HEALTH CARE SYSTEM IN AUSTRALIA

AUSTRALIAN AND PASIFIC STUDIES

Arranged By

Nadia Novernia Cristy Katuuk

SAM RATULANGI UNIVERSITY

ENGLISH DEPARTEMEN
 CHAPTER I
INTRODUCTION

Health care system is an essential component of a country. The three levels of healthcare
have its scope and benefits to the populace. The primary care is usually referred to as the first
point of contact to the health professional. This is basically because of the scope of practice at
this level. It is here we find the primary care physicians, family physicians or general practitioner.
At this level of service, the patients do not required referral to access services unlike the
secondary health care services that required their patient to have seen the primary physicians or
require a referral to be able to access the services of the hospital settings. Secondary health care
system is a specialist setting with few services unlike the primary care settings wide range of
services. Tertiary services are that which is involved in the specialist aspect such as intensive
care unit, neurosurgery or coronary care. It is usually with very few area of specialization.

Exploring these levels of healthcare, each has it benefits for the clients and population as a
whole. The multiple or wide range of services the primary health care offers is a plus for the
community as a whole. This is simply because of the cases that are commoner among the
citizens are those that could be properly and effectively managed at the primary level of
healthcare. And from this paper will discuss about health in Australia, the reasons for taking
health topics in Australia,is namely in a review of the handling of health services provided by
the Australian government.
 CHAPTER II
DISCUSSION

Health care system in Australia

The Australian Health Care Essay Assignment gives access to a wide range of medical
services to all the citizens it is funded through general taxes. The roles and responsibilities of
Australian health care system are divided between all levels of government along with a complex
interplay of private and public sectors. Its main components are public hospitals, medical
services and pharmaceuticals. The government provides subsidies to private hospitals for
providing a better treatment to the Australians. Private sector is also growing fast and becoming
strong. Australian health care system provides a better life expectancy as compared to other
countries. In Australia, both public and private sectors provide health care services, part of this
set up are both government and non-government hospitals, health facilties and agencies both
public and non-government and private medical practitioners. It provides better environmental
factors like clean water, employment and good nutrition to the citizens of Australia. Let’s take
few examples of other countries in this context.(Duckett,S,2004)

Funding model and its comparison with other countries

The Australian health care system is largely financed by general taxation. There is specific
income tax i.e. “the medicare levy “which comprises a small portion of the total funds. The
Australian government provides the maximum contribution in funding the Australian health care
system and that fund is known as “the common wealth”. The funding of health care system is a
big job and is done jointly by all levels of government. All the services of Australian health care
system are jointly funded by the federal government, state, territory and local government, health
insurers and individuals. It basically includes the income tax, the medicare levy, private health
insurance companies and individual payments. About 70% of the total expenses related to health
are done by the Australian government therefore it plays a dominating role in making policies
and taking major decisions. (Wade, V., Soar, J., & Gray,L,2014)
 According to a study conducted by Bloomberg, a U.S based Media Corporation,
Australia is the seventh most efficient health care system in the world and the same study shows
that USA ranks as low as fifty in the order of countries. The study is based on three criteria’s
which are (i) life expectancy (60%) (ii) Relative per capita cost of health care (30%) (iii)
Absolute per capita cost of health care (10%). Australia is among the top countries when it
comes to health care system. The life expectancy rate is 81.8 years in Australia.
(Donaldson,Gerard,Jan,Mitton,C.& Wiseman, V,2004)

The Economics Of Health

Health care is a major employer and driver of economic activity in Australia. As noted
above, not only does it account for 10.3% of GDP43, but it also accounts for 13% of
employment44 – a figure that is rising rapidly. There are also significant indirect economic
benefits of investment in health care, including increased labour productivity, higher educational
attainment, and reduced long-term healthcare and social security costs.45 For example, healthy
workers are more productive and spend less time on sick leave – Gallup found that in the US,
overweight or obese workers and those with chronic health conditions missed an estimated 450m
additional days of work a year compared with healthy workers, costing more than US$153
billion annually in lost productivity.46
EY and Osana47 identified ~$40 billion per annum of allocative efficiencies in the
Australian healthcare system, driven primarily by hospital avoidance and prevention through
more integrated care. Around $24.9 billion per annum in technical efficiencies could be achieved
primarily through reduction of waste and increased quality in hospitals, and reforms to the MBS
and the Pharmaceutical Benefits Scheme (PBS). However, the benefits of investment in health
care can take time to reap, and the division of responsibilities between federal and state
governments means that the government which invests may not necessarily receive all the
benefits of the investment. To capture the opportunity, it is critical for federal and state
governments to cooperate and engage in long-term planning.
Tax-Funded National insurance scheme - Medicare
In 1984, Medicare was introduced to provide free of cost treatment in public hospitals and
subsidies for medical services. The term Medicare basically means access to hospitals and
medical care. Medicare covers almost all Australians. Under the term Medicare, the state and
federal government provide funds to the public hospital services which are free for all the
citizens of Australia. While seeking admission in a public hospital, the patient can choose
between private and public health care treatment. For public patients medical treatment is
provided free of cost by the doctors decided by hospital however, private patients can make their
choice while selecting the doctor for treatment.Public patient is given full coverage for all the
treatments and private patient’s treatment and care are covered by private health insurance.
(Brooks,P,1999)

Shape up Australia - Preventive health care system in Australia

Preventive health care system was introduced in Australia to prevent, promote and protect
the population from various types of diseases rather than spending on treatment related to injury
or illness of the citizens. One of the preventive health care system in Australia is “Shape up
Australia”. This program was initiated by Australian National Preventive Health Agency for
solving the problem of overweight and obesity, which is growing at an alarming rate among the
young generation of Australia. “Shape up Australia” tries to encourage the young generation for
adopting a better and healthy life style across all levels of government and non-government
sectors. The initiative was taken because it is observed that an obese adults life expectancy
reduces by 2-4 years in comparison of normal adult. “Shape up Australia” helps people to
maintain themselves and stay healthy by motivating them with information and sharing the
positive features of a fit and healthy body
 CHAPTER III
CONCLUSION

Australia’s quality health system is already delivering excellent outcomes for Australians.
Like all national systems, it continuously needs to be improved and modifed to ensure that it
delivers the best, most up-to-date health care, to meet today’s health challenges. The Australian
Government is taking the action needed to achieve this. Our Long Term National Health Plan
will provide accelerating benefts as we continue to roll it out and expand it. Australians will not
only have access to the latest, high-quality medicines and cutting-edge treatments, made
affordable by Medicare and the PBS.
The Australian health care system promotes, restores and maintain the health of its citizens.
It is the most affordable, effective, efficient and accessible health care systems in the world this
system is one of the best health care systems. At present Australia has a combination of an aging
population, escalatory health cost and increasing chronic diseases, this combination is the current
challenge for the Australian health care system. Its goal is to make a balance between public and
private health services to provide a free or low cost access for all the citizens of Australia despite
of their economic status.
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