THE next NSW Government must call a Royal Commission into the State's $33b health spend, as a landmark report reveals chronic misallocation of resources and warped priorities, says the Health Services Union.
Health Services Union NSW Secretary, Gerard Hayes, said there has been over 20 major reports into sections of the health system over 40 years without substantial action, making an overwhelming case for a a Royal Commission into the entire health system.
"The system is just completely out of whack.
"Our health system needs to be fixed," Hayes said.
"But before we apply treatment we need to properly diagnose the illness and this report lays the groundwork for a Royal Commission.
"Ambulance ramping and emergency wait times are obviously deeply concerning.
"These are symptoms of a deeper malaise that needs to be addressed.
"Highly paid providers are often incentivised to provide expensive procedures that boost their earnings but don't relieve pressure for the wider community.
"At the same time, investment in preventative health is woeful," Hayes said.
Reform Critical - A Fragmented Health System at Breaking Point was completed for the Health Services Union by Impact Economics and Policy.
It paints a picture of a fragmented system where some providers have incentives to supply more services to boost their incomes rather than being guided by patient health.
Key findings are that from Jul to Sep 2022, 10% of people who urgently needed an ambulance in NSW waited over two hours.
Patient complaints about health care services increased by 40% since the start of the pandemic, and 144% since 2011-12.
Figures from the NSW Government show that 1,000 hospital beds in NSW are occupied by people staying longer than recommended who could have been in aged care facilities or are NDIS participants, costing the system close to $500m per year.
This is equivalent to one Royal Prince Alfred Hospital filled with these patients, and with over 50% of NDIS patients have delayed discharges, with an average length of stay of 100 days.
Australia spends 85% less on preventative and community health than Canada, while NSW spends $100 less per person than the Australian average, resulting in a funding shortfall of $872m per year on services that could prevent illness and hospitalisations.
This under-investment costs the NSW hospital system over $1.1b per year making wait times worse.
Over $2.5b in 2021-22 was lost due to fraud in Australia's Medicare Benefits and Pharmaceutical Benefits Schemes.
The report added that overservicing driven by a reliance on fee-for-service funding models is leading to more waste across the system, the union concluded.
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