The final report of the Australian government’s 16-month-old National Health and Hospitals Reform Commission, released last week, has made clearer the pro-market and pro-business agenda driving what Prime Minister Kevin Rudd says is the most major “reform” of health care since the introduction of the Medicare universal insurance scheme in the 1970s.
In the guise of revamping the Medicare framework, the Labor government is actually preparing a major assault on public health care. Rudd is setting out to exploit the already severe under-funding and running-down of public hospital and health services over the past three decades to increasingly transform the entire system into a market-driven one.
To meet the demands of big business for higher productivity and “competitiveness”, the blueprint is designed to slash costs by rationing or “capping” treatment for those who are not privately insured, while boosting the profits of corporate insurers, private service providers and pharmaceutical giants.
In order to overcome popular distrust as well as unease among medical professionals, Rudd announced a six-month period of consultation over the implementation of the commission’s 123 recommendations. At their core is a scheme in which the federal government would no longer provide block funding for state government-run public hospitals but tender health services out to competition between public hospitals, not-for-profit organisations and health care conglomerates.
Instead of being funded to meet general needs, the contracted organisations would be paid only for specific patient outputs via casemix funding. This is a system in which hospitals receive pre-determined payments for each category of procedure, regardless of the patient’s recovery or prognosis.
The Australian Financial Review commended the government for laying the groundwork for the “Holy Grail of health-care reform”—a “big bang solution” of free market competition for federal funds. For business this “Holy Grail” means reduced social spending and lower corporate taxes, and bigger opportunities for profit making in health services.
http://www.wsws.org/articles/2009/aug2009/medi-a06.shtml