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.