The baby, the bathwater and a better health system

A better health system

Image: Pixabay.com

So we have a healthcare funding problem. Although there seems to be an appetite for change, it’s essential not to throw the baby out with the bathwater.

Our fee-for-system hasn’t done a bad job. Australians are healthier and live longer compared to many other countries, and our primary care sector is delivering cost-effective care.

On the other hand, as a result of population ageing, advanced technologies and new treatments, care becomes more expensive. Care needs are increasingly complex and require more interventions by a larger number of health professionals.

Our current fee-for-service may not be the best funding model for people with chronic and complex health problems, as it does not reward certain aspects of care – such as coordination.

The Federal Government is aiming for a ‘healthier’ Medicare and intends to find better ways to look after people with complex and chronic diseases, and keep people out of hospital longer. As part of this strategy the Primary Health Care Advisory Group (PHCAG) has been established to advise the government on reforming primary health care.

The PHCAG recently released a discussion paper and individuals, peak bodies and consumer organisations have responded with submissions. The advisory group’s recommendations for government are expected by the end of the year.

The future vision

The Royal Australian College of General Practitioners has, after consultation with members and external organisations, developed the ‘Vision for general practice and a sustainable health system’. If implemented, it will keep the benefits of fee-for-service for acute care, while improving care for people living with chronic and complex health problems.

The current Medicare Benefits Schedule discourages GPs from spending the time required with patients who have chronic and complex health issues. The system is based on face-to-face contact with patients – while care coordination and teamwork does not always involve the physical presence of the patient.

Consumers would like to see a healthcare model that empowers patients; they want less fragmentation and better integration and coordination of care.

To solve these issues, the RACGP made a range of recommendations in its submission to the PHCAG, based on the freshly developed vision. Essential components of the submission are voluntary patient enrolment and, in addition to the fee-for-service model, the provision of supplementary funding to support a range of patient services not currently or appropriately recognised.

Benefits of the medical home

Voluntary patient enrolment for all patients – not just for those with chronic and complex health conditions – ensures enduring relationships between patients, their personal GP and extended healthcare team, allowing for better targeted and effective coordination of clinical resources to meet patient needs.

There are four main benefits of voluntary patient enrolment:

  1. Practices will have a better understanding of their patient population and can better tailor services to the needs of their community.
  2. A stable and enduring relationship between a patient and a GP has a positive impact on health outcomes.
  3. It will benefit prevention and management of chronic diseases.
  4. Linking chronic disease management Medicare item numbers to a patient’s medical home will make sure funding for chronic disease management is directed efficiently and effectively.

Patients may choose whether or not to enrol in a medical home. Likewise, GPs and practices may choose to participate in the program.

Patients will be able to access standard consultations through any general practice, but chronic disease management, integration of care and preventive health will be limited to their medical home.

Implementing the medical home will need both initial and ongoing investment. However, any investment will result in cost savings, as efficiencies in the system are achieved.

New funding models

The introduction of support for GPs and their teams to undertake coordination work on behalf of their patients is essential and will stimulate multidisciplinary teamwork. This includes direct and efficient (electronic) communication between providers, and GPs need to be able to delegate care coordination responsibilities within a team.

A comprehensiveness payment made to a practice would recognise the practices and practitioners that offer a broad range of services to the community. The payment would be based on a defined breadth of item numbers used within a defined time.

The current incentives (PIP and SIP) need to be replaced by practitioner support and practice support payments as outlined in detail in the RACGP vision.

Reporting of de-identified patient data can be useful for the purposes of informing health system planning, but the college does not support the reporting of individual patient’s health outcomes or a pay-for-performance system. There is no evidence to suggest that reporting health outcomes improves the quality or safety of care, and there are no successful overseas models that can be adopted.

The cost of delivering quality care within the general practice setting is significant and increases annually in line with wages, consumables and infrastructure costs. It is imperative that Medicare patient rebates keep pace with the increasing costs of delivering quality care, so the freeze on Medicare rebates must be lifted.

General practice in Australia delivers efficient and cost-effective care. It is clear that health systems focusing on primary care have better health outcomes and lower use of hospitals. Now is the time to strengthen primary care – but let’s not throw the baby out.

This article was originally published in The Medical Republic.

Follow me on Twitter: @EdwinKruysDisclaimer and disclosure notice.

4 thoughts on “The baby, the bathwater and a better health system

  1. I just got hauled up by a NZ patient and practice at a international healthcare conference no gaps. NZ patients hate it- when something works they are forced to use substandard services because the Govt. has forced providers to provide free and not quality medicine. Freedom to choose is a right and not a privilege. Back off the Govt! Let the patient decide. The NZ experience is extremely concerning. I agree EK!

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  2. Hey Edwin, why does the QI and CPD points cost so much to administer? LOWER YOUR FEES. YOU ARE DIRECTLY RESPONSIBLE.

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  3. Pingback: Here’s a challenge for the Pharmacy Guild | Doctor's bag

  4. Pingback: Here's a challenge for the Pharmacy Guild - The Medical Republic

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