Australia needs to modernise its health and care system to make it more sustainable, reduce cost pressures by embracing technology, lift productivity and deliver higher standards of care for all generations, according to a new Business Council report.
The Business Council's Health and Care Economy Blueprint, Supporting A Healthy and Productive Nation has identified an outdated model of delivering care, an ageing population, a shrinking workforce and an increase in chronic disease as putting strain on Australia's world leading health and care system which will only increase the funding gap and limit care options.
The blueprint is underpinned by six key principles and recommendations as well as a range of actions, including:
- Empowering Australians with choice
- Improving the financial sustainability of the health and care economy
- Unlocking innovation and technology
- Supporting a skilled workforce
- Strengthening complementary public and private systems
- A coordinated national approach to building a better system
This report is about finding solutions to address the pressures of the health and care system and comes off the back of the work done by the Productivity Commission that showed digital technology investments could save up to $5.4 billion annually on our healthcare system and around $355 million through fewer duplicated tests.
Chair of the BCA Health and Care Services Committee and Australian Unity Chief Executive Rohan Mead said the status quo for the health and care system will lead to fewer options for all Australians, while also putting a greater tax burden on younger generations.
"Our healthcare system is one of the best in the world and we need to ensure that future generations have access to the same standard of care we expect today," Mr Mead said.
"However, our leading global position in health and care outcomes is at risk, which will threaten living standards, dent productivity, make it harder to fund services and limit choice - especially for regional and remote Australians.
"Our health system is still based off a model from the era of Florence Nightingale, and we need to look at how technological changes and new models of care can provide better outcomes and make Australians even healthier."
By the second half of the century, Australia's spending on health and care is projected to exceed 10 per cent of GDP.
The report also outlines that the number of working Australians per retiree will fall from four to less than three, which will increase the tax burden on younger Australians. Growing mental health demand and chronic disease treatments will add to cost pressures.
Given our federated system, the public and private model, and the intersection between health, disability and aged care, the BCA's report shows that a National Health and Care Economy Strategy should be developed to provide a vision to all stakeholders and identify areas for improvement to maximise productivity and boost efficiencies.
"In 2025, it would astound many Australians that the majority of hospitals are still paper based and that up to 75 per cent of global fax traffic comes from medical services - it is time the health and care system came into the modern era."
"Boosting productivity and innovation in our health and care system will pay dividends to future generations of Australia and assist us now to become a healthier nation," Mr Mead said.
"AI has the potential to free up 30 per cent of a clinician's time, allowing them to spend more time with Australians, while telehealth already saves Australians up to $895 million per year in reduced travel - these are improvements that make everyone better off.
"We need to be able to equip workers with the technology and digital skills to make their jobs easier. That is fundamental if we want to attract more workers to the sector.
"As the demand for health and care needs grow, we need to examine if there are better delivery methods and funding models to deliver high standards of care for a changing population. Early intervention and prevention will be crucial to shift the dial."
The BCA and its members are committed to seeing productivity increases across the Australian economy to support better business investment, competitiveness and prosperity.
Ultimately, higher productivity growth will see increased living standards for future generations.
