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Title: Healthcare system in Australia and Japan

Queena Ho

Curtin School of Allied Health, Curtin University

CMHL 1000 Foundations of Professional Health Practice

Michelle Schwager and Mamata Sherpa Awasthi

27 March 2024

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Contents

Page

Healthcare system in Australia

Healthcare system in Japan

Comparison of healthcare systems in Australia and Japan

Contrast of healthcare system in Australia and Japan

Conclusion

References

Appendix A concept grid

Appendix B search strategy

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Health Care System in Australia and Japan

Australia’s Healthcare model operates under the Medicare system which provides medical

services to all Australian citizens and permanent residents (AIHW,2020). Australia allocated

approximately 10% of the Gross Domestic Product (GDP) to overall health expenditure

(AIHW,2020). The Commonwealth Government primarily funds Medicare, offering universal

access to healthcare services, while the National Health Insurance Model allows private

practitioners to bill for services that are paid for out of pocket (AMA,2023). Life expectancy

and infant mortality rate are two health indicators commonly used in Australia (AIHW,2020).

According to Australia’s health 2020 Data Insight (AIHW,2020), the average life expectancy

is 83 years old, while the infant mortality rate is approximately 3 deaths per 1000 live births.

The Japanese healthcare model operates under the Universal health system which provides

medical services to all residents in Japan including foreigners and is funded by both taxes

and private donations (Kondo, 2022). The system operates as insured citizens covering thirty

percent of their medical and prescription expenditures and the insurer covering the

remaining amounts up to monthly and annual maximum limitations (Kondo,2022). In 2019,

10.9% of Japan's GDP was allocated to health expenditures (OECD,2021). The life

expectancy of Japan is among the highest in the world, the average life expectancy for male

is approximately 81 years and for female is around 87 years which is a long life expectancy

(Abridged Life Tables for Japan ,2022). Japan also has a low infant mortality rate, in 2019

Japan's infant mortality rate was 1.9 deaths per 1,000 live births(OECD,2021).

Comparing Australia and Japan’s healthcare models

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Both Australia and Japan have excellent healthcare systems that are marked by high GDP

percentages allocated to healthcare and universal coverage for all individuals. Despite Japan

being recognised for having a longer life expectancy with men average 81 years and women

87 years, Australia also surpasses other countries in terms of health outcomes, with an

average life expectancy of 83 years (AIHW,2020;Abridged Life Tables for Japan ,2022). Both

countries exhibit a great dedication to offering universal coverage to its population,

guaranteeing that every citizen, regardless of socioeconomic situation, has access to basic

healthcare services.
This is reflected in their healthcare models, where Australia's Medicare system and Japan's Univ

Furthermore, the integration of the public and private sectors within

healthcare systems is a shared strategy between Australia and Japan. Although the

foundation of both systems is provided by public healthcare services, private healthcare

services are also important in providing individuals who desire them with options for

specialised treatment. The healthcare system is with more flexibility and diversity that can

fulfil the population’s desire and needs. In summary, Australia and Japan have similar

healthcare systems that prioritise an accessible and comprehensive system for all the

residents ,both countries encourage equal opportunities and the best achievable health

results for all residents, no matter their socioeconomic status or place of residence, and

spend large amounts of their GDP on healthcare.

Contrast of healthcare system in Australia and Japan

Australia and Japan exhibit distinct differences in their healthcare systems,

particularly in their funding mechanisms, models, and health disparities. Firstly,

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Australia operates under a dual model, combining the Medicare system for basic

coverage with private health insurance for more extensive coverage. In contrast,

Japan's healthcare system is primarily employment-based, with additional support for

the unemployed. Different ways to finance healthcare services are reflected in the

variation in funding mechanisms. Secondly, Australia's healthcare model

incorporates elements of the National Health Insurance Model, allowing private

practitioners to bill for services out of pocket, while Japan's system is characterized

by a Universal Health System funded by taxes and private donations. These

differences in models influence the accessibility and affordability of healthcare

services for citizens in each country. Moreover, disparities in health outcomes differ

between Australia and Japan. Socioeconomic position has a major influence on

health outcomes and access to healthcare in Japan, which contributes to health

disparities. In contrast, Australia deals with a more complicated set of health

disparities that are caused by differences in geography and culture in addition to

socioeconomic issues. People in rural areas might have a hard time getting to the

doctor, and indigenous communities might face health problems because of their

culture and background. These variations indicate the need for specialised strategies

to address the particular difficulties and inequalities that exist in both nation's

healthcare system, guaranteeing fair access to medical care and better health

outcomes for all citizens.

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Australian Institute of Health and Welfare. (2020, July 23). Australia’s health 2020: Data

insights. Australian Institute of Health and Welfare.

https://www.aihw.gov.au/reports/australias-health/australias-health-2020-data-insights/

summary

Kondo, T. (2022). Report on the nature, characteristics, and outcomes of the Japanese

healthcare system. Global Health & Medicine, 4(1).

https://doi.org/10.35772/ghm.2021.01097

Abridged Life Tables for Japan 2022. (n.d.).

https://www.mhlw.go.jp/english/database/db-hw/lifetb22/dl/lifetb22-06.pdf

OECD. (2021). Health at a Glance 2021: OECD Indicators Highlights for Japan.

https://www.oecd.org/japan/health-at-a-glance-Japan-EN.pdf

Discussion paper: Rethinking funding models to align with population health

goals. (2023, December 5). Australian Medical Association.

https://www.ama.com.au/articles/discussion-paper-rethinking-funding-models-

align-population-health-goals

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