Australian Health Insights Report

Australian Health Initiatives and impact

The Commonwealth Fund Report 2024 has ranked Australia as 1st in providing the best health outcomes.* The Australian health system coverage is safe, affordable and high quality therapies for all Australians. Over the past 4 years, the country has led as the top ranked country providing the best equity care with the least income-related disparities in performance amongst the 9 other high income countries.  The areas needing improvement are in access to care and care process. Advances from changes in these domains are important determinants of health, productivity and economical outcomes.  1 2​ 3

The opportunities for sustainability continue ongoing in both private and public sector stimulation. Australia aims to improve local investments with an increase in Australian Securities Exchange (ASX) listed companies and non-listed since the fall from 213 (2023) to 163 (2025). Profitable productivity is in the commercialising of medical research, outsourcing care to private sector operations and mixed payment for health services. 3 4

*The countries with health systems compared in order of best ranking performance: Australia, Netherlands, United Kingdom, New Zealand, France, Sweden, Canada, Switzerland, Germany and the United States of America.

Industry Outlook

Healthcare is the largest sector of the Australian economy with the population employed. Health services are the 7th most profitable industry in 2023. The sector has grown since 1990, with 15% of all Australians in the healthcare and social assistance workforce (2024) increasing to an estimated future growth of 15% during the next 5 years. 5 6 7 8  

Hospitals, private nursing homes and medical clinics are making gross profits of at least 40% per annum. The aged service provider asset base grew by approximately 4% with number of employees increasing by 2.03% in 2021. Aged care providers reported a drop in median earnings with an (EBITDAR) profit margin from 3.2% (2020) to 2.1% (2021). Occupancy rates in residential care homes have declined to 87.6% (2023). 9 10 11

In 2022-2023, spending on health accounted for 10% percent of the gross domestic products (23.8 billion dollars).  The Australian companies listed on the stock exchange in January 2025, are making developments in technology, surgical devices, body composition analysing devices, medicinal cannabis, software, call systems, AI scanning, drug tests, medical imaging, digital GP clinics, clinical trial services, health insurance and pharmaceuticals (weight loss, antibodies, oncology medicines, vaccinations, protein consumables, antivirals and neurodevelopmental therapies). 12 13 14

Compared to Other Nations

Australia’s national healthcare quality has dropped from 6th (of 89 countries) in 2021 to 19th placement in mid 2024 (of 97 countries).  The Australian Healthcare Index Report describes the reasons for the survey rating resulted from changes in bulk billing causing more out of pocket costs with increased consultations to see General Practitioners, less access to Emergency Departments, longer waiting times and lowered quality of care from healthcare worker shortages. 15 16 17

Australia performed top-ranked in health system performance as reported in the Commonwealth Fund Report 2024 followed by the Netherlands, United Kingdom, New Zealand, France and Sweden. Overall performance was strongest in administrative efficiency, equity and health outcomes. The countries performing poorest in efficiency were socially influenced by illicit drug use effecting higher levels of crime, morbidity and mortality.  Substance abuse accounted for 14% of the total burden of disease in 2024.  For Australia, the areas needing most improvement are in access to care and the care processes. 1 18

Access to Care

Access to care focuses on making healthcare affordable and available for the national population. The Netherlands and Germany ranked better. The United Kingdom's health system offers the most affordable health services. Improvements in these nations have been achieved by prioritising effectiveness. Time-bound standardised pathways for diseases have reinforced quality care for conditions such as cancer, stroke, musculoskeletal disorders, metabolic, mental health and substance abuse. The Australian Government is nationally endorsing an increase in the advertising of standardised pathways to care (i.e. dental, cancer, elective and screening). It is also zoning areas for projects and services to help reduce geographical variations. 19 20

Since approximately half of Australians do not have private health insurance. To improve access in Australia, Medicare bulk billing incentives have been increased per consultation. They have expanded on the basis of veteran support, pensioner assistance, financial aid requirement and geographical location. These new initiatives help build better relationships during physician health assessments with specific measures against discrimination. Rapid access clinics have improved care for patients with ambulatory sensitive conditions (i.e. cancer, congestive heart failure, diabetes, hypertension, gastroenteritis and ulcers). Outpatient care offers thorough assessment to access referred services while sustaining telehealth consultations are essential in reducing costs. 19 20 21

Care Processes

The Commonwealth Fund Report 2024 identifies "prevention, safety, coordination, patient engagement, and sensitivity to patient preferences" as care processes. Countries ranked higher than Australia have made significant long term economical and financial commitments to care processes. Their policy changes have influenced financial programs and stimulated integration for health and social care.  1 19 20 22

The Netherlands leads in ranking with provision of care processes. They have optimised health services with a National Performance Framework. Specific performance measures and clinical indicators are targeted and monitored to make improvements. A Health Insurance Act was passed to align the public with primary care. Co-ordinations improved in orientating residents towards aged care homes, independent living, social services, housing and employment. In the United Kingdom, the Pay for Performance Programme (2004) has been based on immunisations, prevention screening, adherence to clinical guidelines, case management,  physician reminder systems, and disease registry systems.  The Netherland Public Health Service has implemented controlled market policies to improve efficiency with competitive contract based work for delivery of care processes. 22

