Read supporting evidence
- The health care system is vital to a productive economy and high living standards.
- But the health system needs to be modernised, and redesigned to more efficiently deliver services, greater value, and reduce waste and inefficiency.
- Health spending accounts for about 15 per cent of total Commonwealth direct spending, and about 25 per cent of total state spending.
- The Productivity Commission estimates there could be potential cumulative gains of at least $140 billion over 20 years (in 2016 dollars) by:
- focusing health care on consumers
- being transparent and using data better
- restructuring incentives to deliver better quality outcomes, including increased competition and contestability, and
- Increasing greater use of technologies.
- Detailed analysis by the Productivity Commission estimates the efficiency gap between the average and most efficient acute-care hospitals was likely in the order of 10 per cent.
- These variations consist of avoidable costs such as keeping people in hospital too long, or overpaying for supplies.
- The Australian Commission on Safety and Quality in Health Care estimates that preventable adverse events in Australia add between 6 and 10 per cent to costs of the system.
- The system is no longer fit for purpose and remains wedded to acute and episodic treatment.
- Australia is witnessing increased rates of chronic and age-related conditions.
- The number of Australians aged 65 and over is projected to double by 2055.
- The Grattan Institute estimates over $1 billion a year is spent on potentially avoidable hospital admissions for chronic disease.
- According to labour force data, around 2.5 million working Australians will have an experience of mental illness in the next 12 months.
- The wellbeing, productivity and participation of these Australians can be enhanced through workplace practices.
- Business is a big part of an effective approach to mental health.
- The benefits of a mentally healthy workplace mean employees are more committed to their organisation and retention levels are higher.
- In 2012 the University of NSW and the Black Dog Institute assessed the economic and business case for ensuring mentally healthy workplaces for the Mentally Healthy Workplaces Alliance.
- They found the cost of mental health was $10.9 billion a year including $6.1 for presenteeism, $4.7 billion for absenteeism, and $145.9 million in compensation claims.
- Untreated, depression translates into over six million working days lost a year and 12 million days of reduced productivity each year.
- They also found that for every dollar invested in mental health initiatives there was an average return on investment of $2.30.
- Australia has one of the lowest rates of employment participation by people with lived experience of mental illness in the OECD.