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A New Approach to Primary Care for Australia

by Jennifer Doggett

Governments are always talking about taking the pressure off public hospitals. The current federal government says it can do it by subsidising the Private Health Insurance industry, which hasn't worked. The states argue that they could cut hospital waiting lists if only the feds gave them more money.

Both arguments are missing the point. The best way to take the pressure off hospitals is to ensure that most people don't need to go there in the first place.

Australia faces spiraling rates of chronic illness, including many that could be prevented, mitigated or cured through early intervention. Without change, we will continue to spend more and more to achieve less and less. Too many people have to fight their way through a complex maze of services and funding systems to deal with common illnesses that could easily be addressed at their local health centre - if only the state and federal governments were willing to take on the challenge of real health reform.

In a new paper published by the CPD, Jennifer Doggett shows that health systems oriented towards primary and preventative care achieve better health outcomes at a lower overall cost than systems oriented towards hospital care.

>> Download 'A New Approach to Primary Care for Australia' (pdf)
This paper doesn't just provide the evidence for a change in direction - it spells out how it can be achieved, with the establishment of 'one stop shop' primary health care centres staffed with all the expertise needed to manage the overall health of the local population. These centres would form the backbone of a high-quality universal health system, benefiting Australians of all backgrounds and incomes, rather than a limited ‘safety net’ service designed to catch the fallout from a two-tier system.

The cost of rolling out enough integrated primary health care centres to service the entire population of Australia would be around $4 billion dollars over ten years. This is the same amount that the federal government throws away in just one year to prop up the Private Health Insurance industry.


Latest news on 'A New Approach to Primary Care for Australia'

Coverage

Jennifer Doggett's article on why the Commonwealth's $1 billion health debt to the states should be invested in primary care was published in Crikey (subscription required), and an article on the themes of the paper will be published in the next edition of Hospital and Healthcare. Many of the recommendations in 'A New Approach to Primary Care' were taken up in the ALP's new Preventative Health Policy. The paper was featured in Australian Policy Online and in the WA Chamber of Commerce and Industry's 'Community Care' newsletter.

Jennifer also wrote an opinion piece entitled Question time for Abbott’s hospital plan for ABC News Online.

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Join the online discussion: tell us about your experiences dealing with Australia's complex health system, or explain how a well-resourced local health centre would make a difference in your life.

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Order your print copy

Hard copies of 'A New Approach to Primary Care for Australia' are available for $10 each including postage. Contact admin(at)cpd.org.au to place your order. CPD members are entitled to a free print copy.


About the author

Jennifer Doggett is a fellow of the Centre for Policy Development and the author of A New Approach to Primary Care for Australia. Jennifer is a health policy analyst and consultant who has worked in a number of different areas of the health system, including the federal health department and the community sector, and as a political advisor on health policy. She currently works with health provider, industry and consumer groups on a range of health issues.

Comments

CIS - Health promotion is not the point

Thanks Ian.

The CIS paper seems to equate 'prevention' with 'health promotion' as though the main role of the super clinics will be to run anti-smoking campaigns! The main gains through an increased investment in primary care is in chronic disease management and screening/immunisation programs, ie. primary and secondary prevention of chronic conditions. Although health promotion may be part of what they do, I don't think it was the main focus of our paper. I am critical of many health promotion campaigns - of course many of them could be done better but (like Ian says) we have had some spectacular successes as well, such as in the area of HIV/AIDS. And the fact that not all prevention strategies work perfectly is not an argument for maintaining our current system of patchy and badly coordinated primary care.

Response to CIS

Three points.

First, CIS are a bit cute when they say ant-smoking was about intervention rather than promotion. Intervention was the means to achieve the end of better health. Promotion is closer to an end rather than a means. That, is intervention can be a means to promotion.

Second, I’m not sure about the relevance of the failure of a UK campaign. Why did it fail? Because it was poorly designed, or was it, as the CIS suggests, because it is impossible to change behaviour? And why do they say so little about AIDS (one mention only) – where there has been behavioural change without any significant regulation?

And third, that old term “paternalism”. Let’s look at the definition (AHD). “a policy or practice of treating or governing people in a fatherly manner, especially by providing for their needs without giving them responsibility”. But, as pointed out by Schelling in particular, we can freely delegate responsibility for someone else to over-ride our myopia or impulsiveness. That, after all, is the essence of compulsory superannuation, where we have democratically appointed the state to overcome our short-term bias. (But the CIS doesn’t complain, because they are rather fond of
people in the financial sector.)

