Media Statement - 23rd August 2007
A Rudd Labor Government will undertake one of the most significant
reforms of Australia’s health and hospital system since Federation.
Federal Labor will establish a $2 billion National Health Reform Plan
over four years to improve Australia’s health system and ensure better
health services for patients in hospitals. Federal Labor’s National
Health Reform Plan will have two central elements:
1. $2 billion in investments to deliver improved health outcomes for patients in Australia’s health care and hospital system.
2. A commitment that a Rudd Labor Government will seek to take financial control of Australia’s 750 public hospitals if State and Territory Governments have not begun implementing an agreed National Health Reform Plan by mid-2009.
Australians are sick and tired of politicians passing the buck when
it comes to health care and hospitals. The Commonwealth blaming the
States and visa versa doesn’t help when you are sick. And it certainly
doesn’t make it easier to find a doctor, an aged care bed, a specialist
or reduce hospital waiting lists.
To end the blame game, I announce today that as Prime Minister I will
take responsibility for improving Australia’s health and hospital
system. When it comes to improving Australia’s health system, as Prime
Minister, the buck will stop with me. I am determined to improve health
and hospitals right across our nation – not just in marginal
electorates.
$2 Billion National Health Reform Plan
Within the first 100 days of the election, a Rudd Labor Government -
through COAG - will establish a National Health and Hospitals Reform
Commission to develop Federal Labor’s National Health Reform Plan.
To ensure Australians get better service when they use Australia’s
health system, Federal Labor’s $2 billion National Health Reform Plan
will do three things:
Second, a Rudd Labor Government will provide financial incentive payments to State and Territory governments who deliver better outcomes for patients using their health and hospital system.
Under Labor’s Plan, in order to access funds, the States will be required to sign up to achieving specified health outcomes, such as:
- Reducing avoidable hospitalisations and readmissions to hospital;
- Reducing non-urgent accident and emergency presentations;
- Reducing waiting times for those people who require essential hospital services such as elective surgery; and
- Providing more appropriate non-acute care for older Australians.
These payments will serve as an incentive for State and Territory Governments to engage in this National Health Reform Plan.
Third, given the importance of preventative health care in reducing
pressure on our hospital system, a Rudd Labor Government will make
available dedicated funds for investing in community-level non-hospital
health services.
Commonwealth Takeover of Public Hospitals
If by mid-2009 the Commonwealth and the States and Territories have not
begun implementing the National Health Reform Plan, a proposition for
the Commonwealth to assume full funding responsibility will be
developed and put to the Australian people.
Should the Australian people agree to a Commonwealth takeover of
hospital funding, a model would be devised to ensure the future of
State, private and community managed hospitals.
Under a Commonwealth financing model, regional and local communities
would directly participate in the management of public hospitals. But
ultimately responsibility for the quality of patient care will lie with
Canberra.
The State of Australia’s Health and Hospital System
Australia’s health and hospital system accounts for total annual
expenditure of $90 billion from both public and private sources.
Commonwealth expenditure at $42 billion represents about 45 per cent of
these outlays.
More than $20 billion per year is spent on Australia’s 750 public
hospitals and a further 500 private hospitals receive funding support
from private health contributions totalling $3 billion. Each year about
4.5 million Australians are admitted to public hospitals and 4.8
million visit a hospital emergency department.
But our health system is at a crossroads. It is ill-equipped to deal
with the longer term pressures of an ageing population, the increasing
cost of pharmaceutical and new technology and the rise of chronic
disease in our community. These factors will see Commonwealth health
spending as a proportion of GDP, rise from 3.8 per cent in 2006-07 to
7.3 per cent in 2046-47.
Over this timeframe population ageing is expected to contribute just
under one percent to increased spending as a proportion of GDP. The
cost of pharmaceuticals as a proportion of GDP is expected to triple
from 0.7 percent in 2005-06 to 2.5 percent in 2046-47.
Chronic diseases already account for almost $34 billion, and nearly 70
per cent of allocated health expenditure. Left unchecked, this figure
is expected to increase to 80 percent of allocated health expenditure
by 2020.
A further source of pressure on our health system comes from the way in
which health and hospital services are funded. In a report for the
Business Council of Australia, Access Economics estimated that cost
shifting duplication and other inefficiencies in the Commonwealth State
funding arrangements cost some $9 billion per year.
Unfortunately, the Commonwealth Government has failed to adopt reforms
which seek to shift agreement making and funding from a focus on inputs
to the achievements of better health outcomes for the Australian
people.
It has wasted 11 years when it comes to the provision of health care in
Australia. Federal Labor’s health reform agenda will be underpinned by
a commitment to maintain or improve access to pharmaceuticals, Medicare
and private health insurance.
NOTE: The plan is available as a PDF under 'downloads' on this page.