ALISON VERHOEVEN Chief Executive AHHA
Value-based care: why it matters so much now
The twin challenges of last summer’s bushfires,
However, debate has arisen around issues such as:
swiftly followed by the COVID-19 pandemic,
• funding models (Is this just a cost-cutting
have exposed critical bottlenecks and
measure? Can a system focused on paying for
vulnerabilities in the Australian health system,
performance and activity shift to paying for
notwithstanding our relative success in meeting
value?)
healthcare needs during this period compared with many other nations. Our experiences addressing these challenges can provide a catalyst for reimagining healthcare, which will be required as we grapple with
• ability to measure health outcomes, including what matters to patients • how clinical leadership and patient engagement can be structured effectively into models of care • professional and provider resistance to
significant economic downturn, and its impacts
alternative workforce and payment models.
both on available funding for healthcare and on
The Addendum to the National Health Reform
the health and wellbeing of Australians.
Agreement provides a base for system innovation
The recently signed 2020–25 Addendum to the National Health Reform Agreement provides
across at least the first two of these issues. The provision for the Independent Hospital
important opportunities for new thinking in the
Pricing Authority to approve trials of innovative
way health is delivered, including opening the door
funding models, including bundled payments,
for system-wide attention to value-based health
is a significant opportunity for state health
care (VBHC).
departments and public hospitals to put forward
Much more than just a trendy catch phrase, value-based health care focuses in on the
proposals that focus on value rather than activity. The commitment to develop national approaches
outcomes that matter to patients, delivered at
to measuring health outcomes suggests new ways
a cost that is acceptable to patients and funders.
of thinking about performance and accountability
There is little argument that health providers
in our health system, beyond the traditional
want to provide care that improves the health
approaches to reporting on inputs and outputs.
and wellbeing of patients; that patients should
Importantly, better integration between the
be more engaged in deciding what they want to
primary and acute care sectors is flagged, through
achieve out of their healthcare; and that we all
specific provisions requiring Primary Health
should have an interest in doing this in the most
Networks and equivalent hospital networks
affordable way possible.
to formalise agreements around their shared
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The Health Advocate • NOVEMBER 2020
