Read The Times Australia

Daily Bulletin

Safe seat syndrome? Why some hospitals get upgrades and others miss out

  • Written by: Anam Bilgrami, Senior Research Fellow, Macquarie University Centre for the Health Economy, Macquarie University

On his campaign trail, Prime Minister Anthony Albanese pledged A$200 million to upgrade St John of God Midland Public Hospital in Perth. He promised more beds and operating theatres, and a redesigned obstetrics and neonatal unit.

It followed other recent election promises from the Labor government, including $120 million for new birthing facilities at Sydney’s planned Rouse Hill Hospital and $150 million to build a health centre in southern Adelaide.

New and expanded health facilities are welcome in fast-growing communities. But are hospital funding pledges in election campaigns based on health-care or political needs?

Does pork-barrelling drive health funding decisions?

Labor and the Coalition have faced allegations of pork-barrelling this election campaign.

Pork-barrelling means using public funds to target specific electorates to win votes, rather than allocating resources based on need. Four in five Australians consider pork-barrelling to be corrupt.

Former New South Wales Premier Gladys Berejiklian suggested pork-barrelling was “business as usual” in her government.

It also seems to occur at the federal level. The Australian National Audit Office found a $1.25 billion Community Health and Hospitals Program implemented by the former Morrison government “fell short of ethical requirements” and deliberately breached Commonwealth grant guidelines.

Of the 63 major projects funded, only two were rated “highly suitable” – the usual benchmark for shortlisting. In fact, most approved projects were picked by the government outside of the established expression of interest processes.

Leaders' debate on April 8.
Both Labor and the Coalition have been accused of using public funds to target specific electorates to win votes. Jason Edwards/AP

Who funds and manages public hospitals?

The National Health Reform Agreement makes states and territories responsible for managing public hospitals. States and territories contribute around 58% of hospital funding. They also oversee planning and infrastructure.

Local hospital networks help plan and implement capital projects such as new hospitals and facility upgrades.

Under the National Health Reform Agreement, the Commonwealth government also contributes public hospital funding through:

  • activity-based funding. This is tied to the number and type of patients treated

  • block funding for smaller regional and rural hospitals

  • public health funding for initiatives such as vaccination programs.

The reform agreement outlines the Commonwealth’s responsibility for supporting public hospital services. But it doesn’t restrict the Commonwealth from making hospital infrastructure promises.

The Commonwealth often pledges direct hospital funding through supplementary agreements or ad hoc initiatives. Earlier this year, it announced an additional one-off $1.7 billion payment to ease pressure on public hospitals.

State planning vs federal politics: who decides?

States use formal planning frameworks to plan and prioritise health infrastructure projects. NSW Health, for example, applies a structured Facility Planning Process for projects over $10 million. This considers local population needs, health and community benefits, costs and workforce capacity.

These types of frameworks help ensure health capital investment decisions are transparent and evidence-based.

What is less transparent is how the Commonwealth decides which specific hospitals to pledge money to, particularly during election campaigns.

While some federal funding announcements may align with state priorities, picking one hospital over another comes with an “opportunity cost”. For every community that benefits from a new or upgraded hospital, another potentially higher-need community may miss out.

To prevent Commonwealth funding decisions being swayed by political priorities, more transparent processes for setting priorities and making decisions are needed.

Peter Dutton at a new housing estate in Upper Kedron, north western Brisbane
Picking one project in an election means another loses out. Mick Tsikas/AAP

What would a better system look like?

The way funds are allocated to medicines listed on the Pharmaceutical Benefits Scheme (PBS) provides the federal government with an exemplary approach to good health-care investment decisions.

The Pharmaceutical Benefits Advisory Committee (PBAC) provides independent advice to the Minister for Health on whether the government should allocate millions to new medicines. The PBAC uses rigorous, transparent processes to make listing recommendations based on patient need and cost-effectiveness.

Federal government hospital infrastructure funding decisions should also follow open, competitive, merit-based processes.

Prioritising evidence and having transparent decision-making guidelines would mean funding is more likely to be allocated based on the greatest population need rather than electoral considerations.

