The development of a national framework that supports government intervention in prevention is one of three key reform areas identified by the Productivity Commission in a consultation underway on delivering quality care more efficiently.

The PC notes that evidence-based prevention programs can drive productivity in the care sector, however governments are often reluctant to invest in them as it requires upfront spending for benefits that can take time to be revealed.

It is hoped a national framework that can measure the long-term benefits of prevention may facilitate better government investment, and the commission is particularly interested in:

  • barriers to investment or the scaling up of effective programs
  • the extent to which inadequate funding has restricted effective prevention programs
  • the extent to which benefits of prevention accrue across different sectors
  • policy actions that could support greater investment.

Delivering quality care more efficiently is the fourth of five inquiries the PC is seeking feedback on by 6 June. In addition to prevention, the PC is asking about the scope for greater alignment and streamlining of quality and safety regulation across the care economy to boost productivity.

It has identified the following two other key reform areas for boosting productivity in the care economy:

  • reform quality and safety regulation to support a more cohesive care economy
  • embed collaborative commissioning to increase the integration of services
Danielle Wood

“Boosting productivity is the only sustainable way to improve Australians’ living standards, but productivity growth has stagnated in the past decade. It’s now at its lowest ebb in 60 years,” said Productivity Commission chair Danielle Wood.

“The reform areas we’re exploring are not recommendations. They are the starting point for the targeted research and consultation we are doing to ensure our recommendations are robust and implementable,” Ms Wood added.

The consultation phase involves a questionnaire on specific reform areas. Another consultation phase – written submissions on the commission’s draft recommendation – will take place after the interim reports are released in July and August.

It follows the PC’s 2024 Productivity Pitch, which called for ideas to address creating a more dynamic and resilient economy, building a skilled and adaptable workforce, harnessing data and digital technology, delivering quality care more efficiently and investing in cheaper, cleaner energy and the net zero transformation.

“We are grateful for the many ideas we received through the Productivity Pitch. We heard from everyone from teachers to business owners and healthcare workers – all with their own suggestions for helping Australia work smarter to boost productivity,” said Ms Wood.

“Now that we’ve used that input to refine our focus, we want to see the enthusiasm and engagement continue. Productivity powers our living standards and quality of life and everyone has a stake in seeing it grow.”

The productivity commission received 500 ideas in response to its Productivity Pitch, with the shortlisted ideas related to care including:

  • develop new models for commissioning services, limiting duplication and reducing fragmentation within the care sector and use navigators to support National Disability Insurance Scheme participants
  • introduce a single Care and Support Regulatory Framework that covers aged care, disability, veterans’ services and early childhood education and care to limit regulatory duplication and administrative burden and encourage cross-sector work
  • use pharmacists to deliver more care, such as reviewing medications, consulting on minor illnesses, helping manage chronic illnesses, illness screening, mental health support, and delivering vaccinations and prescribed medicines
  • invest more in preventative health, such as community-led primary healthcare services or vouchers to fund activities that benefit health
  • reform private health insurance to improve uptake, including taking payments out of superannuation or increasing rebates for older people in rural areas
  • reform the Therapeutic Goods Administration to better facilitate repairing and accessing medical devices.

Providers can participate in the consultation and find more information here.


This article was originally published on Australian Ageing Agenda. Follow Australian Ageing Agenda on LinkedIn and Facebook, sign up to the twice-weekly newsletter and subscribe to AAA magazine for the complete aged care picture.  

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