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Unhealthy budget outcome

Spokesperson: Australian Association of Pathology Practices
Date: Thursday, 14 May 2009
Category: Budget 2009
   
Australians will be severely disadvantaged as a direct consequence of the Government's shock announcement to slash at least $416 million over four years from essential pathology services in the Federal Budget 2009-10, according to the Australian Association of Pathology Practices.

The Australian Association of Pathology Practices (AAPP) is the peak national body for providers of private pathology services in Australia.

“The Government is clearly walking away from its commitment to a world class health system, underpinned by access and affordability, through this short-sighted and unjust Budget measure,” said Dr Ian Clark, AAPP President today.

"These massive funding cuts to essential and cost-effective pathology services make no health or economic sense. They will simply result in increased rates of undiagnosed illnesses, poorer management of chronic conditions and, over the long term, will threaten the future viability of Australia's health system.

"The Australian Association of Pathology Practices, its members and associated health professionals, are committed to maintaining a high standard of health services for all Australians and have worked hard to give Australians access to the highest quality service at the lowest possible cost.

“Currently, pathology has a higher rate of bulk billing (90%) than any other medical specialty, including general practice. Over the past eight years, the pathology sector has saved the Government and the Australian community over $3 billion through increased efficiencies, while providing greater access to services for people in rural and remote communities.

However, these gains are all now at risk due to this Government and its unprecedented Budget measures.

"These cuts reveal the lack of understanding within government of the significant investment required to establish and maintain the necessary infrastructure for a pathology practice.

Pathology practices operate over 2,100 collection centres and almost 400 laboratories, have developed highly sophisticated information technology systems, and employ 36,000 highly skilled staff.

“When funding cuts are made, pathology practices will be forced to reduce infrastructure spending with a resulting impact on the level of service they can provide to the community.

Unfortunately, some practices may also have to reduce their number of employees to remain viable. Many small and not-for-profit pathology providers will have difficulty continuing to operate.

"The Government does not understand that developments in medical technology within this sector, including automation, have already been adopted and the efficiency gains passed onto patients. Currently the largest costs facing pathology practices relate to labour and there is little scope for new technologies to reduce the need for a highly trained and skilled workforce.

"While we understand that the Budget is under increased pressure this year, Australians should not have to pay for the global financial crisis through reduced access to health services and increased health care costs. The ultimate outcome of these short-sighted budget cuts will be a less efficient and lower quality health system, increased gap payments made by patients and poorer health outcomes for those Australians most at risk of illness and disability. This Government has reneged on a key policy of maintaining access and affordability with regard to essential medical services," Dr Clark said.