Tue 26th Apr 2016
Selective efficiency
Published in Australian on Tuesday, April 26, 2016
The claim that there are huge unnecessary costs in the health system is one we have been pointing out for years. It is encouraging that the Federal Government is showing some limited interest in this issue. The approach however, is half hearted. It continues to ignore the $1 billion savings which could be achieved if our Pharmaceutical Benefits Scheme paid world market prices for drugs. Thus for the the breast cancer treatment Arimidex, the taxpayer pays 30 times more than in Britain, and for cholesterol lower drugs it costs 10 times as much in Australia than in both Britian and New Zealand. But pharmaceutical companies are good political donors.
If the Government really wants to address doctors’ charges rather than just complain about them it could employ more on salaries in public hospitals. That would save money, but it might mean that some Coalition voters would have to join the queues on public hospital waiting lists. That might be a bit too fair minded.
Tim Woodruff
Vice president
Doctors Reform Society