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Participating Health Funds

Publication:    The Daily Telegraph
Date:    3 June 2009
Section:    Breaking News

Australia headed towards US user-pays health system

Sue Dunlevy | June 03, 2009 06:18am

Article excerpt:

AUSTRALIA is hurtling towards a US-style user-pays health system as Medicare costs begin to rise.

The Australian system of free universal healthcare is set to disappear in as little as five years, prompting a radical plan for a new federal-state partnership to take control of hospitals and patient care.

It comes amid a push by the Australian Medical Association for hospital specialists to treat patients only four days a week, potentially placing further pressure on a system already hamstrung by work restrictions among emergency physicians.

In a startling warning, New South Wales Health director-general Debora Piccone has told The Daily Telegraph that Australia is hurtling towards a US-style user-pays system due to an ageing population and out of control costs.

"We are really on the edge of losing the universal healthcare system that this country has," she said. "I would have (previously) said we'd had 10 years to run. It's now looking like we've got five years to run because the cost escalations are so significant and we haven't prepared ourselves."

Article summary:

Health Minister John Della Bosca said the government's proposed health overhaul would deliver "a single mandate" of patient care.

"We need a new governance model which takes the massive pool of funds available," he said. "We need to find a forum to co-ordinate that more effectively and you can only see that as some kind of joint commonwealth-state operation. I know the next step is right there and we've got to take it."

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