“The Turnbull government has neutralised a vocal opponent by promising to control spiralling pathology collection centre rents, which will boost margins for companies such as Sonic Healthcare and Primary Health Care.

………In the opening stages of a hard fought federal election, the deal is a win for the government, which has managed to pacify an opponent……..”

……After years of growth upon growth, GDP per capita has turned pretty much flat in the last few years.

….In fact, GDP is not even the best measure of individual welfare. If you want to adjust for inflation and look at people’s disposable income, things are even worse.

GDP …. flat

External link, the views expressed are not necessarily those of savemedicare.org news.com.au population boom’s hidden secret

Reports emerge of “well advanced” planning for massive outsourcing of government payments with a view to making it a key feature of Treasurer Scott Morrison’s first Budget in May.

…the $50 billion-plus outsourcing would be the first time the private sector has delivered a national service subsidised by the government.

…would administer claims and payments while overseeing eligibility criteria, meaning they would require access to people’s sensitive private information.

….The Health Department 18 months ago asked for expressions of interest to deliver Medicare, PBS and Veterans Affairs payments. The three programs will dispense a combined $39 billion in 2016-17 — $22 billion in Medicare benefits and $10.5 billion in PBS subsidies.

Total payments for aged care, including home and community care programs, will be $15.8 billion this financial year.

external link The West Australian

Health Minister Sussan Ley has admitted only around half of the money saved by cuts to Medicare Benefits Schedule items will be re-invested in new procedures and services, …..

Ms Ley said that although some of the funds freed up by cutting items from Medicare would be spent on new listings, much will go on shoring up the Budget.

External link AMA: Only Half of MBS Savings to be reinvested in Medicare

“Treasurer Scott Morrison delivered a blow to the aged care sector and demonstrated the government does not recognise the growing needs of caring for our ageing population,” said Australian Nursing and Midwifery Federation (ANMF). Federal Secretary Lee Thomas.

“The aged care sector provides around-the-clock nursing to the frail aged and many with complex and chronic conditions require 24/7 care.”

The ANMF is concerned about nurses conditions but the real threat is to the health of the aged. If the savings cant be found by hiring less skilled and lower cost staff the elderly will pay with reduced services and health.  Relatives will have to make up the shortfall out of their own pockets.

External link MYEFO Rips $472 million from aged care….

Professor Owler said the axing of the bulk billing incentives for pathology and diagnostic imaging services will increase the health cost burden for Australian families, with the poorest and the sickest being hit the hardest.

These measures are simply resurrecting a part of the Government’s original ill-fated co-payment proposal from the 2014 Budget,” Professor Owler said.

It is yet another co-payment by stealth.

Cutting Medicare patient rebates for important pathology and imaging services is another example of putting the Budget bottom line ahead of good health policy.

These services are critical to early diagnosis and management of health conditions to allow people to remain productive in their jobs for the good of the economy.

The AMA strongly opposes these measures, and we will be encouraging the Senate to disallow them.

……..

The Government is repeatedly cutting away at the Health budget despite there being no evidence of a health funding crisis.

Full press release, external link AMA Press Release

Sonic Healthcare, a global pathology and radiology giant, said that it has no intention of absorbing the cuts and will charge payments and reduce services in rural and regional areas to protect its business (SMH 17/12/2015). Other major health services suppliers have also indicated they will introduce a co payment.

Additional comment Cuts to Pathology and Diagnostic Imaging

For the full article, external link to Grattan Institute, by Stephen Duckett

Extract follows:

…2014 budget……..growth numbers were presented as part of the government’s then mantra of a “debt and deficit disaster”, and massaged to create maximum shock and awe. The minister’s numbers did not adjust either for population growth or inflation.

…. a more legitimate set of growth numbers would still show Medicare Benefits Schedule (MBS) payments growing at an annual rate of 2.3% in real per-head terms, faster than growth in government expenditure overall (1.8%).

But this still leaves open the question of whether consumer behaviour is driving rising costs or whether there may be other causes.

A report released last week by the Parliamentary Budget Office shows that government policy has driven a significant proportion of the growth in MBS costs. In fact, of the A$325 real increase in MBS spending per head since 1993-94, all but A$74 has been the result of explicit government decisions.