Institute For Integrated Economic Research-Australia



The Australian Health System in 2022

What has changed in the last two years … what do we need to do differently?  

We have experienced health worker exhaustion, medicine shortages, supply chain disruptions, loss of domestic manufacturing capability, tribalism and cultural impediments to teamwork and Federal versus State governance disconnects.  The 2022 reality being faced by our new Health Minister must be overwhelming. In the absence of a comprehensive inquiry into our handling of the pandemic, there appear to be few lessons identified, fewer acted upon and even less actually learned.  Thankfully, the new Labor Government has committed to such a review. 

To help produce a “snapshot” of our health system over the year we gathered 21 health domain experts and asked them about their current concerns.  The challenge does not seem to be defining ‘what’ needs to be done, but rather defining ‘how’ it needs to be done, prioritised, and actioned as an overall system.  There is still no apparent integrated risk analysis, health system strategy and plan that could guide an integrated health system roadmap. 


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We are failing to prepare for the emerging risks of Coronavirus variants in 2022/23

The Federal Government needs to address emerging challenges such as the need for annual COVID-19 boosters, dealing with COVID-19 variants, and the potential diminution of effectiveness of the current vaccines and the next pandemic. It needs to support mRNA research and manufacturing in Australia if we are to have a resilient sovereign capability. It needs to act now.


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The Australian Healthcare System -

‘just in time’ or ‘just in case’?

The Coronavirus pandemic has exposed a global lack of resilience as a result of a collective failure to assess and act on national risks and vulnerabilities in the face of a rapidly changing world. Australians have reacted very well to the pandemic; but were we adequately prepared for this or a range of other significant risks that have either already manifested or could still eventuate?

The pandemic has brought into sharp relief the inadequacies of Australia’s healthcare system in the broadest sense. The professionalism of our health practitioners has been extraordinary; however, the problem does not lie with them. Rather the ‘health system’ has been found wanting. The “just in time” free market philosophy may have resulted in cost efficiencies, but it has also resulted in significant erosion of healthcare systems resilience as our nation gradually lost manufacturing capacity to the point where we now import more than 90% of our medicines and virtually all of our Personal Protective Equipment, whilst at the same time having no stockholding mandates. Lower cost can come at a very high price in a crisis.

Our politicians have rightly applauded our nation’s health workers outstanding performance and dedication to their duties throughout the pandemic. However, plaudits are not enough. We, as a society, owe it to our healthcare professionals to do whatever it takes to enable and empower them to do their jobs, to ensure our healthcare system is genuinely resilient. The health and wellbeing of all Australians, and therefore the security of our nation, depend on it.


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AUSTRALIA’S MEDICINE SUPPLY

- is our Health a National Security / Resilience Issue ?

Australia imports over 90% of medicines and is at the end of a very long global supply chain making the nation vulnerable to supply chain disruptions. The TGA has acknowledged these supply chain risks when they report that at times there may not be enough of a specific medicine in the Australian marketplace, leading to potential weaknesses in supply.

Australia is particularly vulnerable to medicine shortages arising from factors outside our control. These factors can include manufacturing problems, difficulties in procurement, political instability, pandemics, another global economic crisis and a range of natural disasters. The current Coronavirus emergency is an example of this.

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Dr Simon Quilty’s Article on Australia’s Drug Supply Chain Risks

Australia’s supply chain for the entire range of healthcare products is incredibly complex. There are, of course, national and international regulatory frameworks to ensure quality and ongoing supply. However, these were set up more than three decades ago. Are they still fit for purpose?


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Shortages of personal protective equipment, medical devices, and medicines – what’s happening in Australia?

The COVID-19 pandemic has seen a significant increase in public discussion about medical supply chains in general, and Australia’s exposure to shortages of critical medical items because we are at the end of a long and complex global supply network.

The Australian National Strategic Stockpile of medicines and personal protective equipment (referred to as PPE) has also been in the headlines. Unfortunately, the shortages of critical PPE for frontline healthcare workers would suggest that the National Strategic Stockpile is falling well short of the need …

The scrambling by the Government, and indeed a number of not-for-profits, to procure PPE (especially masks) from whoever and wherever they can, should be a lesson for those responsible for the future stocking of the stockpile.

What could Australia do differently to be ready when, not if, the next pandemic strikes? And it is very unlikely we will be waiting 50 or 100 years for it to occur. As the financial advisors say - past performance is not a guarantee of future results ...