New Zealand has improved care coordination with care bundled payments for chronic conditions such as diabetes, cardiovascular conditions and chronic obstructive pulmonary disease. 20

Norway has expanded in prevention of alcohol dependency by changing the alcohol percentage for sale (i.e. 4.7% by volume), enforcing no alcohol advertising and no happy hour. Alcohol dependency has reduced with alcohol consumption being 40% less than the European average (6.1 litres of pure alcohol per capita). The Australian Institute of Health and Welfare have assessed Australians having had an average of 10.5 litres of pure alcohol per capita (2023). 19 20 21 23

Australia's Practice Incentive Program (1998) focuses more on longer term aspects improving equity and access. General practices are encouraged to target aspects of indigenous health (i.e. avoiding blindness, mental illness, diabetes, cervical cancer and asthma), prescribing, immunisation, nursing, after-hours services and rural care. 24 25

Economic Investment into Health Promotion

Australia has the 12th largest economy. The economic growth of Australia is measured with Gross Domestic Product (GDP) per capita and Gross National Income (GNI) per capita. Australia’s GDP has been positive during the last few years while the GNI has decreased. 26 27 28 29 30 31

A higher GDP can lead to improved health of the national population, while better health outcomes increase the GDP.  With a healthier nation, there can be an increase in the proportion of population, participation, productivity of working people and purchasing. 32

Health spending drives approximately 10% of the GDP.  Access to a higher quality standard of healthcare, education, food and housing contributes towards greater knowledge, demand and financial status to furthermore improve health care services. 33 34​

The Australian Government commits to help increase and expand on healthcare ASX companies with the Medical Science Co-investment Plan (manufacturing), Medical  Revenue Commercialisation Initiative (research), Medicare Reforms (growth in healthcare stock) and the Medical Research Future Fund (health services companies). 34 35 36 37 38

As the Australian Government contributes a majority of budget from the gross national income to fund development of services, most of the changes between 2022 – 2063 are anticipated to resolve health budget pressures and function as a share of the GDP (amongst these are aged care, NDIS, interest payments and defence).  Another stress to the economy, ​drug abuse (tobacco, alcohol and illicit drugs) has been reported as an estimated 83.3 billion dollar cost. It is an approximate 2% economic cost of the GDP in Australia (2007). Illegal drugs entering Australia amounted to 0.4% towards GDP in 2010.  There is no further update reporting on these figures. 39 40 41

The Australian Medical Association is working with the Australian Government to provide solutions to reduce costs of healthcare and “make Australia the healthiest country in the world”. Investing in health will save Australia costs in wound care and prevent avoidable hospitalisations, reduce “hospital exit block”, improve care processes for total knee replacements, reduce chronic disease expenses related to sugar consumption and lower travel costs (by using telehealth).  40 42 43

Reference

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21. Kuo, J. C., De Silva, M., Diwakarla, C., & Yip, D. A. (2013). Rapid Access Clinic to improve delivery of ambulatory care to cancer patients. Asia-Pacific Journal of Clinical Oncology. 13(3), 179-184. doi: 10.1111/ajco.12641. https://pubmed.ncbi.nlm.nih.gov/28004512/

22. Nies, H., Stekelenburg, D., Minkman, M., & Huijsman, R. (2021). A Decade of Lessons Learned from Integration Strategies in the Netherlands’, International Journal of Integrated Care, 21(S2), p. 15. https://doi.org/10.5334/ijic.5703

23. Australian Government, Australian Institute of Health and Welfare. (2024). Alcohol available for consumption in Australia. Australian Government, Australian Institute of Health and Welfare. https://www.aihw.gov.au/reports/alcohol/alcohol-available-for-consumption-in-australia/contents/trends-in-alcohol-available-for-consumption

24. Slawomirksk, L. (2024). Pay-for-performance: the case for trying something different. Health Services Daily. https://www.healthservicesdaily.com.au/pay-for-performance-the-case-for-trying-something-different/13694#:~:text=P4p%20in%20Australia,and%20care%20in%20rural%20settings

25. Wright, M. (n.d.). Pay-for-performance programs. Do they improve the quality of primary care? The Royal Australian College of General Practitioners. https://www.racgp.org.au/getattachment/f5841c4f-8da5-442f-a742-5fc6af002875/Pay-for-performance-programs.aspx

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37. Australian Government, Department of Health and Aged Care. (n,d.). Medical Research Commercialisation initiative. Australian Government, Department of Health and Aged Care. https://www.health.gov.au/our-work/mrff-medical-research-commercialisation-initiative?language=e

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42. Australian Medical Association. (2023). "Hospital exit block’ costing health system billions. Australian Medical Association. https://www.ama.com.au/media/hospital-exit-block-costing-health-system-billions

43. Australian Medical Association. (2023). Health is the best investment: Shifting from a sickcare system to a healthcare system. Australian Medical Association. https://www.ama.com.au/sites/default/files/2023-06/Health-is-the-best-investment-shifting-from-a-sickcare-system-to-a-healthcares-system.pdf