NSW’s Health System Needs Revamp to Address Aging Population, Says Chief Health Officer
NSW’s Chief Health Officer, Dr. Kerry Chant, has issued a stark warning that the state’s healthcare system must adapt to reflect its rapidly aging population. In a joint report with senior NSW Health bureaucrats, Chant argues that the increasing prevalence of age-related and mental health conditions demands a shift towards out-of-hospital services and preventive care. However, the current funding model, particularly the activity-based funding (ABF) system, disincentivizes this approach.
The report emphasizes that access to quality clinical care in residential aged care facilities, along with easy access to GPs and allied health professionals, is crucial to prevent unnecessary hospital admissions. Moreover, it highlights the misuse of hospitals and emergency departments as last resorts for older people and those with disabilities due to a lack of adequate community support services.
Chant and the bureaucrats propose a transition towards outcome-based funding, which would reward healthcare providers for achieving positive patient outcomes rather than simply for the number of services delivered. This shift, they argue, would foster innovation and encourage the expansion of out-of-hospital care, better aligning with the changing healthcare needs of the state’s aging population.
The report’s findings underscore the urgent need for a comprehensive review of NSW’s healthcare funding system. The upcoming Special Commission of Inquiry into Healthcare Funding, which is set to report its findings by August 2024, presents an opportunity to address these critical issues and ensure that NSW’s healthcare system is well-equipped to meet the needs of its aging population.