Economic Analysis and Evaluation of E-Health Strategies in NSW

This report critically evaluates the e-health strategies implemented by the NSW Ministry of Health, focusing on the economic consequences of digitalizing healthcare. It discusses the positive aspects of the strategies, such as improved access to medical records and enhanced communication among healthcare providers, while also addressing limitations like the need for workforce training and challenges in rural areas. The report identifies gaps in the strategy, including a lack of attention to health costs and operational expenses. Recommendations are provided to address these gaps, such as developing a training plan for healthcare workers, improving education and employment in rural areas, and preparing a detailed budget plan. The analysis emphasizes the importance of balancing the costs and benefits of digitalization to ensure the long-term sustainability and effectiveness of e-health initiatives in NSW. Desklib provides access to this report and other solved assignments for students.

Running head: HEALTH ECONOMICS AND COMPARATIVE HEALTH SYSTEMS
HEALTH ECONOMICS AND COMPARATIVE HEALTH SYSTEMS
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1HEALTH ECONOMICS AND COMPARATIVE HEALTH SYSTEMS
Introduction:
The health statistics of New South Wales has indicated the growing burden of disease on
the public sector of NSW. Increase in the hospital visits due to the increase in the poor health
condition has been found to be 672000. Increase in the triage category or cases of immediate life
threatening has been increased by 10% (Aubusson, 2018). Such condition has created excessive
pressure on the emergency department of the health care centre, thus has increased the pressure
of health department of NSW government. It has been found that, lack of information about the
health care reforms and lack of correlation between the information processes is one of the main
factor that restricts the general population in order to access the adequate health service. Demand
for the improvement in the health system has been increased and increase in the expectations of
the health care workforce has been found (McMullen et al., 2011). It has been found that
utilizing the process of electronic communication and information system could help to reduce
the issue of lack of information and correlation regarding the health reforms (McLean et al.,
2013). With increasing information about health system the access to the adequate health service
will increase, thus it could reduce the burden of disease and pressure of NSW government
effectively. In this regards the NSW government has taken effective strategies to promote e-
health and digitalization of health system (health.nsw.gov.au, 2018). The purpose of the report is
to evaluate the strategies. The following paper will provide a brief discussion including positive
factors of the strategies, limitations, gaps and recommendations for addressing the gaps.
e-Health priorities:
Positive factors of e-health strategy:
There are many positive factors of the strategies provided by the NSW government for
enabling e-health, for example, digitalization of health care system. Digitalization includes using

2HEALTH ECONOMICS AND COMPARATIVE HEALTH SYSTEMS
electronic medical record to facilitate the clinicians to order medical tests and reports digitally,
picture achieving communication to allow the clinicians to get report and images within 24
hours, HealtheNet to correlate the records of the hospital with the National e-health record and e-
blue book to develop the care plan and improve the quality of care. Such changes would help to
improve the quality of care, reduce the time in accessing report to start treatment, documentation
of patient’s health and develop patient centred care. The investment in the health infrastructure
would help to increase community health and outpatient care, service monitoring process,
electronic medication management process, keep clinical information, deliver health service in
rural areas and strengthen the process of e-governance (health.nsw.gov.au, 2018). The digital
innovation would help the practitioners to incorporating best practice in the clinics (Lee,
McCullough & Town, 2013).
Limitations:
Beside the improvement in the information and communication process and development
of infrastructure to improve the facility and access of health service, it is important to focus on
the economic impact of the strategies and the limitations as well. Most of the healthcare staffs
are trained in the traditional process, thus it is important to train the staffs regarding the use of
digital infrastructure. Such process is time consuming and some staffs may face difficulties in
adapting such technologies (Safdari, Ghazisaeidi & Jebraeily, 2015). On the other hand, in the
rural areas, due to lack of education and employment, economic condition is not adequate to
accept the technology. It may be difficult to access such technology in remote areas (Popescu,
2014). Such limitations could affect the implementation of the strategy of enabling ehealth.
Gap in the strategy:

