An Australian company is aiming to replace the current system of tracking health claims with one that will cost the country millions of dollars.
The health system is already plagued by delays and a lack of clarity around what the system really is.
It’s the second major shakeup in the health system in just two years.
Health Minister Josh Frydenberg announced a review into the way Australia’s health system works earlier this year, but the government has yet to make any changes.
In July, the health minister said the Government was committed to the current health system, but did not commit to fixing the current problem.
“We are going to be taking the review into account and we will be making decisions as to what’s required to fix it,” Mr Frydenberger said at the time.
“But we are committed to making sure that the system works and delivers quality services to the people of Australia.”
The review is due to be completed in the next few months.
“What we want to do is move forward to a system that works for the Australian people,” Mr Friesenberg said.
Mr Frydaerberg said the system was currently working well for some patients and was helping improve access to care. “
So what we will need to do now is look at whether there is a more effective and better way to do that.”
Mr Frydaerberg said the system was currently working well for some patients and was helping improve access to care.
“This is what we call an ‘efficient system’,” he said.
“[It] minimises the number of people in hospital and minimises unnecessary interventions in hospital.”
The system, called Health and Social Care (HSC), uses the same system as the Medicare system, which currently records health claims and pays out money directly to hospitals.
The HSC system is used by the Federal Government to cover about a third of the cost of a hospital stay for patients with acute or chronic conditions.
It has not been replaced for some time and has cost about $7.5 billion to run.
Mr Fryde said the HSC had saved the Government about $6 billion over the past four years.
“The system is so efficient, it minimises our costs,” he said on Wednesday.
“There’s only about $3.6 billion in total spending on the system.”
However, the review was expected to include recommendations on how the system should be redesigned and if there should be a “revenue sharing” model.
A “reparations model” for the system will be a key part of the review, which is expected to look at what should happen if the system were to fall into disrepair.
It could mean hospital costs would be deducted from patients’ income and a government tax credit could be introduced.
Mr Frysenberg is also planning to work with the Australian Medical Association to examine how to make changes to the HSA, which would give hospitals the option of using the money for additional services.