CIS uses Jennifer's Paper

The Centre for Independent Study has strongly criticised Jennifer's research in their latest Policy Monograph by Jeremy Sammut, The False Promise of GP Superclinics, saying...rather than keeping people well and out of hospital, GP Super Clinics are highly likely to put more people in hospital by uncovering unmet need for secondary care and tertiary treatment. GP Super Clinics will add to the demand and cost pressures public hospitals already face...". Download the full Policy Monograph, The False Promise of GP Super Clinics

Primary health care - The Public Private Schism

The recommendations to improve the nations health system is timely and to be recommended.
As a medical practitioner who has worked in several countries including Canada,France,U.K.(NHS) the west Indies and 25 years in Australia I have become convinced that Tudor Harts Inverse Squre Law is relevant to the provision of services in both developing and developed countries ie those who suffer the most illnesses are also those least able to pay for treatment.Hence I endorse the principals of the UK national health service that decent basic health care should be available to all.
In my opinion this objective can only be achieved if health workers are not on a fee for service basis but on appropriate salaries. The current imbalance in Australias medical services is significantly related to the fact that doctors not only set fees but also bill patients for services.
Whilst expressing these views I am aware of the opposition to them but earnestly believe that unless this issue is addressed the present unequal two tier system in which the wealthy enjoy a superior system than those who struggle with the increasingly restrictive financial demands of everyday life.I hope these comments are seem as useful and consructive.
John Spencer FRANZCPsych

Comments on "A New Approach to Primary Care for Australia"

I strongly agree with the analysis of the Australian “health system” (more accurately described by futurist Peter Ellyard as the “illness industry” for it is illness focussed and certainly not systematic) and the need for reform. There must be a considered Primary Health Care Policy but within the context of an integrated Health Care Policy. Primary care is essential as the basis for a good health system but some vital things must change - the funding system, the focus on illness, the way the "system" is designed for the needs of the health professions rather than the patients, and the idea that hospitals are desirable rather than as monuments to the failure of the health system.

The proposal to develop Primary Health Care Centres, while admirable, does not go far enough.

In particular the role of prevention is poorly spelt out and unimaginative. We need to address patients at risk of chronic disease by addressing the lifestyle determinants of their health - smoking, nutrition, physical activity, substance misuse, depression, anxiety, stress and the like. This should be done by a multidisciplinary team including nutritionists/dietitians, exercise physiologists, and psychologists. Maybe in the future we may see lifestyle coaches added to the team. These should all be based in general practice to make them more accessible. A better model is that of Wellness Centres as outlined in http://www.aph.gov.au/house/committee/haa/healthfu... .

Great caution must be taken when putting health care providers on governance boards. They tend to act in accordance with their profession’s/organisation’s needs rather than the community’s. Health professionals have a tendency to turn planning towards the most complex cases and can lead to overservicing. There probably needs to be a lay governance board and a multidisciplinary “clinical governance board” advising management.

There should be shared electronic health records and also shared electronic care pathways that link with the hospital, NGO, and private health care providers patient management systems. Patients would have to sign up to a data sharing confidentiality statement which should include some form of description of the benefit of continuity of care and the provision for reduced access for particularly sensitive data. This will reduce potential for errors and duplicated servicing. Patients would be able to add to records (electronic transfer of home monitoring of blood glucose or blood pressure monitoring are assumed) but not to edit them. The care pathways would allow GPs to book into hospital outpatient appointment scheduling once agreed established clinical criteria are “achieved”.

There should be a single business model. The purpose of the health system should be to keep the population well (as distinct to treating them once they get unwell). To achieve this primary health care providers should be funded on some form of population based formula with some adjustment for demographic differences (notably age and ethnicity). A population of 100,000 is large enough for “swings and roundabouts” to apply. The funding given to the PHCC Board should include what we now know as MBS, PBS, radiology and pathology subsidies, Department of Veteran Affairs primary health care funding, and HACC funding as a minimum but it must not be kept in silos. The PHCC will have to buy pharmaceuticals from pharmacists, radiology from radiological companies etc. This is to allow trade-offs between various modalities of care. For example it may be more beneficial to provide a more expensive drug to get a quick resolution to a problem than a cheaper one that requires more visits to the PHCC. It will certainly be more cost effective to treat say depression with physical activity than antidepressants. In the longer term it will be far better to prevent illness by lifestyle interventions than letting patients develop chronic diseases and then treat them. Of course there will have to be safeguards to prevent deliberate underservicing just as we now have the HIC monitoring overservicing. No PHCC will be able to turn away high risk patients. As occurs in New Zealand, a percentage of funding (say 10%) could be withheld unless certain levels of preventive care (e.g. 95% childhood immunisation, or cervical screening) are achieved.

