Healthcare Why Quality Matters Australian Healthcare Funding Summit

Healthcare – Why Quality Matters Australian Healthcare Funding Summit Michael Brennan, Chair Productivity Commission

Health spending and longevity Japan Life expectancy at birth (years) 83 Australia Switzerland CAN Norway 81 2015 79 Denmark 2015 77 US Mexico 75 73 71 1990 1970 69 0 1000 2000 3000 4000 5000 6000 7000 8000 9000 Spending per capita (constant PPP $) Australian Healthcare Funding Summit 2

Health spending and life expectancy United States Health spending to GDP (%) 17 14 Germany 11 Australia Switzerland Japan 8 Latvia Luxembourg Mexico 5 74 76 78 80 Life expectancy (years) 82 84 Australian Healthcare Funding Summit 3

Index of mortality rate (1886 = 100) A happy story about dying 100 80 80 Males 100 80 birth 80 65 65 20 60 40 60 50 30 20 Females 50 40 40 20 birth 0 1886 1916 1946 1976 30 2006 0 1886 1916 1946 1976 2006 Australian Healthcare Funding Summit 4

65 year olds used to have lower mortality rates than babies 3, 5 In 2017: mortality rates were 184% higher for 65 years olds cf babies Death rates relative to that at birth 3 2, 5 2 Age 65 1, 5 1 0, 5 In 1886: mortality rates were 65% lower for 65 years olds cf babies 0 1886 1896 1906 1916 1926 1936 1946 1956 1966 1976 1986 1996 2006 2016 Australian Healthcare Funding Summit 5

Expected age at death (years) What this means for life expectancy At 80 (Dyears=4) 85 At 65 (Dyears=8. 8) 75 At 50 (Dyears=13. 1) 65 At 20 (Dyears = 20. 7) Males 55 At birth (Dyears= 33. 5) 45 1886 1896 1906 1916 1926 1936 1946 1956 1966 1976 1986 1996 2006 2016 Australian Healthcare Funding Summit 6

Dying later means dying differently 100 Other Injury/poisoning 80 Cancer 60 Respiratory 40 Circulatory 20 Infectious disease 0 1907 1917 1927 1937 1947 1957 1967 1977 1987 1997 2007 2017 Australian Healthcare Funding Summit 7

Living longer does not always mean living healthy 75 Singapore Japan Years of healthy life (years) 73 South Korea 71 Canada 69 UK Australia New Zealand 67 Mexico 65 United States 63 9 10 11 12 Years of unhealthy life (years) 13 Australian Healthcare Funding Summit 14 8

80 US Australia New Zealand UK Norway Canada Luxembourg Switzerland Belgium Italy Ireland Iceland Germany Finland Austria Portugal Spain Sweden France Denmark Chile Colombia Slovenia Israel Greece Czech Republic Netherlands Turkey Mexico Japan South Korea Slovakia Singapore Poland Hungary Estonia Latvia Lithuania HALE/LE (%) The share of life in good health in Australia is close to the lowest in the OECD 88 87 86 85 84 83 82 81 Australian Healthcare Funding Summit 9

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