The concept is certainly gaining increasing prominence around the world. Based on the research of Harvard’s Michael Porter, VBHC provides a framework for restructuring health care systems with the overarching goal of value for patients.
The World Economic Forum has calculated that, despite advancements in medical knowledge and innovation, society is not getting the full value of the annual AUD$8 trillion spent worldwide on healthcare.
Australia’s healthcare expenditure is $170 billion, representing 10.3% of GDP, meaning one in every $10 in the economy is being spent in the health sector.
MTAA CEO, Ian Burgess said that although Australia has a very good health system, with increasing pressure on our healthcare dollar, our current service delivery system provides fragmented care, siloed funding and differences in outcomes and clinical practices.
“If Australia seeks to become the “healthiest nation on earth” it’ll need to transform its healthcare system to be fit for the 21st century,” said Mr Burgess.
Some of the speakers noted the challenges in the current environment of elevating a value and outcomes debate when the Government has decided to remove rewarding superior clinical performance as part of the Prostheses List Agreement with the MTAA.
Healthcare should be driven by a relentless focus on delivering outcomes that truly matter to patients and to the community, in a financially sustainable manner.
The day started with Tessa Kowaliw, Women‘s Healthcare Australasia and patient advocate. It set the scene for much of the day by ensuring patients were front of mind by making sure we address outcomes that are meaningful to patients.
Mr Burgess said: “All stakeholders need to ask themselves “what will this change mean?” or “when will it happen?” but also “how do we get there?”
“The medical technology industry makes a highly significant contribution to the quality of healthcare in Australia in helping people live longer, healthier and more productive lives.
“To prepare for this changing environment, it will be important for medical technology companies to understand, demonstrate, and clearly articulate how their offerings can not only improve patient outcomes but also create value for healthcare stakeholders.”
All presenters agreed the full implementation will take time due to complexity and will require significant change and reforms.
PulseLine is pleased to say for those that missed the event in the coming weeks we will be releasing video interviews with the presenters.