Post Budget Health Shake up – what does it all mean?

In the wake of this Labor government’s budget, health analysts were always going to have their work cut out. My overall impression is that no one is quite sure how to summarize the health budget, except by noting that it is redirecting funds back towards the public system. Even then, it is hard to know what impact this will have on our health system.

Undoubtedly, some will drop their private health insurance. The majority of these will be young adults. So the impact on the public system should be negligible, as demonstrated by no increase in surgery waiting lists. Indeed, when the private healthcare rebate was introduced there was apparently no decrease in waiting lists to begin with.

The other ‘big announcement’ was an extra $10b for infrastructure. The shift in funding towards the public sector must be welcomed by anyone that works there. Upgrading of infrastructure is always needed. No one will argue with this. Another question from some is whether this measure signifies a general attack on the concept of private health care.

No country has a perfect system. Australia seems to balance the rigidity of the UK or France with America’s high in-equality, lucrative private system. We are in a good place but cannot guarantee we will stay here or that our system can be further improved by moving one direction or another.

A discussion about the benefits of private vs public within our regulatory framework and economic and sociodemographic constraints is not possible here. One little mentioned point, however, is that the flexibility of a private market seems a necessity for progress in our rapidly changing world. This does not negate the concept that universal health cover is essential.

My greatest disappointment is that the health budget debate in the media has narrowed its interests to Alcopops and the private health insurance rebate. There are far greater issues we must address – particularly those that affect our immediate future, such as the training of doctors and allied health staff. Half the proposals in the budget rely on a sustainable workforce, and that simply doesn’t exist now. Unless some gaps are plugged with great speed, we will witness blowouts with the potential to destabilize the system entirely.