I have strong concerns about the proposed staffing levels, especially of GPs. Even at the highest level of 20 GPs for a population of 100,000 gives a GP to patient ratio of 1:5,000 – far below the current urban level of around 1:1200. The number of GPs to service 100,000 at those levels would be in excess of 70. Even at the lower limit of 15 GPs the PHCC is probably too large to be manageable (one of the corporate GP companies has determined that 6 GPs is the optimal number). A better configuration would be small chains of centres having 5-6 GPs and a complement of allied health professionals and nurses. With shared electronic health records the lesser used allied health professionals could be rostered across all the centres in the chain as could visiting medical (and other) specialists for outpatient services. A chain would allow a better geographic spread (hence improving access) and improved functionality. Better still in more rural settings more distinct local identities could be established – particularly for aboriginal services. Again the chain concept is included in my Wellness Centres paper.

We have a reasonable illness industry but the development of Primary Health Care Centres and/or Wellness Centres could bring us a health system for the 21st Century. We now need political and bureaucratic leadership.

wellness centres

Jennifer Doggett

I agree with John that we need to increase the focus on "wellness" and to think about ways in which we can fund health care providers to provide preventive health services. Part of the problem is that because primary care and hospitals are funding separately there are no incentives for primary care providers or funders to prevent people from going into hospital. John's suggestion of direct incentives for preventive health services (eg for maintaining specific immunisation rates or rates of cervical cancer screening) is an attractive option - if we can get the incentives right. As far as I know it seems to work well in the area of childhood immunisation (although I am not sure how much of the increase in child immunisation rates can be attributed to GP incentives and how much to linking immunisation to childcare benefit - has there been any research on this does anyone know?). One of the difficulties with applying this approach more generally may be the lack of patient enrolment so that the centres do not have a defined patient population for whom they provide a service. This is also an issue I think more generally for funding preventive health services - our current system relies on people showing up to a health service, the people who don't show up at all aren't factored into the funding equation. This is obviously a problem since many of the people who don't go to the doctor are people who could benefit from more health care. But working out the best way of funding health services to identify and provide care for these people can be a problem.

I agree that pooling funding (eg MBS, PBS, HACC etc) would allow for a more efficient allocation of resources - however politically it might be difficult to achieve.

The idea of a "chain" of services is attractive - perhaps a "hub and spokes" model would work, with a major centre with more GPs and a broader range of services (pathology, pharmacy etc) attached to smaller primary care centres with GPs and some allied health?

Denying the problems?

I would suggest that Evan has taken a contrarian view on the basis of prejudice rather than principle.

On the subject of prevention, the paper quite clearly articulates the desire to deliver individuals not only continuity of care, but also advice and counsel, across their lives. It does this by recommending registration with a specific centre, and a unified patient-controlled database.

Further, it articulates the need to examine funding models which go beyond the current fee for service model, which plainly encourages throughput rather than stewardship.

The current GP-based system, and its funding arrangements, imposes substantial out-of-pocket costs and inconvenience for any services beyond the remit of the GP - it is hardly the basis for holistic health management.

The paper is the result of expert policy input - a loaded term - but that input includes major state-based community and stakeholder consultations. It is therefore hardly "a solution in search of a problem"; rather it is a distillation of obvious structural shortfalls into a cogent policy solution.

Are there improvements to be made, more practicable responses? I'm sure there are, and that constructive input would be appreciated.

A New Approach to Primary Care for Australia

This one is good time news to Australia.The policy that your country had made a big excellent move.I am sure that the people there were very happy for that big news. It feels so good that solution is there.

_________________
ann

Some thoughts on ‘A new approach to primary care for Australia'

Gavin Mooney, Professor of Health Economics, Curtin University

This paper [1] is very welcome. Primary health care (PHC) in Australia is important but currently is not delivering either efficiently or equitably. There needs to be radical reform and the ideas presented in this paper make an excellent start. We have increasing evidence in the international literature that PHC can not only produce good population health but also reduce health care spending. So it matters.

PHC in Australia is currently very much dominated by GPs. That might be OK if the GP sector were thriving but the dominance of fee-for-service medicine and the fact that primary care Medicare is a metropolitan system lead to inefficiency and inequity respectively.

There is a need for much more integration of PHC services as the paper brings out. ‘One stop’ PHC shops are surely the way to go and the GP Plus model [2] of South Australia (more below) looks very useful for both integration of services and for acting as a hub to help people through the maze of PHC services potentially available – if clients could but find them.

The emphasis in the paper on integration and coordination has to be right as that is the key issue facing PHC in Australia.

My comments are not so much on what is in the paper with which I very much agree but are around my desire to take things further.

