt reduction. And third, Coalition policy continues to support the role of the private sector in the financing and delivery of health services, within a mixed public–private system. These themes point to some areas where health reform priorities may align with the broader policy priorities of the new government.
When considering infrastructure needs in health, we are likely to first think in terms of hospitals. But there are other strategic investments in national infrastructure — both physical facilities and system enablers — that would drive efficiency, support quality and enable a more agile and responsive health system for the future. Priorities worthy of consideration are subacute care services, national
e-health and data systems, and research infrastructure.
The National Health and Hospitals Reform Commission (NHHRC) described subacute services — including rehabilitation, geriatric evaluation and management services, and transition care — as a long-neglected “missing link” in the health system and a prime candidate for a major capital boost.3 In 2008 and 2011, two National Partnership Agreements provided an initial capital boost.4 The 2008 agreement alone increased subacute services by more than 600 000 extra bed-day equivalents by the 2011–12 financial year, representing an above-target increase of 25.9%.5 However, neither agreement has so far been extended. The 2008 agreement fell over the fiscal cliff in June 2013; the 2011 agreement will expire in June this year. Subacute services need further investment rather than being wound back. Without urgent attention, pressure will again build on public hospitals as the more costly “default” environment for care.
Australia’s e-health infrastructure was identified as
a national priority by the NHHRC3 and the National Primary Health Care Strategy,6 yet it is still woefully underdeveloped. Prime Minister Abbott has long recognised its importance: his first speech as health minister in 2003 was on the subject of e-health.7 The new Coalition government has provided strong in-principle support for shared electronic health records, starting with a review of the implementation of the personally controlled electronic health record initiative.
Beyond the concept of shared records, health is also lagging far behind other sectors in the smart use of data
for stronger systems management, quality improvement, and health services and health policy research. Recommendation 34 of the NHHRC, calling for national linkage of health data for access by clinicians, researchers and health managers,3 has not been implemented.
Increasingly, the “e-world” is offering innovative options for better access to information, advice, care and coordination. Telehealth provides another “setting” of care, while mobile health and digital health tools empower patients with timely advice. Australia’s infrastructure investment and financing systems need to recognise and support this shifting health delivery environment.
health dollar
Waste in health is an ethical issue, and getting the best value for every health dollar is a worthy priority. The good news is there are many opportunities to improve efficiency in the health sector.8
Health financing systems need to support appropriate and connected care across the continuum of care, whether delivered in acute, subacute or community settings. The Australian health system’s silos of funding and fragmented delivery remain unresolved challenges and often encourage care in an inappropriate setting (eg, in a hospital bed rather than in the community mental health service or outpatient rehabilitation program). Prevention, active management of health risks, early detection and intervention also play a role in the efficiency equation.
The desire to tackle waste and inefficiency is unquestioned. But policymakers and system managers are currently unable to fully harness and leverage the power
of data to make informed decisions. The smart use of data was a key recommendation of the NHHRC.3 Data linked from multiple sources, such as the Medicare Benefits Schedule, Pharmaceutical Benefits Scheme, and public and private hospitals, could be analysed to show patterns of unwarranted clinical variation and to identify opportunities for improved efficiency and appropriate care. Providing comparative clinical performance data directly to clinicians offers information to those in the best position to change practice and to increase both quality and efficiency of care. By reducing errors and duplication, personally controlled electronic health records can be expected to increase real output in the hospital and medical services sector by up to 6%,8 as well as empowering and informing people in their own health care decisions.
Although governments contribute two-thirds of the funding for Australia’s health care, two-thirds of health care is provided through the private sector (ie, through private and non-profit health service providers).9 Recognition of the private sector’s vital role is imperative for genuine health system reform. An immediate priority could be focusing on better linkages between public and private providers in the integrated delivery of health and aged care at a local level. The network of primary health care organisations (Medicare Locals) that has been established could play an important role in this. Contestability and contracting of public services to
achieve better value for the public health dollar should
be examined.
Medicare is and should continue to be the backbone of Australia’s universal health care entitlement. However, entitlement does not always translate to access. The public sector cannot always deliver on its promise or deliver the best value. The Coalition might also explore the NHHRC’s Medicare Select model, which potentially offers a better use of public and private health resources.3 Greater consumer choice in selecting a preferred health and hospital plan could drive innovation, responsiveness and efficiencies across the entire system.10 It is time to start preparing for the next generation of Medicare — a more agile, person-centred system, delivering the universal Medicare entitlement through active purchasing, with public, private and non-profit providers all competing
to deliver high-value, high-quality care.