Australia Healthcare in Comparison to the United States

Dianne Montano

Channel Islands University

Fall 2019
Australia Healthcare

Australia Healthcare

The price of healthcare has increased seemingly over the years in industrialized countries,

causing many to either to postpone and even neglect their health. The United States and Australia

are the prime examples of industrialized countries that have experienced an increase in the price

of healthcare. It is not just money out of pocket for these countries but also their people and can

lead to putting many at risk. Reallocating finances and implementing different programs within

their healthcare system will make it more efficient and effective for these countries and their

people.

The United States is one of the most industrialized countries, yet unable to provide

universal healthcare. According to Stone (2017) “In 2015, the ​United States​ spent 17.8% of its

gross domestic product (GDP) on ​health​ care ($3.4 trillion). This level of spending is far more

than any other developed country… [and] projected healthcare spending to rise on average 5.6%

per year between 2016 and 2025 to 19.9% of the GDP by 2025 (Keehan et al., 2017).” Almost

20% of America’s profit goes into healthcare, and it is expected to increase within the upcoming

years yet it does not seem to show in the numbers. Currently, the United States places more

money into their healthcare than other countries, those in America have experienced poorer

health outcomes with the addition of increased health risk factors. Despite offering one of the

most expensive healthcare, the U.S. performance is lacking compared to other industrial

countries having low levels of access, efficiency, and equity.

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The United States healthcare has however tried to combat the growing problems within

its healthcare by proposing different bills and programs. Changing over the years while the

federal and state government that created had erratic decision making with noncohesive policies.

The Affordable Care Act also known as ACA was implemented on the 23rd of March in 2010

under President Obama that was made to partially reduce the number of uninsured Americans.

There were provisions that were meant for those with low income to obtain insurance and though

it was passed with good intentions many Americans did not benefit from the Affordable Care

Act and many of those who were in the middle class were placed under a higher financial

burden.

There would be an increase in the number of people who would receive insurance under

the ACA, Berdine (2015) claims that “as nine million are expected to lose employment-based

health insurance and another four million are expected to lose or forego private health

insurance.” Despite being advertised as giving everyone a chance at insurance for better

healthcare, it also gave more power to the government to control how money in healthcare is

spent. The Affordable Care Act was not a complete failure and did provide healthcare to those

who had low income and were not insured. It provided the help and support that they needed to

seek attention for their health and wellbeing.

Although there also needs to be an understanding of the extent of how organizational

values and other factors that can affect how patients are receiving service. According to Davis

(2013) “​The primary motivator for private-sector leadership is profit and, as might be expected,

such a focus can stimulate intended and unintended results, as well as foreseen and unforeseen

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consequences.” The main fault with the current United States healthcare system is that it focuses

primarily on money rather than the people they serve to care for. Those that represent a small

portion of the population that rake in the benefits of the profit that the healthcare system often

find themselves with an advantage. While those who are the majority, that have less wealth are

disadvantaged. The current healthcare policy is always changing under the guise of public

interest, but leaving many at risk. Davis (2013) continues with how “Cost accounting techniques

from industry can also be effective in reducing healthcare costs.” Target costing techniques can

offer new services at a price that will increase volume allowing hospitals and health care

providers to practice effective cost containment. With that information technology is a critical

element because it is meant to improve patient care and services while striving fot improved

organizational performance at a lower price.

Unlike the United States that ranks on the lower end compared to other industrialized

countries with their healthcare, Australia ranks near the top. The Commonwealth Fund found

that the United States overall health care system performance ranks 11, while Australia ranks

second. Australia offers a comprehensive healthcare system that provides a range of services

from general and preventative health, through hospital care to general and preventative health.

Australia's healthcare system is split into two major parts: the public healthcare system, and the

private healthcare system. This can be described as a hybrid healthcare system since people can

seek healthcare through either part or both at the same time. The public can access care through

the public healthcare system for low costs through Medicare which is funded through taxes. It

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offers public hospitals, community bases services, and health organizations largely governed by

territory governments.

The public can also access healthcare through the private healthcare system that offers

private hospitals, specialist medical and allied health and is typically privately owned hence the

name. According to Oliver Baxter (2017), ​ “At the heart of improving patient outcomes is the

need for assurances that the health care consumers receive is both safe and consistently of high

quality, regardless of who, where, when or how they access the healthcare system.” The main

goal of their healthcare is to provide effective and efficient healthcare while also having high

levels of quality. This allows them to provide efficient outcomes through a highly efficient care

process, and having one of the highest rankings when it comes to health care outcomes.

