It has been interesting reading the analysis and opinion around the new Rudd health plan. In fact, I am confident that the commentators have put an order of magnitude more of thought into the plan than the authors of the plan itself. The idea is a flawed diversion destined for failure.
The first reason for this is that there has been as yet no extra money allocated to the health system. The entire premise is that an equal number of bureaucrats (presumably the existing ones relocated) will somehow magically extract new efficiencies from the same health dollar. Efficiencies that these same bureaucrats have been unable to think of or implement until now. It is analogous to Victoria hoping that all the public transport woes will be solved by covering over the name Connex with stickers that say Metro.
The second reason is the cowardice that keeps the States ultimately responsible for health delivery. The states have to underwrite the so called efficient price. The states have to negotiate enterprise agreements with the staff of the hospital. It seems to me this is a recipe for more rather than less blame shifting. The courageous alternative would be for all public hospitals to be run by the Commonwealth so that failures and blame would unambiguously rest there.
The third reason is that this plan lacks any new methods of rationing of healthcare. Although rationing is one of those words which must remain unspoken, the central problem of economics is after all the reconciliation of unlimited wants against limited supply. It is patently ridiculous that for many elective operations there exists no agreed threshold for surgery and no prioritization of those waiting according to the magnitude or impact of their symptoms. Admitting the fact that expectations will always exceed demand and having a rational debate about this point is essential to the design of a new system.
Caution is recommended in interpreting what is meant by independent – as in independently determined efficient price. This is from the same crowd that think that Fair Work Australia and the Henry review of taxation are exemplars of independence.
The cynical view is that this is a political exercise designed to fail and to leave the excuse that “we would have fixed all this if only the (State Bureaucrats / Liberal Party / Greedy Ophthalmologists / insert your villain of the day) had let us so you can’t blame us – we tried and its not our fault.