Australia Health System Trade-Off Between Efficiency and Equity (Essay Sample)

Australia Health System Trade-Off Between Efficiency and Equity Name Institution Course Professor Date Australia Health System Trade-Off Between Efficiency and Equity Millions of Australians use the healthcare system every day. A patient's involvement with the healthcare system may take many forms, including participation in a health promotion or disease prevention program (such as receiving a vaccine at school), seeing a primary care physician (PCP), picking up a prescription at the pharmacy, or even being taken to the hospital for surgery (Dixit & Sambasivan, 2018). The primary role of the healthcare system is to accommodate these differences in demand by guaranteeing that all people can afford treatment tailored to their needs. Service providers and other health professionals in Australia come from various institutions, including the federal government, state and territory governments, and the non-profit sector. They band together to provide for Australians' medical needs, both mental and physical. Australia's healthcare funding mechanisms are as intricate as the system itself. Government healthcare funding is supplemented by private organizations and individuals (Fund, 2017). Because of its complex structure, in which public and private partnerships fund and provide healthcare services, Australia's healthcare system is frequently a model for the rest of the world to follow (Dixit & Sambasivan, 2018). This essay examines Australia's healthcare system from the perspective of the trade-off between equality and efficiency, looking at its past, present, and prospective future. Understanding how Australia strikes a balance between ensuring everyone has access to healthcare and maximizing its limited resources may be gleaned through examining the system's historical growth, current structure, and prospective changes. Historical Development of the Australian Healthcare System The Australian healthcare system has changed drastically throughout the years. Individuals used to pay out of pocket for their treatment in the early 20th century, when the fee-for-service model predominated in the healthcare industry. Australia's public health was severely tested during the Spanish flu epidemic in about 1919 (Bongiorno, 2020). Department of Health estimates that 40% of Australia's 5 million inhabitants became sick, and 15,000 died due to the Spanish flu (Australian Government Department of Health and Aged Care, 2022). Roughly 100 years apart, these two pandemics significantly changed Australia's healthcare system. While we have yet to witness the full effects of the COVID-19 pandemic, this section summarizes the most significant changes to the healthcare system since the Spanish flu (AIHW, 2022). It addresses shifts in who is responsible for what in terms of managing and paying for the health care system, public health initiatives, medical policy, immunizations, and the evolution of medical treatment and technology such as intensive care units. This method created healthcare access gaps, especially for those with lower incomes. In 1984, the government of Australia implemented Medicare, a national healthcare program, to deal with this problem. Post-World War II Reforms Providing medical services mainly became the duty of individual states or private businesses after the Federation. Quarantine considerations (in terms of public health problems) relating to preventing illnesses from entering Australia were the only ones given to the Federal Parliament by the Australian Constitution (1901) (Sheehan, 2020). When the Spanish flu emerged in Australia, few medical options beyond primary nursing care could effectively combat the disease. Despite efforts to regulate travel between and within states, the pandemic reached every corner of the United States. A global wave of social changes following World War II also reached Australia. Deliberation about the role of the Australian government in health care continued in the decades after the Spanish flu epidemic (which happened during World War II). This period also saw the development of new health technology and treatments, including vaccinations. By amending the Constitution in 1946, voters in Australia granted their government new healthcare responsibilities, including the authority to legislate pharmaceutical, sickness, and hospital benefits, as well as the provision and funding of medical and dental services (Goddard, 2014). The Australian government passed the National Health Service Act in 1946 so all Australians could access healthcare easily. The foundations for a national healthcare system based on universality, fairness, and affordability were established by this Act. The National Health Act (Cth) was enacted in 1953 after a few more years had passed. The Australian government was given new responsibilities under this legislation, including distributing medical aid and vaccinations. People who passed a means test qualified for free care from honorary experts in public wards under this statute and the Medical Benefits Scheme (established in 1953) (Gale & Watson, 2007). At the same time, the Australian government began subsidizing healthcare services with non-profit volunteer health funds (Gale & Watson, 2007). In order to keep costs down, insurance companies were exempt from covering preexisting diseases, chronic illnesses, or extended hospital stays (Gale & Watson, 2007). According to Gale and Watson (2007), 83% of Australians joined a private pension or savings plan in 1953. Many of the rest were eligible for benefits due to retirement or military service (RACGP, 2008). Medibank, which gave Australians access to hospitals and other medical services at no cost and with no means of testing, was formed in 1975 but destroyed in 1978 (Gale & Watson, 2007). Medicare took its place that same year (1984). The Medicare program, implemented in 1984, was a game-changer for the healthcare sector in Australia. No Australian should be denied access to quality treatment because of their inability to pay for it, and Medicare was created with that goal in mind. It has replaced the former health insurance system based on voluntary participation and is now Australia's backbone of healthcare provision. One of Medicare's primary goals is guaranteeing all Australians access to affordable, high-quality healthcare. This includes lowering the cost of doctor's visits, specialist appointments, and hospital stays. Presently, Medicare subsidizes a significant proportion of prescription pharmaceuticals and backs the right of all Australians to have access to low- or no-cost health and hospital services. Medicare's MBS and PBS programs handle the logistics of these agreements. The Role of Private Health Insurance While public healthcare services, such as Medicare, constitute the backbone of Australia's healthcare system, private health insurance plays a vital role in supplementing these services. Elective operations, dental treatment, and alternative therapies are just some of the extras that may be covered by private health insurance. The Medicare Levy Surcharge and the Private Health Insurance Rebate are two ways the government encourages people to sign up for private health insurance. These efforts attempt to strike a balance between the public and private sectors by easing the burden on the public system and giving people more options and perks from the private sector. As a result of the introduction of a public health insurance program, many individuals stopped contributing to private health savings accounts (Gale & Watson, 2007); by the late 1990s, this figure had dropped to 31% (APRA, 2021). Consequently, several discounts and incentives were implemented to increase and sustain membership numbers. On average, almost 45% of Australians had PHI between 2000 and 2019 (APRA, 2021). Primary Health Care and Community Health Australia has invested much in primary healthcare and community health programs, realizing the value of preventative and community-based treatment. To better coordinate and integrate essential healthcare services at the community level, basic Health Networks (PHNs) were implemented in 2015. In order to expand people's opportunities to get medical treatment, PHNs collaborate with primary care physicians, allied health professionals, and community groups. Indigenous Health Over the last decade, the Australian government has made efforts to improve Indigenous Australians' access to healthcare. More Indigenous Australian women are receiving prenatal care in their first trimester of pregnancy, and the number of services offering primary health care to Indigenous Australians has increased (AIHW, n.d.-a). The financing systems for healthcare in Australia are as complex as the system itself. Private companies and individuals augment public healthcare spending (Fund, 2017). This agreement offers a framework for ensuring Aboriginal and Torres Strait Islander individuals have the same opportunities for success in life as the rest of Australia's citizens. A wide variety of health outcome metrics and associated variables are included in the National Agreement's 17 goals. In particular, NIAA 2020's outcomes focus on the following domains: education, employment, health and wellness, justice, security, housing, land and waterways, and languages (AIHW, n.d.-a). About a third (34 %) of the disparity in health status between Indigenous and non-Indigenous individuals may be attributed to socioeconomic variables such as job and hours worked, highest non-school degree, amount of education accomplished, and housing adequacy. Current Healthcare System The Australian healthcare system is an intricate web of public and private insurance and provision. Through federal and state taxes, Medicare ensures all Australians have financial access to in-hospital care and low-cost, out-of-hospital medical services (Dixit & Sambasivan, 2018). Patients enrolle...