Comparison Between Health Funding in the United States and Australia

This essay provides a comparison between health funding in the United States and Australia. It discusses the similarities and differences in healthcare funding systems, key health issues, and how both countries are addressing them. The essay also highlights the importance of funding in delivering quality healthcare services.

Title: Comparison Between Health Funding in the United States and Australia
22 October 2021
Contents
Page
Comparison Between Health Funding in the United States and Australia 3
Introduction 3
Health Funding in the USA 3
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Health Issues between USA and Australia 4
How USA and Australia is addressing the key health issues. 5
Health Funding in Australia 5
Health Funding in Australia Compared to the USA 6
Figure 1 7
Contrasts of Healthcare Funding in Australia and the USA 7
Conclusion 8
References 9
Appendix A (Concept Grid) 12
Appendix B (Search Strategy) 13
Appendix C (Student Checklist) 15
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Comparison Between Health Funding In The United States And Australia
Health is an important aspect of the lifetime of every person and every country. Health
systems can effectively meet all the health needs of their citizens by utilising some of the
available financial resources through health funding (Shrank et al., 2021). However, a lack of
facilitation of the health sectors in any social setup can lead to the downfall of other sectors, such
as the political and economic sectors (Shrank et al., 2021). Therefore, the financing factor is
fundamental in impacting health system effectiveness to improve accessibility and delivery of
primary care (Robertson et al., 2016). This funding provides the opportunity to improve the
delivery of quality care (Corvino et al., 2020). According to Shrank et al. (2021), health funding
also helps purchase, pool, and resource mobilisation in a healthcare facility. In Australia, health
financing is primarily through medicare, which permanent residents and all other citizens have
access to this program. In the USA, the program is through medicaid and medicare (AIHW,
2020). Therefore, governments should take the capability of funding their health systems. From
the research, this essay addresses the comparisons and the key health issues between the USA
and Australian healthcare funding systems that have many similarities in the health funding
process.
Health Funding in the USA
In the USA, the healthcare system is through self-provision (Papanicolas et al., 2018).
The organisation of this system allows citizens of the USA to become responsible for healthcare
costs when in need of healthcare services (Papanicolas et al., 2018). There is no universal
healthcare in the USA that can provide healthcare benefits at a lower cost or free of cost (Al
Dalbhi et al., 2019). However, Johnson and Walston (2020) argue that health insurance is
complex, surpassing $1,000 every month, non-affordable to most Americans. Therefore,
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improving equity, affordability, and accessibility to health services within the healthcare system
should focus. According to Shrank et al. (2021), the maximum utilisation of the medicaid
program provides the ultimate opportunity to boost health equity and improve coverage. Besides,
the healthcare coverage by the private third-party sectors is forty percent of resource funds for
the healthcare services, the public covers forty-eight percent, and the citizens cover the
remaining twelve percent (Behdarvand et al., 2019). It is also important to note that private
organisations cover USA citizens more than public financing when receiving healthcare-related
services (Johnson & Walston, 2020). USA spends about eighteen percent of their GDP in the
healthcare sector to provide better and effective healthcare facilities to its citizens (Johnson &
Walston, 2020). It spends about $9,403 healthcare per capita which was in the year 2014.
Therefore, it is essential to provide better healthcare to a citizen of the USA (Johnson & Walston,
2020). In this, funding for the healthcare system should be smooth and increasing to improve
quality and efficiency in delivering care and services (Clark et al., 2020). In recent, it has also
been analysed that due to the impact of the coronavirus, there is a need to increase the funding
sources, which requires a considerable burden on the healthcare system (Suter et al., 2017). Due
to the impact of coronavirus, a larger population suffers from various mental diseases and
requires extra care and support (Suter et al., 2017). To fight the healthcare burden, there is a need
to deliver quality care and support services to the healthcare professionals to deal with this
situation and provides positive outcomes (Suter et al., 2017).
Health Issues between USA and Australia
Some critical health issues like mental illness, overweight, and obesity are critical health
issues in the USA. It is due to less physical work, working in an intimate environment, and using
technology for longer (Panchal et al., 2020). These are significant illnesses that need to be
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reduced and require a large number of funds to deliver healthcare services for improvement
(Panchal et al., 2020). On the other hand, in Australia, there is hypertension, anxiety, and
depression is critical health issues. These are the critical health issues that impact the healthcare
setting within the country, along with reducing its impact through delivering good healthcare
services and promotion to be aware and take intervention to avoid such types of diseases
(Panchal et al., 2020). These are the critical health issues that should reduce to improve the
country's health (Panchal et al., 2020).
How USA and Australia is addressing the key health issues
The USA is effectively fighting against mental health and overweight and obesity. They
have organised many campaigns and healthcare treatment to make them aware and support
getting over through it (Seo et al., 2018). They have hired many healthcare professionals and
psychologists to provide support for better well-being (Sea et al., 2018). There is also much
intervention that has been applied to get over through such types of diseases (Seo et al., 2018).
Oppositely Australia has taken many initiatives to reduce the cases of hypertension, anxiety and
depression (Marrouche et al., 2018). They have also implemented some healthcare programs that
aim to aware Australians of the negative impact of these health issues and help reduce the
number of cases (Seo et al., 2018).
Health Funding in Australia
Most private organisations are engaged to determine the overall good health of
Australians (AIHW, 2020). According to Kerr and Hendrie (2018), the goal of the Australian
government is to ensure that equitable access to healthcare services is patient-based. The
government partners with the public and private sectors to get health funding (Kerr and Hendrie,
2018). About seventy-five percent of the total cost cover Medicare within private hospitals. In
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this case, the AIHW (2020) states that "the Australian health system is a hybrid system where
health care can be funded through either taxation or privately, with a regulated voluntary health
insurance system being a key aspect" (p.162). Taxation is essential because the government can
secure health products and services for its population (Behdarvand et al., 2019). In addition it
regulates the funding sources that require to get the goods and services within healthcare. There
is also a need to care about public providers and private providers.
