1

Analyzing and Recommending Health Care System Reform Options

Analyzing and Recommending Health Care System Reform Options

Nadhirah Lutchminarain

BUS-FPX3026- Foundations and Future of Health Care Delivery Management

Professor Thomas Neal

June 21, 2021

 2
Analyzing and Recommending Health Care System Reform Options

Introduction

Different countries have different ways to handle their health care systems. In this paper, I will

be comparing the United States (U.S) health care system and Australia's health care system. I

will be looking at their similarities and differences in structures, approaches, and concepts by

considering the political, economic, and consumer-driven forces.

Analyzing the U.S Heath Care System vs the Australian Health Care System

The structure of the health care system in the U.S is completely different from that of Australia.

The U.S has a market-based system. In this system, people have to pay for their own health care

and cannot rely on insurance. The U.S makes it mandatory for every American to have health

insurance from the age of eighteen up until the age of sixty-five (Kaiser Family Foundation,

2013). Australia has social insurance or a government-financed system where the government is

responsible for working out what's the best way to provide medical care for its citizens at an

affordable price. All Australian citizens remain on Medicare from birth until death (Australian

Government Department of Health and Ageing, 2013).

In the U.S health care structure if a citizen wants to see a doctor they must pay for it on their own

unless they are covered by their insurance company. The economy also plays a role in both

country's health care by having people work for less, have less money in the bank, and having

less coverage. The U.S has a supply-side economy that focuses on the production of healthcare

goods. In this type of economy, there are more jobs available in healthcare because they are

needed by everyone (Hayward, 2012). Australia's economy has both a demand and a supply-side

because it is based on service industries instead of goods making industries (Macquarie

Dictionary, 2013).
 3
Analyzing and Recommending Health Care System Reform Options

Australian users the concept of universal healthcare. The Australian government has decided that

this type of system is the best way to provide care for its citizens at a low cost. Australia has a

governmental system. This means that Australia's federal government owns all hospitals and

pays their employees. Services provided by the hospitals are financed by various taxes and fees

(Australian Government Department of Health and Ageing, 2013). Whereas, in the U.S, there are

many private health care organizations that pay for all hospital bills and other medical services

(The Encyclopedia of American History, 2007). Accessibility in Australia is very high compared

to that of the U.S mostly because of universal healthcare in Australia.

Due to the political aspect, the U.S health care system is different from Australia because of the

government. The U.S is a federal representative democracy and has a two-party political system.

Each state has different delegates that vote for the president, vice president, members of

congress, and senators (The Encyclopedia of American History, 2007). Australia is ruled by a

democratic government that consists of three independent branches. The government in Australia

also respects the rule of law and its citizens' rights to freedom (Australian Government

Department of Health and Ageing, 2013).

The differences in the economy and its relation to their different healthcare systems is that

Australia's economy mostly services, whereas the U.S economy is more goods, commodities,

and services (Australian Government Department of Health and Ageing, 2013). The reasons for

the differences in their economies are that Australia has a supply-side market because it based on

service industries. This means that many jobs in healthcare are available because there is a high

demand for them. The U.S has a demand-side of the economy because it focuses on the

production of health care goods (Hayward, 2012). According to Haywood (2012), there are jobs
 4
Analyzing and Recommending Health Care System Reform Options

available in healthcare because it is needed by everyone. However, when we look at the health

care system in both countries, we see some similarities but also some differences.

The changes that I personally feel should change would be to make the government recognize

that there are differences in the health systems of Australia and the U.S therefore there are

changes that need to be made. Part of my argument is that the government should treat U.S

citizens the same way as Australian citizens. In terms of things such as health care, even though

the health care system in the U.S is a lot different than the one in Australia this does not mean

that they should treat them with less than Australian citizens because when looking at it they are

all equal right? This would also give me a reason for why I disagree with the statement

"Australia's health system works better than those in America".

If these changes are made then managers could be given more power. This would give them the

power to make decisions without having to wait for a committee or a big boss to make the

decision for them. The New Tax System looks like it would be very beneficial to Australia while

being beneficial for the US. It allows people to work hard and focus on healthy and productive

things that will help both companies and their employees get ahead in life. The system would

also force other countries around the world to be competitive with Australian workers which

would ultimately benefit Australia's economy and not hurt it. The New Tax System will help

Australia's economy by increasing its productivity, therefore maintaining a competitive

advantage over other economies.

In conclusion, the political, economic, and consumer-driven forces have influenced both

countries' health care systems. In the end, Australia and the United States have a lot of

similarities with their health care system but also some differences. The main difference is that

Australia has social insurance or government-financed system where U.S citizens are left to deal
 5
Analyzing and Recommending Health Care System Reform Options

with their own issues instead of being covered by insurance. This paper will show how similar

and different the health care systems of the United States and those in Australia are, by

considering the political, economic, and consumer-driven forces as well as the environmental

conditions of both countries.

 6
Analyzing and Recommending Health Care System Reform Options

References

Australian Government Department of Health and Ageing. (2013). Australian health system.

Retrieved from http://www.health.gov.au/internet/main/publishing.nsf/Content/health-pubhlth-

strateg-cntr1-toc~health-pubhlth-strategies1

Haywood, K. (2012). How Australian health care works. Business Insider AU, 48(12), 1-3(11).

Retrieved from http://www.businessinsider.com/australian-healthcare-system-works-2012-1

Hayward, A. (2012). US healthcare costs grow at slower rate than GDP for the first time in 50

years. The Sydney Morning Herald, pp 1–2(13). Retrieved from http://www.smh.com.

The Encyclopedia of American History, 1607–2008, ed., Robert McElvaine, (New York:

Infobase Publishing), 676pp (2007). America Votes: A Handbook of Modern American

Presidential Election Statistics, 1789–1972. New York: Macmillan Library Reference USA.

Macquarie Dictionary (2013). Supply-side economics. Retrieved from

http://macquariedictionary.com/dictionary/supply-side_economics