AHHA Recommends Evaluation of Recent Health Reforms

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The Australian Healthcare and Hospitals Association (AHHA), has recommended an evaluation of recent health reforms in its submission to the National Commission of Audit.

“The Australian health system is built on a solid foundation, with Medicare and a world class public healthcare and hospitals sector providing the basis for universal access to quality healthcare services, complemented by a strong and vibrant private health sector. However, increasing costs, demand pressures particularly in emergency departments and for elective surgery, workforce issues and uneven distribution of services are amongst the challenges facing Australia’s health system,” says AHHA Chief Executive, Alison Verhoeven.

“The Commonwealth Government must ensure that recent health reforms achieve their objectives and contribute to making the system financially sustainable.”

AHHA recommendations include:

• a review of the functions and performance of each of the new health agencies to address duplication and ensure that the value of taxpayer investment is maximised;

• a simplification of funding arrangements alongside a focus on performance accountability for Medicare Locals;

• health promotion and disease prevention must be resourced and evaluated effectively, irrespective of the agency which has responsibility for this function. Evidence-based promotion and prevention programs have the potential to significantly reduce disease and disability and contain costs;

• opening up options for non-government organisations to contribute to areas such as program evaluation, translation of research into an evidence base for health policy, and health prevention and promotion services;

• a broad review of Australia’s health insurance arrangements should be undertaken to find an equitable and fiscally sustainable way of operating Medicare alongside the private health insurance system. A focus on developing health care financing and payment methods that are better able to ensure patients receive seamless care in and out of hospital is needed. Bundled payments options for patients with chronic or complex conditions should be implemented as soon as possible;

• a disinvestment strategy should be developed to ensure the MBS and PBS programs are sustainable in the long-term. Simply expanding the MBS and PBS without a disinvestment strategy will ultimately prove to be unsustainable.

“While many positive reforms have been implemented in the health sector over the past several years, it is now time to evaluate the success or otherwise of the reforms and the many new health agencies and their programs to ensure that investment in the health sector is appropriately targeted, achieves better health outcomes for Australians, and is sustainable into the future,” says Alison Verhoeven