Health Funding in Australia Compared to the USA
Despite the difference in the funding of the healthcare systems in both countries, they
tend to focus on similar governmental programs. According to Robertson et al. (2016), every
citizen in Australia can access healthcare services through the medicare program. In addition,
both countries have a short process of drug approval which increases the accessibility to
treatment (Shrank et al., 2021). Moreover, Financing of health care in the USA and Australia is
done through public health insurance methods; All citizens can access most health services
(Papanicols & Behdarvand, 2019). Australia needs fewer funds in comparison to the USA, which
has a significant difference. In this, there are many differences in the healthcare system that can
offer extra care and services to the people of their country (Shrank et al., 2021). There is about
ten percent of GDP which costs in the healthcare of Australia. At the same time, about seventeen
percent of GDP are needed to support the healthcare system in the USA (Papanicolas et al.,
2018). Therefore, it is essential to offer better and effective healthcare service delivery based on
the size of funding (Behdarvand et al., 2019).
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Source: Kenneth & Stephen (2021)
With figure, they focus on the year 2018. In this, it is analyse that the Out of pocket
funding source is 18 percent in the Austrailia and in the USA. Moreover, the out of pocket is
counted only 10 percent. In the USA, its is evaluated upto the 40 percent. In addition to this, the
Australia public health factor and their funding was approcimate 60 percent and while taking the
comparison with the USA, it is analyse that the 49 percent. In this, the half of the price which is
based on USA is an public expenditure. Moreover, in Australia the 70 percent is usually paid by
the governing body. With all the evaluation, it is determined that the USA spend more approx.
twice as much capita when taking the comparison with Austalia.
Contrasts of Healthcare Funding in Australia and the USA
Australia and USA have a difference in health funding process depending on Gross
Domestic Product (GDP). According to Papanicolas et al. (2018), The Australian Government
spent ten percent of its GDP on healthcare purposes while the USA spent eighteen percent in
2016 (AIHW, 2020). The population ratio in the USA with insured individuals is ninety percent
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higher than that of Australia (AIHW, 2020). In 2017, the USA government covered eighty-five
percent of the health insurance (Papanicolas et al., 2018), Australia covered sixty-eight percent
of the health insurance (AIHW, 2020). Besides, between the years 2011 and 2012, the USA
spends nine percent and eight percent on private and public healthcare (Johnson & Walston,
2020). However, Australia's expenditures in the same year were approximately three percent and
six percent, respectively, indicating that the USA has been highly funding health systems
compared to Australia (Kerr and Hendrie, 2018). Funding for Australia and the USA has some
familiar funding sources, including taxation, collected through getting tax from their citizens.
Conclusion
Health is the most fundamental factor that every country intends to improve. However,
health funding can differ and also be similar from country to country. For example, USA spends
much of its GDP on healthcare systems compared to Australia; Australia has a better healthcare
system. Therefore, it is essential to follow the healthcare system by providing funding to deliver
better citizens' healthcare. Lastly, medicare programs bring the similarity of health funding of
Australia and the USA. This essay provided information about variation between key health
issues and healthcare systems funding related to Australia and the USA.
(Word Count: 1,649)
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References
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Difficulties in conducting clinical research among healthcare practitioners in Saudi
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(Australia’s Health Series No. 17, Cat. No. AUS 231).
https://www.aihw.gov.au/getmedia/be95235d-fd4d-4824-9ade-34b7491dd66f/aihw-aus-
231.pdf.aspx?inline=true
Behdarvand, B., Karanges, E. A., & Bero, L. (2019). Pharmaceutical industry funding of events
for healthcare professionals on non-vitamin K oral anticoagulants in Australia: An
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Johnson, K. L., & Walston, S. L. (2020). Healthcare in the United States: Clinical, financial, and
operational dimensions (1st ed.). Health Administration Press
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Appendix A Concept Grid
Concept 1
Funding in Health
Concept 2
Compare
Concept 3
Contrast
Funding to Australian Healthcare
Funding of USA
Financing to healthcare system
Contrast in healthcare funding in
Australia and USA.
Health capitalisation to improve
healthcare system
Similarities
Compare
Relate
Collate
Compare
Differentiate
Contrast
Variation
Distinguish
Contrast
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Appendix B Search Strategy
Databases
searched
Search strategy and search terms Results
Medline
(OVID)
Key Word Search
#1 “Funding of USA” OR “Funding to Australian
healthcare” OR “Financing to healthcare system” OR
“Health capitalisation to improve healthcare system”
MeSH Search:
#2 Comparison* OR correspondence OR relate
#3 Variance OR disparity OR variation OR distinguish
#4 Australia OR United States
#1 AND
The search included all the available journal articles 3,021
Limiters:
 Scholar journals
 Year range: 2016-2021
 Language: English
263
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Google
Scholar
#1 “Funding to Australian healthcare” OR “Funding of
USA” OR “Financing to healthcare system” OR “Health
capitalisation to improve healthcare system”
#2 Comparison* OR similarities OR relate OR collate
#3 differentiate OR Contrast OR variation OR distinguish
#4 Australia* OR United States*
#1 AND #2 AND #3 AND #4
11,250
Limiters:
 Scholarly Journals
 year range: 2016-2021
 Language: English
4120
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Appendix C Student Checklist
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