Industry Focus

Healthcare • Issue 4 3 Taking advantage of incentives Uptake of the Pharmacy Practice Incentives Program launched in 2010 continues to grow, with 93 per cent of all pharmacies in Australia participating and 81 per cent registered for all six key priority areas, a spokesperson for the Pharmacy Guild of Australia says. Greg Turnbull says the program ensures services are delivered to a defined standard. "The program also provides for better collection of data about clinical interventions in particular, which provides health authorities and the government with a strong basis for measuring the health impact of community pharmacies into the future," he said. Pharmacy Practice Incentives consists of four individual programs aimed at delivering quality services to an agreed standard in about 5000 community pharmacies across Australia. Allocated funding is currently distributed across dose administration aids ($132 million); clinical interventions ($97 million); staged supply ($35 million); and primary healthcare, working with others, and community services support ($75 million). The program runs until mid-2015. As yet, no analysis of the program has been completed. Source: Fifth Community Pharmacy Agreement NEWS Proposed Medicare co-payments divide pundits Proponents of GP co-payments promise that poor and vulnerable members of the community will continue to be protected by initiatives such as the Medicare Safety Net. Without factoring in the impact on demand and overservicing, a $7 co-payment would save at least $3.4 billion in four years, based on the number of services consumed in 2012–13. Dr Jeremy Sammut of The Centre for Independent Studies argues that the co-payment would also "reduce the anomalies whereby different patients are charged differently for different services", citing the PBS as an example. But critics contend that co-payments would disproportionately affect the sickest and poorest, and could actually cost more in the long run. Australian Medical Association President Dr Steve Hambleton says co-payments would create a disincentive for people to see their doctor and add more red tape for medical practices. "There is not a significant problem with supposed unnecessary use of GP services," he says. "The greater concern is putting barriers in the way of people seeking relatively inexpensive GP treatment for health complaints. "Rather than looking to make savings in general practice, the government should be investing more in primary care and prevention." Others question whether the co- payments would raise enough money, and express concern that if insurers are able to offset the cost for their members, a two-tier system will develop. Many suggest that reducing inefficiencies and raising the Medicare levy would be a fairer way to address the deficit. In response, Health Minister Peter Dutton says that to fully cover climbing healthcare costs the Medicare levy would have to increase to 9.5 per cent. "Those who are least able to look after themselves will be looked after," he assures. Sources: Australian Medical Association, The Centre for Independent Studies Insurers to play bigger role As health costs and the ageing population burgeon, the Abbott government will increase opportunity for "Australians, who can afford to do so, to contribute to their own healthcare costs", says Health Minister Peter Dutton. Speaking to the Committee for Economic Development of Australia, Dutton confirms the government would also work to ensure "that private health insurers can operate in a strong economy with regulatory certainty". In the 10 years to 2011–12, healthcare expenditure in Australia increased by 122 per cent to $140 billion, according to Dutton. During the same period, the number of Australians aged over 65 rose from 2.5 to 3.2 million—a figure projected to reach 4.5 million in 2024. The bulk of the cost comes from a small group of people; in 2012–13, 10 per cent of patients accounted for 46 per cent of Medicare Benefits Schedule expenditure and 58 per cent of PBS expenditure. In that year, 80 per cent of PBS expenditure went to people with concession cards. "Governments contribute the great bulk of this funding—meeting about 70 per cent of costs—while individuals directly contribute about 17 per cent towards the cost of their own healthcare through out-of- pocket payments," Dutton says. "The universal health system means there will always be value in leveraging people into supporting their own health needs in the private sector," he says. "This is where the role of private health insurance is so important." Source: Committee for Economic Development of Australia

• Cover