Comparing the Healthcare System of Australia with the of U.S.A. and Switzerland

Australia is one of the leading countries with the best health system. The Australian government has established appropriate health policies and directives to promote quality healthcare services to all citizens both in the public and private facilities.

Running head: AUSTRALIAN HEALTHCARE SYSTEM 1
Comparing the Healthcare System of Australia with the of U.S.A. and Switzerland
Student’s Name
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AUSTRALIAN HEALTHCARE SYSTEM 2
Table of Contents
Comparing the Healthcare System of Australia with that of U.S.A. and Switzerland………..3
Executive Summary…………………………………………………………………………..3
Introduction…………………………………………………………………………………...3
Financial Structure of the Health System in Australia, United States and Switzerland……....3
The performances of the Healthcare System in Australian, United States and Switzerland….3
Why the Australian Healthcare System is performing Better…………………………………7
Financial Implications for the Healthcare System…………………………………………….7
Challenges faced while promoting Equal Access to Health Care…………………………….8
Recommendations for Improving the Australian Healthcare System………………………...9
Conclusion……………………………………………………………………………………9
References……………………………………………………………………………………11

AUSTRALIAN HEALTHCARE SYSTEM 3
Comparing the Healthcare System of Australia with the of U.S.A. and Switzerland
Executive Summary
Australia is one of the leading countries with the best health system. The Australian
government has established appropriate health policies and directives to promote quality
healthcare services to all citizens both in the public and private facilities. The member
countries of the Organization of Economic Co-Operation and Development (OECD) have
adopted closely related financial structures in their health systems but the differences arise
from the application of varying health policies. This essay provides comprehensive
information from the analysis of the comparison between the health system of Australia with
that of Switzerland and United States of America.
Introduction
The analysis of the health system of the OECD member countries is based on the
financial perspective. Appropriate demographic data are used in the analysis of the
differences and similarities between the financial structure of the Australian health system
with that of United States of America and Switzerland. Healthcare planning approaches
applied by the countries will be succinctly analysed based on the financial structures of the
selected countries. The Australian government should establish appropriate health policies to
maintain its financial structure and minimize fluctuations in the quality of healthcare services.
Financial Structure of the Health System in Australia, United States and Switzerland
Australia is a developed country that is classified among the six countries with the
quality health system in the world. The health system of Australia is comprised of both
private and public healthcare (Russell & Dawda, 2014). The mixed approach in the
Australian health system has resulted in a serious debate to determine the speculation on the
nature of spending by the private and public stakeholders in the health sector. The financial

AUSTRALIAN HEALTHCARE SYSTEM 4
structure of the Australian health system has been divided into three different groups based
on the level of government regulating the operations of the facilities. The levels are local,
state, and federal. In most cases, the main responsibility/function of the federal government is
to provide financial resources to the Australian health system. Currently, more than 70
percent of the health institutions in Australia are financed by the federal government
(Dickinson, Bismark, Phelps & Loh, 2016). Also, the federal government of Australia is
responsible for establishing appropriate health policies. On the other hand, the state and local
governments are involved in the implementation and adoption of the policies into practice in
the healthcare system.
On the financial perspective, the structure applied in Switzerland is different from the
mixed approach used in the Australian health system because the health care sector is
privatized. Privatization of the health system in Switzerland has forced people to look for
health insurance (Bakvis & Brown, 2010). Though the government of Switzerland does not
provide financial resources, it is important in framing appropriate policies that relate to health
insurance provided by the private institutions in the country (Nicholson, Jackson, Marley &
Wells, 2012). In this case, the Swiss government provides regulations that health insurers are
obligated to provide procedures for hospital stays, medications, doctor visits, physical
therapy, in-home care, and dental care.
The financial structure applied in the health system of United States of America is
different from the one adopted in Australia because people are responsible for their individual
health. The financial structure in United States of America is designed to ensure that all
hospitals and health centres provide quality services to their patients (Naccarella, Wraight &
Gorman, 2016). The financial structure is directed towards the private sector.

AUSTRALIAN HEALTHCARE SYSTEM 5
Fig. Comparison of Healthcare Expenditure among OECD Member Countries
Source: KFF Analysis of OECD data
The graph provided above shown the percentage of health expenditure of different
countries based on their GDPs. United States of America spends a lot in the healthcare sector
as compared to other members of OECD. According to Greenfield et al. (2016) personal
healthcare funding in United States of America is normally obtained from employment;
therefore, people purchase their desired health insurance through employers. The unemployed
people in United States of America do not enjoy quality healthcare services as compared to
the employed ones. The federal government of United States of America has introduced a
scheme to support the unemployed and elderly people (Sturmberg, O'Halloran & Martin,
2012).

