Australia has an easier go of health reform

He's the leader of a large industrial country who was swept into office after promising to reform the nation's health care system. And just recently, he did it; over the objections of a bloc of conservative state leaders. He's not Barack Obama. He's Australia's prime minister, Kevin Rudd. And he's now staking his re-election campaign on having achieved largely what he set out to do with regard to fixing the country's hospital system.

Australia already had a more nationalized system, in which taxpayers fund health care by paying a levy, and receiving doctors' care and access to state hospitals in return. But lately, Australians were growing increasingly concerned that health care costs were outstripping government funding, and they were, in turn, paying more for less. Rudd's solution: The central government will assume control of funding from the state's, and will also take a large chunk of the consumption tax that is typically reserved for states. The money will be put directly into the hospital system.

Though it's not quite as drastic an overhaul as the legislation recently passed here in the United States, it's the most radical change to Australia's system in decades. Naturally, there were opponents who felt that the states, not the central government, should be the ones determining how to spend tax dollars. It's a concern that's often echoed here at home.

And, also similar to the U.S. debate, there are those who think the reform efforts don't go far enough; one Australian newspaper said the government solution amounted to little more than "some fancy funding footwork between federal and state governments," when officials should also be concerned with overhauling the health information technology system in order to ensure efficiency and eliminate errors, thereby reducing costs even further. Reports The Australian: "Demand is growing as health insurers realise prevention, education and supported lifestyle changes make a huge difference to the financial bottom line. Last year, HCF signed a $100 million five-year deal with Healthways Australia for just this reason: HCF's 1.3 million members can log on to a My Health Guardian account to access trained health coaches such as dieticians, personal trainers and psychologists for individual advice."

Australia also faces an increasingly aging population, which will inevitably drive up the cost of health care. While there might still be more to do: health IT upgrades, Medicare reform, etc., Rudd's actions appear as if they could inject much-needed funds into its hospital system.

And while Rudd faces an opposition Senate and was forced to make compromises with conservative leaders in order to get the plan passed, the relative ease with which the entire thing took place only amplifies how nasty and mean-spirited the American fight over health care really was.

Photo credit: Australian government