Health discussion paper

The current mismatch between health system capability and population needs and the limited capacity to control health expenditure are major impediments to an efficient and sustainable health system. Incremental reform will not address these deep-seated problems - fundamental reform of health service planning, funding and delivery is needed now, to ensure the health needs of Australians can be met into the future. CCI’s report recommends: · Transferring full funding responsibility to the federal government - making the commonwealth the sole public funder of health, residential aged care and community support services. · Establishing regional fund-holders with responsibility for purchasing all health and support services for their community or population group. Greater competition between private, public and not for profit service providers to provide an incentive for entities to offer better value for money, improve the quality of services and better meet the needs of patients. · Better integration of service planning and delivery across health, community support and residential aged care sectors. · Greater investment in preventive health programs and a shift away from institution-based care to care in the community. Reform is urgently needed to reign in health spending which continues to grow at an alarming and unsustainable rate. National health expenditure is now 10 percent of GDP, having averaged more than five percent per annum real growth over the past decade. WA is the worst offender with predictions health could consume more than one third of the state budget by 2012-13. It seems no matter how much money is spent the system remains plagued by inefficiencies, duplication and inappropriate use of resources. CCI acknowledges the health of a majority of Australians is exceptional by global standards, although not everyone enjoys the same health outcome. Indigenous Australians in particular, remain significantly disadvantaged. It’s imperative that all levels of government embrace reform. CCI will be working to ensure health funding and other significant health related issues remain at the forefront of the policy agenda