AUSTRALIAN HEALTHCARE SYSTEM 6
The performances of the Healthcare System in Australian, United States and
Switzerland
The performance of the Australian healthcare system depends on the performances of
the three levels of government in the country. The federal government establishes effective
health policies that are then implemented and adopted by the state and local governments;
therefore, lack of good government affects the performances of the healthcare system in
Australia (Edmond & Vuille, 2013). The Australian federal government creates major
frameworks and allocates financial resources; therefore, determining the performances of the
healthcare system. One of the healthcare policies in Australia is Medicare which has been
introduced to promote equal access to healthcare services among all people in the country.
On the other hand, the healthcare system in Switzerland is oriented on the principle of
equality and universality among all people. The performances of the healthcare system in
Switzerland depend on the ability of people to purchase health insurance policies from
various private insurers. According to the reports from the World Health Organization and
World Bank, the health expenditure in Switzerland is ranked the second-highest globally
because 99.5 percent of its total citizens possess health insurance provided by the private
markets (Mor, Leone & Maresso, 2014). The performances of the American healthcare
system is low as compared to that of Australia Switzerland. The low performances of the
American healthcare system are contributed by factor like inequalities in access to health care
services in the public facilities. The inequalities in access to health care services resulting
from the American ideologies and racial discrimination. Capitalism ideology has made rich
people access quality health care services as compared to poor people. The federal
government has put more efforts to promote equality through the introduction of Medicaid
and Medicare services to cover for the needs of patients both in the private and public sectors.

AUSTRALIAN HEALTHCARE SYSTEM 7
Why the Australian Healthcare System is performing Better
The federal government of Australia and regulates different healthcare systems such
as medical services, private medical insurance, and pharmaceuticals (Parker, 2014). The
systems managed by the federal government also include the important regulatory and
funding responsibilities for subsidized services like those provided in the residential care
centres. The state governments in Australia are obligated for regulating and managing the
operations of all public hospitals and healthcare facilities that provide community-based
services. As compared to United States and Switzerland, the healthcare system of Australia
performs better because the federal government provides medical insurance especially to the
indigenous communities. The provision of Medicare services promotes equal access to
healthcare; therefore, promoting the health status of the low SES communities like the
Aboriginal and Torres Strait Islanders (Allen, Chiarella & Homer, 2010).
Financial Implications for the Healthcare System
The financial implications on the healthcare systems depend on the source of funding
and the amount of money given to support the programs in the country. The health policies
applied in a specific country also determine the nature of the financial implications of its
healthcare system. the Australian uses a lot of money to fund for the healthcare services
through Medicare policy because many people in the country are able to cover for their
medical bills in the facilities operating under private sector. The Australian system also uses a
lot of financial resources to fund healthcare services through the federal government rather
than using the state governments (Satchell et al., 2016). Funding through the state
governments is important because it promotes effective management of financial resources;
therefore, minimizing wastages in the healthcare system. The government of Switzerland
experiences minimum or no financial implication because the performances of its healthcare

AUSTRALIAN HEALTHCARE SYSTEM 8
system depend on the abilities of the people to purchase health insurance from the private
markets. The American healthcare system has a lot of financial implications because the
federal government provides medical covers for the poor and elderly through the introduction
of Medicaid and Medicare services.
Challenges faced while promoting Equal Access to Health Care
The Australian government has promoted equal access to health care services through
the introduction of Medicare services. The introduction of Medicare services in the
Australian healthcare system has made the health sector a universal component used by the
federal government to improve the lifestyles of the people and reduce mortality rates. The
government of Australia has faced a lot of challenges from the healthcare system. For
example, a lot of money is used to pay for Medicare services and other health policies. The
second financial challenge results from the ignorance of the population because the public
health status has been affected by preventable and lifestyle conditions like obesity and
diabetes mellitus.
Lastly, social factors like cultural practices have also undermined the Australian
government from promoting equality in the health sector, for example, the Aboriginal
communities do oppose the health policies introduced by the federal and state governments.
On the other hand, the healthcare system of Switzerland has also resulted in different
challenges to the government because the criteria used in identifying the needy and poor
people is not appropriate.

AUSTRALIAN HEALTHCARE SYSTEM 9
Fig. 2: The Barriers related to Cost of Healthcare Services in OECD members.
Source: KFF Analysis of OECD data
The chart provided above (Fig. 2) shows the percentage of people who experience
barriers that affect them from accessing quality health care services in different countries. A
critical analysis of the data provided in the chart provides a clear understanding that United
States of America faces a lot of challenges as compared to Australia.
Recommendations for Improving the Australian Healthcare System
According to reports from the World Health Organization and OECD, the healthcare
system of Australia is one of the best in the world (Fitzgerald, Bauer, Koch & King, 2011).
To improve the performances of the healthcare system in Australia, the federal government
should establish appropriate health policies in addition to the Medicare services to promote
equal access to healthcare in all private and public facilities. Also, the private and public
facilities should adopt similar operational culture to promote equality and patient’s
satisfaction.
Conclusion
In conclusion, the Australian government should establish appropriate health policies
to promote the performances of the healthcare system in the country. The health policies to be

AUSTRALIAN HEALTHCARE SYSTEM 10
applied in the Australian healthcare system should be used to determine the nature of the
financial implications in the country. Public health promotion is another approach that is
used to promote awareness among people; therefore, reducing the incidences and prevalence
of diseases and minimizes costs.

AUSTRALIAN HEALTHCARE SYSTEM 11
References
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Bakvis, H., & Brown, D. (2010). Policy coordination in federal systems: Comparing
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