Healthcare: A wide-angled view CHF Australia Policy Forum, 12 November 2019 Michael Brennan, Chair
The price of things = hours of work to buy 1901 2000 Rent (3 bedroom) 14.6 10.7 Women’s shoes 16.3 2.8 Concert 8.4 1.7 Beer (1 carton) 7.8 1.2 Rump steak (1kg) 1.6 0.5 Milk (1 litre) 0.34 0.06 Antibiotics 0.4 Health 2
Health prices broadly reflect incomes (and a bit of policy) Health 3
Health prices outpace other prices Index (Sep 1980=100) 1000 1200 200 400 600 800 0 Sep-1980 Sep-1983 Sep-1986 Sep-1989 Sep-1992 Sep-1995 Sep-1998 Sep-2001 Sep-2004 hospital services Medical and Sep-2007 Motor vehicles Sep-2010 Sep-2013 Health CPI Sep-2016 4 Sep-2019
Health spending has risen in significance, 1971-2018 10 2018 9.3% 9 Health spending to GDP (%) 8 7 6 5 4.5% 1971 4 1971 1974 1977 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 2013 2016 Health 5
Years at birth Life expectancy – a 20 th century success story, 1881-2017 40 50 60 70 80 90 1881–1890 1920–1922 1953–1955 1970–1972 1985–1987 1994–1996 females 1997–1999 males 2000–2002 2003–2005 2006–2008 2009–2011 Health 2012–2014 6 2015–2017
Years 60 62 64 66 68 70 72 74 76 Healthy life expectancy is good too Turkey Latvia Hungary Mexico Estonia Slovakia Poland 68.5 US US Czechia Chile Slovenia Belgium Germany Finland Denmark UK Greece 2016 Portugal Ireland Netherlands Austria Sweden Luxembourg New Zealand Israel AUS Australia 73 Iceland Norway South Korea Canada Health Italy France Switzerland Spain 7 Japan
High life expectancy for $ spent 86 Japan Life expectancy at birth (years) 84 Switzerland AUS Luxembourg 82 Germany 80 US 78 Turkey 76 Latvia 74 0 5 10 15 Health as a share of GDP (%) Health 8
Good value for money Difference between actual life expectancy and life expectancy given spending per capita Iceland 1.4 0.9 Australia 0.5 -0.1 Switzerland -0.2 -0.2 United Kingdom -0.2 -0.3 Belgium -0.6 -0.6 Netherlands -0.9 -1.0 Norway -1.1 -1.2 Germany -1.3 -1.5 United States -6.0 -7 -6 -5 -4 -3 -2 -1 0 1 2 Additional life years Health 9
Australia has a high volume model Health 10
Health care usage is climbing 140 Hospital separations 130 GP services Index (100 = 2009) 120 110 Population 100 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Financial year ended Health 11
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