However, Australia, like all other countries whether it be industrialized or not, does not

have a perfect healthcare system. According to Lloyd 2010 found that “ under-resourcing of

Aboriginal health: inefficient funding arrangements, mainstream programs being inappropriate

for Aboriginal Australians, and competing interests determining the allocation of resources.” At

times it is difficult to find the optimal way to allocate resources that can improve health and

serves as an enormous challenge to policymakers and legislators.

There are different methods to improve healthcare and Oliver-Baxter (2017) found that

“indicators, including structure, process, outcome and balancing measures will need to be clearly

defined and incorporate both clinical and patient perspectives with the ability to measure cost

across the whole care continuum.” It is more than just money that influences how healthcare is

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given and received. Primary healthcare in Australia should be monitored carefully depending on

the type of different measurements of systems and their purpose. Australia’s healthcare system is

striving towards healthcare that is based on a value-based model. It also found itself finding ways

to reform by having health providers connect better by looking for different forms of general

practices. This is supported by Greenfield (2015) who stated that “Australia’s current health

reform initiatives have been guided by the National Health Reform Act 2011…[and] the aim is

to engender improved efficiency, performance, accountability and transparency.” Australia’s

healthcare organizations have to go through accreditation processes that go through

interpretation and assessment.

Australia, like other countries, has a healthcare system that undergoes evolutions through

different reforms. Transition periods for Australia to new accreditation processes has been

difficult for healthcare stakeholders. Greenfield (2013) states that “the acceptance and perceived

credibility of the new accreditation scheme and NSQHS Standards is, in part, reliant on

perceptions as to the reliability of survey processes and ... transition has highlighted a number of

challenges to survey reliability, some of which are new and comprehensive.” This shows that not

everything comes easy, especially for areas concerned with healthcare because it places many

things at stake like people’s lives and how they receive healthcare. Though Australia ranks at one

of the highest healthcare systems compared to other industrialized countries, there are rooms for

improvement.

Healthcare undergoes many changes over the years because there is no such thing as a

perfect healthcare. The United States and Australia are prime examples of industrialized

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countries that have room for improvement when it comes to healthcare. The United States shows

that no matter the price and money they put into healthcare, nothing will change unless there is a

change with the policies and where they focus the money and profits. The United States has

made moves toward a more accessible healthcare system, though it fell flat for most. There was a

change and there continues to be a change for different reforms that make healthcare more

effective and efficient for the public. Australia may rank at the tops, but not everything is perfect

and shows they have room for improvement especially with reallocating their resources and the

involvement of new policies. It is not a smooth process to switch between different policies but it

is worth it in the end if it means providing a better healthcare system for the public that is

reliable, efficient, effective, and overall accessible.

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References

Davis, Dena, Davis, Stanley, & Schmelzle, George. (2013). The Impact of Various Accounting

Approaches on U.S. Healthcare Reimbursement Systems: Ethical and Managerial

Implications. Journal of Management Policy and Practice, 123-136.

Gilbert Berdine. (2015). ACA and the Direction of U.S. Healthcare. Southwest Respiratory and

Critical Care Chronicles, 3(10), 35-38.

Greenfield, D., Debono, D., Hogden, A., Hinchcliff, R., Mumford, V., Pawsey, M., . . .

Braithwaite, J. (2015). Examining challenges to the reliability of health service accreditation

during a period of healthcare reform in Australia. Journal of Health Organization and

Management, 29(7), 912-924.

Lloyd, Jane E, BAppSc,M.P.H., PhD., & Wise, Marilyn J, BA,M.H.P., PhD. (2010). Efficient

funding: A path to improving aboriginal healthcare in australia?​Australian Health Review,

34​(4), 430-4.

Oliver-Baxter, J., Brown, Lynsey,B.Psych, GradDipSocSci(CounsStu, & Dawda, Paresh, MBBS,

DRCOG,D.F.R.S.H.F.R.C.G.P., F.R.A.C. (2017). Should the healthcare compass in

Australia point towards value-based primary healthcare? ​Australian Health Review, 41​(1),

98-103.

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Rodwell, J., & Gulyas, A. (2013). The variety of primary healthcare organizations in Australia: a

taxonomy. ​BMC Health Services Research​, ​13​(1).

Stone, P. (2017). Determining Value in the U.S. Healthcare System. Nursing Economics,

142-144.