AFG Venture Group Dispatches

Corporate advisory and consultancy in Australia, South East Asia and India.

CEDA report – ‘Healthcare: Reform or ration’

April 19th, 2013

CEDA – the Committee for Economic Development of Australia – is a national, independent, member-based organisation providing thought leadership and policy perspectives on the economic and social issues affecting Australia. CEDA recently released its policy perspective entitled ‘Healthcare: Reform or ration’ available here: http://www.ceda.com.au/media/302619/healthcarefinal1.pdf

The Executive Summary discusses increase in health expenditure linked to increased level of utilisation of healthcare services at all ages. It is this increasing utilisation of medical services that will have a larger influence over the financial sustainability of the healthcare sector than the ageing of the population.  AFG Venture Group notes that this is consistent with research findings from the US ‘The Facts on Medical-Care Spending Growth’ (http://econintersect.com/b2evolution/blog1.php/2013/03/11/the-facts-on-medical-care-spending-growth) that spending growth in the privately insured market is being driven by the number of treated enrollees as opposed to the cost of treatment … patterns of utilisation of medical services held spending growth in check.

And in regards to Chapter 6 of the CEDA report by the Chief Scientist, Professor Ian Chubb, “Why STEM skills are important for innovation” the discussion of issues and actions is consistent with recommendations made in the report undertaken by the Pharmaceutical Education Council (see: http://www.pharmacouncil.com.au/resources.php). Karen Dado project managed this work on behalf of the Steering Committee chaired by Professors Ric Day and Graham Macdonald. It would be good to see recommendations from both reports taken forward.