Individuals, families, contractors and businesses all have to work to a budget of some form. If money gets tight expenditure must be reviewed and wasteful spending cut. Equally, as consumers, we expect value for the dollars that we spend.
Government, of course, is different. If money is needed it either raises taxes or prints it. What never happens is a review of how the money is spent and how much is being wasted.
There is simply no imperative to do so and there seems to be no accountability as the finances of government departments are often opaque.
The health system is not immune to wasteful spending. The default position is always more funding is needed, never where we can make savings or where money is being wasted.
Many years ago, there were estimates that one dollar in every three nominally spent on health was spent on administration and bureaucracy. It is almost certainly higher now.
But before health dollars can be redirected, we need to know where they are currently going.
In the US, the National Institutes of Health put out data showing that in 2023 $US9 billion out of $35 billion (25.7%) in research grant money was used for administrative purposes. Some research institutions used 69% for administration.
The health system is not immune to wasteful spending. The default position is always more funding is needed, never where we can make savings.
How are we doing in Australia? We need to know. How much money could be freed up to provide actual services if waste was reduced?
For reasons I have never understood, efficiency is not valued in medicine.
If I cannot deal with issues more efficiently than 10 years ago, there is something wrong with me. And yes, that comes with experience that cannot be taught but is gained each day. Technology also helps.
Meanwhile in 2023, 26.6% of GPs were aged over 60. With Ahpra seeking to introduce mandatory health assessments for doctors at 70, we will have to become more efficient. But maybe, with better allocation of dollars, we could train and have more doctors.
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