How Australian Healthcare ranks in the world (2021)

Last year, the Health Care Index released a list of the 89 countries that had the top-performing healthcare systems around the world, based on criteria like general quality of service, cost, infrastructure, employed healthcare professionals, medicine availability, and government readiness. Australia came in at the very impressive spot of ninth, meeting high standards despite facing a global health crisis.

After the successful rollout of vaccines to residents, and now that some states have met vaccination milestones, how does Australian healthcare now fare in the list?

Australia comes in at 6th out of 89 countries this year, showing a significant improvement when it comes to meeting the set criteria for healthcare, particularly government readiness, as seen in the vaccine production, procurement, and distribution. A lot of milestones have been met in some states, which could mean a better hope of reopening and going back to normal soon.

Improvements made to the Australian healthcare system

This year, the Australian government has allotted $98.3 billion to the healthcare budget for 2021-22. This accounts for 16.7% of the whole budget. The following are the specific numbers and percentages of the different sectors that benefitted from the budget:

• Medical services and benefits, comprised largely of Medicare and Private Health Insurance rebate expenses, will account for $37.6 billion, or 38.2% of total health expenses in 2021–22.
• Real spending is expected to increase by 3.4% from 2021–22 to 2024–25, with the largest driver of this increase being ongoing growth in the use of medical services listed on the Medicare Benefits Schedule (MBS). Expenses for private health insurance are expected to decrease in real terms over the period.
• Assistance to the states and territories, comprising the Australian Government’s contribution to public hospital funding, will account for $25.5 billion, or 25.9% of total health expenses in 2021–22 (excluding National Partnership payments).
• Real spending is expected to increase by 10.3% from 2020–21 to 2021–22, largely reflecting higher than anticipated growth in the volume of services, and then increase by 9.5% in real terms from 2021–22 to 2024–25.
• A breakdown of Commonwealth National Health Reform funding to each state and territory in 2019–20 and estimates for 2020–21 to 2024–25 can be found in Federal Financial Relations: Budget Paper No. 3: 2021–22 (pp. 19–21).
• Pharmaceutical benefits and services, comprised primarily of Australian Government subsidies for Pharmaceutical Benefits Scheme (PBS) medicines, will account for $15.2 billion, or 15.5% of total health spending in 2021–22. Expenses are expected to be relatively steady over the forward estimates.
• Health services, comprised of Australian Government expenses associated with the delivery of population health, medical research, mental health, blood and blood products, other allied health services and health infrastructure, will account for $13.7 billion, or 13.9% of total health funding in 2021–22. The sub-function also includes expenses associated with COVID-19 response measures.
• Expenses are expected to decrease by 33.0% in real terms between 2021–22 and 2024–25 due to the cessation of pandemic response measures.
• General administration, comprised of general administrative costs, investment in health workforce measures and support for rural health initiatives, will account for $4.2 billion, or 4.3% of total health funding in 2021–22.
• Due to COVID-19 response measures, expenses are expected to increase by 2.9% in real terms between 2020–21 and 2021–22, before decreasing by 25.0% between 2021–22 and 2024–25.
• Hospital services, comprised mainly of payments to the states and territories to deliver veterans’ hospital services, will account for $1.2 billion, or 1.2% of total health funding in 2021–22.
• Expenses are expected to decrease by 8.5% in real terms over the period 2021–22 to 2024–25, reflecting an expected reduction in the number of veterans requiring treatment and efficiencies achieved in the pricing arrangements.
• Aboriginal and Torres Strait Islander health, reflecting health portfolio Indigenous-specific services, will account for $980 million, or 1.0% of total health funding in 2021–22.
• Real expenses are expected to increase by 3.5% between 2021–22 and 2024–25, related to utilisation of the Indigenous Australians’ Health Program.

The improvements made to both Medicare and private healthcare systems have given more Australians access to quality health services this year despite the difficulties of lockdowns and major anxiety brought about by COVID-19.

Significant positive changes have also been seen in help lines and support lines for people struggling with mental health issues, and more innovations in healthcare have come about, like self-care mobile applications for volunteers and digital support for kids and teens.

References:

• https://ceoworld.biz/2021/04/27/revealed-countries-with-the-best-health-care-systems-2021/
• https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/rp/BudgetReview202122/HealthOverview
• https://www.health.gov.au/ministers/the-hon-greg-hunt-mp/media/budget-2021-22-generational-change-and-record-investment-in-the-health-of-australians
• https://www.aihw.gov.au/reports-data/health-welfare-overview/health-care-quality-performance/health-performance-overview

Nina Alvarez

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Nina Alvarez is a Content Producer for Healthcare Channel. Her interests include writing, particularly about the healthcare sector and the many ways it can improve to further benefit people from all walks of life.

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