Australian health system an example for Canada
Australia’s universal health care system outperforms Canada across many measures of access and outcomes, and offers important lessons for Canada on health policy reform, according to a new report from the Fraser Institute.
The study, entitled “Health Care Lessons from Australia,” states that government health spending in Canada is among the highest in the developed world, yet Canadians endure some of the longest waits for medical treatment. The study recommends that Canada follow Australia’s lead on cost-sharing, activity-based funding, and private-sector involvement.
In comparing Canadian and Australian health care, the report notes that Canadian government health expenditures (age-adjusted) were 26% higher than Australia’s in 2009, and Canada’s health spending as a share of GDP was the highest among all developed nations with universal health care.
Australia’s health policy framework differs from Canada’s in the following ways:
• Cost sharing for outpatient medical services.
• Some private provision of hospital and surgical services.
• Activity-based funding for hospital care.
• Broad private/parallel health care sector with taxpayer support and dual practice.
The study authors feel that emulating the Australian health care system would not require a marked departure from the current tax-funded, provincially managed, federally supported health care system in Canada. Taking an Australian approach would primarily require changes to financial flows within provincial tax-funded systems, a greater reliance on competition and private ownership, and public support for private insurance and care.
Australia’s superior health care performance is in part the result of a vibrant private parallel health care sector. The private sector in Australia plays a large role in both financing and delivering health care, specifically elective surgery.
Australia also allows physicians to work in both the public and private health care sectors rather than requiring them to opt out of the universal system. This has the benefit of making more efficient use of highly skilled medical resources.
The report can be viewed at www.fraserinstitute.org/research-news/display.aspx?id=19380.