The Centre for Policy Development (CPD) welcomes the Productivity Commission’s interim report Delivering Quality Care More Efficiently, and urges the government to adopt its key recommendations while going further with purpose-driven reforms that put the value of care services at the centre of Australia’s productivity agenda.
CPD CEO Andrew Hudson says the report’s recommendations – particularly on prevention, collaborative commissioning and reducing service fragmentation – are important steps toward a care system that delivers better outcomes for people and communities.
“The Productivity Commission is right to acknowledge that care services create immense social and economic value that is invisible in standard productivity measures,” said Mr Hudson. “We want productivity growth that truly improves lives, so we must measure and invest in quality, outcomes and prevention – rather than just counting costs.”
The Commission’s recommendation for a National Prevention Investment Framework – supported by an independent advisory board – closely reflects CPD’s recommendations in submissions to the inquiry and in recent research (cited by the PC), including Avoidable Costs and Banking the Benefits. Not only will this help governments model and invest in prevention and early intervention – it will deliver better outcomes and save money over time.
CPD encourages the government to expand on this reform by applying the Framework to any preventative policy and allowing for the inclusion of second-round fiscal effects in any policy proposal before Cabinet. This would ensure the true costs and benefits of all policies are fully understood, rather than just specific prevention programs in the care sector.
“When we invest in prevention, we not only avoid higher costs down the track – we create a healthier, happier and more productive society,” said Mr Hudson. “It’s smarter, fairer and better value for public money.”
The Commission’s recommendation to embed collaborative commissioning to reduce duplication and improve services in the health system is also welcome, particularly when combined with secure, long-term funding so providers can better plan and deliver services more effectively.
CPD encourages the government to extend collaborative commissioning beyond health into all social services, and broaden the collaborative focus beyond levels of government to include co-designing services with the communities that use them.
CPD also welcomes the focus on streamlining regulation across care sectors to remove duplication and free up essential time that care staff could spend providing extra care. However the interim report could better recognise the difficulty in regulating largely privatised sectors like early childhood education and care, where providers are left to set prices and manage quality and workforce on their own terms.
“The subsidy approach in early education has fuelled rising fees, and patchy access. The government should consider new funding models that support not-for-profit providers, which are twice as likely to exceed national quality standards.
“The Commission’s report is a strong foundation for reform,” said Mr Hudson. “By building on these recommendations and taking a broader, purpose-driven approach, the government can ensure that productivity in the care economy works for people and communities.”
