Challenges ahead include strains on GP and nursing capacity, an ageing population, rising technology costs impacting the adoption of new technologies, fragmented funding models, affordability concerns, health disparities, and the imperative to focus on prevention.
Challenges and opportunities
Australia's healthcare landscape is poised for strategic evolution, with annual health expenditure projected to grow by 4.1 per cent to reach $290.6b by 2027-28, as reported by IBISWorld.
We have supported organisations as they seek to streamline operations in response to the challenges the healthcare system faces:
- Demographic changes: With an aging population, maintaining the health and well-being of seniors becomes a priority, with projections indicating that by 2053, 21 per cent of the population will be aged 65 or above.
- Workforce challenges: There is a shortfall in the availability of GPs and nurses, with several sectors competing for resources. The demand is growing in line with the demographic changes. Innovative solutions are being developed globally to increase capacity, however Australia is lagging.
- Technology costs: While technological advancements enhance patient care, they also bring increased costs, necessitating strategic approaches to balance innovation and affordability.
- Funding models: The fragmented funding model across federal, state, and territory governments poses coordination challenges in patient care.
- Affordability concerns: Despite being a world-leading health system, rising healthcare costs outpace inflation, leading to increased out-of-pocket expenses for Medicare services.
- Health disparities: Disparities persist across socio-economic groups and between Indigenous and non-Indigenous populations, underscoring the need for targeted interventions.
- Focus on prevention: Shifting the healthcare paradigm towards prevention rather than solely treatment is crucial in addressing the evolving landscape of chronic diseases.
In addressing these challenges, stakeholders have a unique opportunity to collaboratively shape a healthcare future that meets the evolving needs of the Australian population. Strategic planning, innovative solutions, and a commitment to accessibility and affordability will be key in ensuring a resilient and responsive healthcare system for the years ahead.
Hospital and health services have sophisticated planning and resourcing frameworks that are tried and tested. The question arises are they fit for contemporary care, or have processes become so complex within the frameworks that they are inefficient?
We have insights that can assist you in resolving complex issues
We are helping to transform the Australian healthcare system by providing insights on healthcare system transformation and the journey towards inclusive care.
Consider your business model, funding opportunities and appetite for diversification. Does your governance framework and systems help or hinder you? What does the future of the healthcare sector look like for you? What are the steps you can take now to get you there? For many, these challenges will create opportunities – to acquire, to grow and to transform.
As a national team, we are able to mobilise easily to assist both local and national clients across a range of issues. Together with the expertise of our colleagues in strategy, consulting, financial modelling, technology, workforce utilisation, insolvency, organisational culture and more, we are here are support you.
Please contact us if you would like to know more about how we can help.
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