The paper is called a new approach to primary care for Australia. That is excellent but the paper does not live up the title and is almost exclusively about primary health care. A broader base is needed. Interesting in this context is the development of what is called the GP Plus Health Care Strategy in South Australia [2]. This primary care initiative is exciting and involves, as the Minister John Hill has described it, ‘collaborations between multidisciplinary health care and support services to provide integrated and continuing care to contribute to improvements in the health of the population’. It is a great initiative that has come into existence as primary health care but can so easily result in these GP Plus centres becoming primary care centres helping to coordinate and refer clients to not just health services but other (non-health) services as well.

There is also a need to think through more what and whose values are to underpin primary care in future. Certainly my own experiences with Citizens’ Juries [3] suggest to me that the case for such community preference elicitation is surely strongest in primary care and the community rather than in the hospital sector. We need the informed citizen’s voice to drive the values in health care but especially in primary care.

The paper argues that Australia has a strong GP sector compared with other developed countries. I would disagree and would want comparisons made more broadly and not restricted to English speaking countries. The Danes for example have got it right – at least for them – and we need to look at what we can learn from them. And why look only at developed countries when Cuba can with far fewer resources do so well in primary care?

A plea too to recognise the potential role of NGOs in primary care. They too have to negotiate the maze and spend too much time currently doing so, leaving often too few of their resources for service delivery.

The paper is good on Aboriginal health but might have drawn more on the experience with Aboriginal Community Controlled Organisations (ACCHOs) which in many respects are existing examples of Jennifer Dogget’s primary health care centres. They are community controlled; they are not GP-centric; they are about primary care and not just primary health care. They are a good starting place for examining reform in the primary health care sector in Australia.

The paper is surprisingly quiet on GP Divisions. Currently many of them spend too large a proportion of their funds spent on keeping their doors open. They are too small and too poorly funded to attract good managers. They are very GP focused and not primary care orientated and simply and increasingly arms of federal government with little discretion locally.

Yet – and this is the key point - there is an abundance of energy in at least some Divisions to try to get the system working to provide good primary care. The system works against this however.

There is a powerful argument for building on to this paper a strong divisional sector. This need to have primary care divisions and they need to have much more autonomy than the current lot do. They also need much more money and each to be much bigger. Currently there are 119 divisions and they receive about $75 million a year from federal government. I would suggest initially reducing the number of divisions to about 40 which immediately means tripling each division’s income. More importantly I would want to give them all the monies for primary care and leave them each to decide, for example, how to pay staff, including GPs. Currently the dominance of fee-for-service is a blight on delivering anything other than fast services. Some capitation element, especially in rural areas, is needed if GP, PHC and primary care are to be more population focussed.

There need to be some bodies in primary care to stand up to the powerful hospitals. The paper draws attention to the overemphasis in Australia on hospitals but does not grapple with the need to have a power shift in health care from hospitals to primary care. Without that shift in power, little will change. These new primary care divisions might be the answer. It might also be useful to do as the Danes do and have a separate union for GPs (but maybe call it something other than, as in Denmark, the PLO!).

References

1. Dogget, J. A new approach to primary care for Australia
http://cpd.org.au/sites/cpd/files/u2/A__new_approa...

2. Department of Health (2007) GP Plus Health Care Strategy. Government of South Australia: Adelaide.

3. Citizens’ juries in health; please say Yes Minister. http://cpd.org.au/node/3689

Response to Gavin

Jennifer Doggett

Thanks for that very useful and insightful input. I agree with the general point that there is a lot more that needs to be done in primary care that is not covered by this paper. I guess one of our aims was to find a balance between advocating for what needs to be done in an ideal situation and putting forward a practical proposal that would move us in the right direction but which we thought would be politically saleable. This is always a difficult call and we might not have got it right - but it was based on our assessment of the political climate at the time. This of course does not mean that we should not keep exploring and advocating other options for reforming health care funding and service delivery, such as fundholding, capitation, patient enrolment etc.

I totally agree about the need to think more about the values that underpin health care and the role of forums/processes such as Citizen's Juries to elicit community preferences. This is certainly something that should be included in an updated version of the paper - I think it would also be worth looking at separately in relation to obtaining consumer/citizen input into health care policies/programs more generally. I think that many of the perenniel unresolved issues in health care could be addressed if we gave consumers more power within the health system. Directly addressing issues such as rationing of resources within the health system is also important - rather than the collective illusion that many of our politicians/managers/health professional groups seem to operate under that there would be enough health care for everyone if someone else would just do something about it.

Agree with the comments on Aboriginal Community Controlled Health Organisations - we have a lot to learn from how these work. No point re-inventing something if we have examples of how it can work in front of us.

