Investing in preventive health measures to keep Australians healthier for longer is the key to unlocking long-term productivity gains and economic growth.
In a new submission to the Productivity Commission , the Australian Medical Association warns of a health system under significant pressure due to preventable hospitalisations and chronic disease.
AMA President Dr Danielle McMullen called for a paradigm shift in how governments approach healthcare.
"Governments continue to view healthcare as a cost to be managed, rather than an investment to be made in Australia's future — and this mentality is hurting our economy," Dr McMullen said.
"While life expectancy remains high, Australians are also spending more years in poor health — limiting their ability to participate in the workforce and in the community."
More than 780,000 Australian workers are now aged 65 and over, compared with 416,000 ten years ago. Keeping people healthy for longer is essential to being able to maintain this workforce.
"Addressing this challenge requires governments to invest in prevention, early intervention and better chronic disease management," Dr McMullen said.
Global evidence shows healthy people are more likely to participate in the workforce for longer, contribute to society, spend into the economy and require less expensive care.
The AMA's submission supports the Productivity Commission's recommendation to establish a National Prevention Investment Framework, which would act as an evidence-based funding mechanism for preventive health programs.
Australia spends 2.3 per cent of total health funding on prevention — well below Organisation for Economic Co-operation and Development averages. The AMA has long called for this to increase to 5 per cent by 2030.
"Governments must look beyond three or four-year election cycles and commit to long-term preventive health funding," Dr McMullen said
"Implementing a tax on sugar-sweetened beverages is one measure the federal government could use to raise much-needed funds for other preventive health measures.
"We are also calling for greater investment in general practice to support longer consultations, allowing GPs to spend more time with patients to manage increasingly complex chronic health conditions. This would help reduce hospitalisations and keep Australians healthier for longer.
"It would also help boost the uptake of critical government-supported cancer screening programs."
