Accepting the reality of healthcare costs

The Daily Telegraph
Friday, April 23, 2010, page 40
Malcolm Farr

Summary
It would be a great progress in public hospital systems, which the federal government has promised to spend extra money on public health. Recently, the Council of Australian Government (COAG) meeting had given the public health reforms as a result. It showed that the states wished getting more money while the Prime Minister would like a systemic change in operating of health services. Actually, they have to face two economic realities. The first reality was that within about 30 years, health costs under current arrangements will be much more they will accept the whole state budgets. Nothing will be left over other important services. The second reality was the rate of rise in health costs would be about 10 per cent or possibly even higher for some states. Therefore, states had to look for some solutions to have more money for health. Obviously, there are no probable state taxes which do not press growth, productivity, and employment.

Now the goverment will provide more money for healthcare costs with changing in public health systems for getting more efficiency and having possible saving for other purposes. The states will also have to put their health contribution into the transparent area and will not able to distract it to other spending destinations.

My personal reflection
In my observation, the idea is quite good that the government will provide more money to improve the health systems in Australia. Alternatively, there is a tendency to saving of state budgets in health costs for other purposes, if the health funds would be spent on the right address. However, I agree that the reality of healthcare costs should be acceptable and realistic. Therefore, in this matter the transparence is very important, so voters will have trust in these public health reforms.