Also agree with comments on GP Divisions. I think Divisions need to decide whether they want to morph into the sort of organisations Gavin talks about and really make a difference in primary care. Or whether they want to stay as small GP-centric organisations running a few isolated bureaucratic programs on contract from DoHA.

I have never understood why GPs don't form their own union and take on the other medical groups and institutions such as hospitals. To an outsider like me, it looks like GPs have very little to gain in throwing their lot in with the specialists and quite a lot to lose. And yet they continue to do so and as a result they don't have nearly as much power or influence as they could have. The AMA really doesn't advocate for GP interests at all as far as I can tell, and the RACGP and Divisions have different roles so there is definitely room for a more politically-focussed GP organisation - if GPs want to have a real influence over the direction of primary care policy in the future.

New approach to Primary Health Care

I have serious concerns about "Solutions looking for problems". That isn't to say that sometimes they might be the most appropriate at the end of the day.

This paper from the very beginning felt like a hard sell of the proposal. I don't think that is sound basis for developing Policy, and the latter is what CPD is all about.

As an example, no one in their right mind would argue that we shouldn't increase measures of prevention, but to claim that as a benefit of a new multi disciplinary primary health service isn't valid.

The issues and potential alternatives approaches were not discussed, contrasted and compared. Although a quote was made to some underlying values, which I think is great to see, the paper didn't then use them as basis for its approach and findings. EG, cost was raised as a significant issue related to values of equity, fairness and access, but alternatives for charging, funding, etc, were not covered.

I could go on. But I think a couple of examples surfice.

Very dissappointing.

Health Care

An excellent proposal. Clear, compelling and cogent. It seems to me that the case verges on unarguable.

1. Does it really need to be one centre. 15 GP's sounds like a lot. Especially with the abysmal public transport in our suburbs would it increase the cost too much to have several smaller centres to service a region?

2. Governance may be a problem. How would those wishing to do education get a hearing from those with major investment in the current system. The accountabilities and how they are decided seems to be a make or break issue. I guess you may know how other countries have managed this.

3. Politics - related to 2 above. How does this get implemented? Who is-are the people and groups with an interest in pushing this. I can only think of the government - the major funder.

4. I'm a fan of the Whitehall Studies. I think they are the most important findings on health for a very long time. Compared to these the centres still feel medically focussed to me rather than health focussed.

Congratulations on taking on an important topic and providing a coherent and impressive way forward. My heart felt congratulations.

PRIVATE HEALTH INSURANCE DOES NOT ENSURE QUALITY CARE

My experience with elderly parents needing hospitalisation for operations and accidents was totally surprising and infuriating.
In a nutshell " CARE" goes missing from Health Care.
Experiences include
1) Irresponsible discharges from acute/major operations resulting in return via emergency services back to intensive care (three operations/ three returns)
2) Broken hip operated-on, but geriatric doctor did not appear for two weeks, nor could he be tracked down in his surgery nor within the hospital proper. Family, next of kin, left totally in the dark as to condition.
3) Broken hip patient left to own devices for ablutions resulting in fall in bathroom and severe shoulder injury, unhealed 6 months later.

These octogenarians paid health insurance thoughout a healthy life of 60 adult years. Now when needing attention the service paid for is totally substandard. Peace of mind as a sales pitch is effective until you enter the system.

So Private Health Insurance may assist the system cost wise and process wise but is not worth the outlay in terms of services purchased.

Elsewhere I have mentioned that technical skills are lost within the Industry by promotions to Management. This is not efficient or effective Division of Labour.

Also I have notified Canberra of a new report from the USA on the Health Benfits of Volunteering.
www.nationalservice.gov/pdf/07_0506_hbr.pdf
This has particular relevence with Baby Boomer retirements.

Finally I support any approach to devolve public service delivery. Canberra can still pick up the tab.

Primary Care

Thanks for this excellent paper and its proposals with which I agree in principle.

Other matters for consideration could be:-

a) Retain the Primary Care title but develop the model so it refers to and covers "well-being" rather than "health". With its current inclusion of mental health, counselling and family planning it is really dealing with well-being, which includes health, happiness and prospering (thriving or flourishing).

b) Including (in the model) Local Area Coordination for citizens with inabilities (preferable to the term "disabilities").

GRAHAM DOUGLASFOUNDER, INTEGRATIVE FEDERATIONAchieving Sustainable Developmenthttp://www.integrative-thinking.com

Practicle example

My local community centre rings me each autumn to remind me to get my free flu inoculation.

At that time I also have a couple of other checks I should have. I otherwise I would never bother.
fluff


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