3HEALTH ECONOMICS AND COMPARATIVE HEALTH SYSTEMS
The NSW government has introduced the strategies with high expectation of
development of health system and meet the increasing demands of the population regarding the
health service. However, there was no indication of health cost in the strategies. The strategy of
NSW government has promised to improve the technology to develop more effective service but,
did not mention about the training process for the staffs. On the other hand there was no specific
indication of operational cost such as investment in IT, marketing, installation, management,
back office and cost to the stakeholders (health.nsw.gov.au, 2018). Thus, it is important to
prepare proper economic evaluation of the strategy in order to understand the whether
digitalization of health system overvaluing the cost and undervaluing the benefits.
Recommendation:
In order to implement the strategy of NSW government regarding the digitalization it is
important to address the gaps and limitations in an effective manner with proper
recommendations. Firstly, the NSW government need to develop a training plan for the health
care workforce in order to help them to adapt the new technologies in an effective manner. It
would help the staffs to understand the proper way of utilizing the technology in order to provide
quality service while consuming less time (Lee, McCullough & Town, 2013). Secondly, it is
important to provide information regarding the benefits of digitalization in the remote areas. In
this regards the government need to resolve the issue of education and unemployment, so that the
people in the rural area could access the technology and the health service could reach to them to
provide adequate service (Gabriel et al., 2014). Third, the government need to prepare proper
budget plan including the expenditure of IT, management, installation charge, back office and
stakeholders. Improving the infrastructure through the improvement in technology. It would help
to evaluate the effectiveness of the strategy in the means of economic impact and analyse the

4HEALTH ECONOMICS AND COMPARATIVE HEALTH SYSTEMS
robustness of the strategy (Palmer, Byford & Raftery, 1999). With the improvement in the
infrastructure and technology the health cost will increase, thus the government need to manage
the health cost so that individual could afford the health service in order to improve their health
condition (Ogutu, 2016).
Conclusion:
From the above discussion it can be said that, the idea of digitalization of health system is
beneficial as it could help to improve the quality of service through improved technology. Such
improvement would help to reduce difficulties in time consuming process such as test, reports,
documentation, appointment and others. On the other hand digitalization would help the health
service to reach the remote area in order to serve the people that lack adequate health service.
However, there are some limitations and gaps in the strategies such as lack of indication about
health cost, lack of information about training of the staffs and lack of idea regarding
digitalization in remote area. Such limitations could affect the implementation of ehealth
strategy. However, with the recommendations provided in the discussion could help to address
such limitations effectively.

5HEALTH ECONOMICS AND COMPARATIVE HEALTH SYSTEMS
References:
Aubusson, K. (2018). NSW budget 2016: Health system burden may be underestimated, says
AMA NSW. Retrieved from https://www.smh.com.au/healthcare/nsw-budget-2016-
health-system-burden-may-be-underestimated-says-ama-nsw-20160620-gpnck6.html
Gabriel, M. H., Jones, E. B., Samy, L., & King, J. (2014). Progress and challenges:
implementation and use of health information technology among critical-access
hospitals. Health Affairs, 33(7), 1262-1270.
health.nsw.gov.au (2018). Retrieved from
http://www.health.nsw.gov.au/statehealthplan/Publications/NSW-State-Health-Plan-
Towards-2021.pdf
Lee, J., McCullough, J. S., & Town, R. J. (2013). The impact of health information technology
on hospital productivity. The RAND Journal of Economics, 44(3), 545-568.
McLean, S., Sheikh, A., Cresswell, K., Nurmatov, U., Mukherjee, M., Hemmi, A., & Pagliari, C.
(2013). The impact of telehealthcare on the quality and safety of care: a systematic
overview. PloS one, 8(8), e71238.
McMullen, C. K., Ash, J. S., Sittig, D. F., Bunce, A., Guappone, K., Dykstra, R., ... & Wright, A.
(2011). Rapid assessment of clinical information systems in the healthcare
setting. Methods of information in medicine, 50(04), 299-307.
Ogutu, E. O. (2016). Corporate Failure and the Role of Governance: The Parmalat
Scandal. INTERNATIONAL JOURNAL OF MANAGEMENT & INFORMATION
TECHNOLOGY, 11(3), 2747-2754.

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Palmer, S., Byford, S., & Raftery, J. (1999). Economics notes: types of economic
evaluation. BMJ: British Medical Journal, 318(7194), 1349.
Popescu, G. H. (2014). The economic implications of ehealth and mhealth
technologies. American Journal of Medical Research, 1(2), 31-37.
Safdari, R., Ghazisaeidi, M., & Jebraeily, M. (2015). Electronic health records: Critical success
factors in implementation. Acta Informatica Medica, 23(2), 102.