Ian McAuley | What about the real reform issues?

Ian McAuley responds to Gillard’s health policy announcements asks about the real health reform issues?

Understandably health administrators are saying “the devil is in the detail”. They have a huge task, particularly relating to the determination of standard costs for items of service.

Political pundits will see this as a success for a government still seeking to establish its legitimacy.

In terms of hospital funding it should achieve much of what the Rudd reforms were designed to do; we should see efficiency gains over time. Some economists may be puzzled that states were unenthusiastic about the Rudd reforms. States’ health care costs have risen from 22 percent of their budgets to 26 percent over the last ten years and are still growing; in that fiscal context the GST clawback looked attractive for the states. But that is to ignore other issues to do with the way powers are shared in a federation.

Continue reading what he has to say in Croakey, Crikey’s health blog here.

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