Productivity Commission Supports Calls for Reform

NAT

The Productivity Commission has called for a major review of Australia’s health system, saying it is ‘beset with structural problems’, and requires ‘nationally co-ordinated action’, but has warned against embracing a USA-style health system.

Commission chairman Gary Banks said a review of the whole system was needed to provide ‘a roadmap for reform’.

Possible changes discussed in the report include a Commonwealth takeover of public hospitals, with states assuming more responsibility for health services, and the introduction of ‘managed competition’ to health-care services.

But while the report suggests health care could yield considerable savings, Mr Banks warned changes should not echo the privatised health system in the USA.

‘[That is] not a system that commends itself to any one else,’ Mr Banks told ABC Radio.

The report has called on the Council of Australian Governments to begin an independent, public review of the entire health system as a first step in developing integrated reforms to address federal- state financing; the coordination of care, including aged care; and the interaction of private and public services.

Industry stakeholders, including the Australian Health Care Reform Alliance and the Australian Healthcare Association (AHA) have welcomed the report.

AHA executive director, Ms Prue Power, said: ‘This will be welcomed by health stakeholders who recognise the current structure has resulted in a fragmented health system with inherent inefficiencies and barriers to the provision of high quality, coordinated and integrated care.’

‘If we want Australia to have the best possible health system, we need to change the way in which we currently fund and deliver health services.

‘The Australian community deserves better than a health system that costs more every year and fails to deliver equitable access to high quality care.’

Shadow Minister for Health, Julia Gillard, said the report highlighted the failure of the Howard Government to address long overdue health care reform.

Ms Gillard said Labor had put the issues forward for consideration more than 12 months ago, calling for the establishment of a national health reform commission to drive the implementation of long-term fundamental reform of Australia’s health system.

– with Sydney Morning Herald

Copyright Australian Nursing Federation Dec 2004/Jan 2005