Healthcare Performance of Australia compared to OECD countries

Running Head: HEALTH SERVICES FINANCING
HEALTH SERVICES FINANCING
Name of the Student
Name of the University
Author Note

1HEALTH SERVICE FINANCING
Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................2
Healthcare Performance of Australia compared to OECD countries.....................................2
Challenges Faced by Healthcare System in Proving Equitable Access.................................4
PBS Cost Effectiveness in Australia......................................................................................5
Comparing PBS to Cost Effectiveness of Pharmaceuticals Schemes used in Other
Countries................................................................................................................................6
Recommendations to Improve Australian Healthcare System...............................................7
Conclusion..................................................................................................................................8
Reference....................................................................................................................................9

2HEALTH SERVICE FINANCING
Introduction
Healthcare financing is core components of the health care systems. It deals with. the
generation, allocation as well as uses of financial resources in health care system. The
healthcare financing ensures that sufficient resources are generated for sustaining services
and meeting health needs of overall population. Most of the reforms of health sector
measures attempt for addressing issues of health financing such as funds mobilization,
services allocation and utilization and provider of payment incentives. Each country requires
government funding of the healthcare for the country’s population. The financing of
healthcare not only involves funds allocation, but also involves allocation of those funds. The
national health expenditure is derived from the government and the non-government sources
(Duckett & Willcox, 2015).
Hence, this report aims to discuss comparison and contrast of performance of
Australian healthcare system in comparison with other two OECD member countries from
financial perspective. Further, performance measures will be identified in which healthcare
system of Australia is performing. Moreover, cost effectiveness of PBS in Australia will be
evaluated. In addition, comparison of PBS will be done with the cost effectiveness of
pharmaceutical used in the other countries. Lastly, based on findings, recommendations will
be given for reducing cost and lowering pharmaceuticals consumptions in Australia.
Discussion
Healthcare Performance of Australia compared to OECD countries
According to OECD, the Australian healthcare system is considered to be best.
However, with the changes in the needs of healthcare, for instance complex health conditions,
increase in demand, increase in healthcare cost and other issues, Australian healthcare system
has come under intense pressure. Although, care within the healthcare system of Australia is

3HEALTH SERVICE FINANCING
best in world, but there is need for changing current paradigm used for measuring results as
well as allocating the resources. It is dealing with the two major issues, which are allocation
of resources and outcomes improvements of performance and patients. The healthcare system
of Australia not only faces the workforce shortages and inefficacies, but there are
expectations of the greater public reporting of the availability of required services, clinical
indicators and patient reported outcomes for ensuring informed making of decision by the
patients (Westbrook et al. 2015). Australia is having public system that is complemented by
the private health insurance. The public accesses care of Australia within public health
system is for free or at the low cost through Medicare that is funded by tax. The private
system includes providers of health service, which are privately owned and managed
pharmacies, private hospital and specialist medical and allied health (health.gov.au. 2020).
In comparison to Australia, OECD member country UK is having government-
sponsored universal system of healthcare that is known to be National Health Services. It is
consisting of series of the publicly funded system of healthcare in UK. Under this system,
citizens are entitled to the healthcare, but they are having option for buying private health
insurance also. The UK system of health care is most efficient in world. The report of
Commonwealth Fund looked at five performance areas, which are efficiency, quality, healthy
lives, equity and access to care. The healthcare of UK is entirely part of government budget
and is actually government part. The portion of taxes of the country, finances NHS entirely
(npr.org. 2020).
In Canada, provinces and territories are having primary responsibility to organize and
deliver health services and supervising the providers. As Australia and UK, most sum of
money that flows through the healthcare system of Canada come from the federal taxes.
Further, charitable contribution also plays major role to fund new programs of hospitals. In
terms of coverage, Canadian healthcare coverage is better than Australia because it is