Modernising Australia’s health system is crucial for improving efficiency and addressing the challenges posed by an ageing population, according to a recent report by the Business Council of Australia (BCA). The organization released its “Supporting A Healthy and Productive Nation” blueprint on October 16, 2023, highlighting the need for urgent digital reform, including investments in technology and artificial intelligence (AI).
The report underscores the potential costs of inaction, projecting that health expenditure could exceed 10 percent of the nation’s GDP by the latter half of the century. Rohan Mead, the chief executive of Australian Unity and a member of the BCA’s health committee, emphasized the necessity of revamping existing systems. He noted that the current healthcare model, rooted in historical practices from the time of Florence Nightingale, is inadequate for modern needs.
“Our health system is still based on a model from the era of Florence Nightingale, and we need to look at how technological changes and new models of care can provide better outcomes and make Australians even healthier,” Mead stated. He pointed out that in 2025, many hospitals will still rely heavily on paper-based systems, with up to 75 percent of global fax traffic originating from medical services.
Mead stressed that “it is time the health and care system came into the modern era.” He believes that enhancing productivity and innovation in healthcare will benefit future generations as well as improve the nation’s overall health now. Alarmingly, the BCA report highlights the rising demand on the health system, with projections indicating that the number of Australians turning 80 each year will increase to 60,000 over the next two decades, a significant rise from 20,000 in the previous 20 years.
The report also addresses the impending shortage of healthcare professionals, forecasting a deficit of nearly 80,000 nurses by 2035. This shortage is compounded by a decreasing ratio of working-aged Australians contributing taxes for each retiree. The findings reveal that the current system is insufficient, with more Australians facing out-of-pocket expenses for health and care services.
Mead highlighted the potential benefits of AI, stating that it could free up as much as 30 percent of a clinician’s time. He also noted that telehealth initiatives have already saved Australians approximately $895 million annually in reduced travel costs. These advancements could significantly enhance accessibility and affordability of healthcare.
The aged care sector has seen substantial growth, with Australia’s expenditure on aged care ballooning to $36.4 billion, marking a remarkable 64 percent increase from 2017-2018 to 2023-2024.
The BCA’s recommendations call for a comprehensive national health and care strategy aimed at boosting efficiency and adapting to the evolving demographic landscape. As the pressures on the healthcare system escalate, the need for a digital transformation becomes increasingly apparent, ensuring that Australia is better equipped to meet the health challenges of the future.