Other ways to improve federal government hospital funding decisions may include:

  • incorporating nationally agreed principles for hospital capital funding in future National Health Reform Agreements

  • increasing transparency. This could be achieved through a national public register of hospital development proposals, ranked by urgency and need

  • strengthening safeguards on election-period pledges. This could improve disclosures and ensure hospital funding decisions align with independent needs assessments.

More hospitals or better prevention?

Former St Vincent’s Health CEO Toby Hall put it bluntly:

If Australia is to make the most of its healthcare future, it will likely need fewer hospitals, not more.

He pointed to Denmark, which cut its number of hospitals by 67% over 1999–2019. This was achieved by shifting as many services as possible from hospitals to other types of health care including primary care, health centres and outpatient clinics.

While more hospitals in Australia may be inevitable as the population ages, health policy should also focus on keeping people out of hospital in the first place. That means investing in prevention, early intervention and technology to support care at home.

Australia lags behind other wealthy nations in this space, ranking 20th out of 33 OECD countries in per capita spending on prevention. It ranks 27th when measured as a share of total health expenditure.

Some local health districts are showing what’s possible. This includes using home monitoring to help people manage chronic conditions. These kinds of innovations can improve health and reduce pressure on hospital infrastructure.

While new hospitals and wards make for compelling election promises, a better health system will come not just from “bricks and mortar”. It will come from smarter investments in prevention, early intervention and innovative care that keeps people healthier and out of hospital.

Authors: Anam Bilgrami, Senior Research Fellow, Macquarie University Centre for the Health Economy, Macquarie University

Read more https://theconversation.com/safe-seat-syndrome-why-some-hospitals-get-upgrades-and-others-miss-out-253750

Business News

Reducing Sales Friction Through Centralized Content Delivery

Sales friction appears whenever buyers or sales teams face unnecessary obstacles in the buying journey. It can happen when information is hard to find, when messaging feels inconsistent, when product ...

Daily Bulletin - avatar Daily Bulletin

Why Choosing the Right Bollard Supplier Matters for Australian Businesses and Public Spaces

From busy CBD streetscapes to sprawling warehouse loading docks, bollards have become one of the most essential safety and security fixtures across Australia. Whether protecting pedestrians from veh...

Daily Bulletin - avatar Daily Bulletin

Why Modular Content Is Transforming Modern Marketing Teams

Modern marketing teams are expected to produce more content than ever before. They need to support websites, landing pages, email campaigns, social channels, product pages, sales enablement material...

Daily Bulletin - avatar Daily Bulletin

Everything You Need to Know About Getting Support from Optus

Whether you've been an Optus customer for years or you've just switched over, at some point you'll probably need to contact their support team. Maybe your bill looks different from what you expected. ...

Daily Bulletin - avatar Daily Bulletin

The Marketing Strategy That’s Quietly Draining Sydney Business Owners’ Bank Accounts

Sydney businesses are investing more in digital marketing than ever before. The intention is clear. More visibility should mean more leads, more customers, and steady growth. However, many business ...

Daily Bulletin - avatar Daily Bulletin

Why Mining Hose Solutions Are Essential For High-Performance Industrial Operations

In environments where the ground itself is constantly shifting, breaking, and being reshaped, every component must be built to endure. Mining operations are among the most demanding in the industria...

Daily Bulletin - avatar Daily Bulletin

The Reason Talented Teams Underperform

If you’re in business, you might have seen it before. A team of capable and smart people just suddenly slows down, and things start spiraling out of control. On paper, everything looks perfect, but ...

Daily Bulletin - avatar Daily Bulletin

Why More Aussie Tradies Are Moving Away From Paid Ads

Across Australia, a lot of tradies are busy. There’s no shortage of demand in industries like plumbing, electrical, landscaping, and building. But being busy doesn’t always mean running a smooth or...

Daily Bulletin - avatar Daily Bulletin

Why Careers In The Defence Industry Are Growing Rapidly

The defence sector has evolved far beyond traditional roles, opening doors to a wide range of opportunities across technology, engineering, intelligence, and operations. This is where defense industry...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

Australia’s Best Walking Trails and the Shoes You Need to Tackle Them

Australia is not short on spectacular walks. You can follow ocean cliffs in Victoria, cross ancien...

Why Pre-Purchase Building Inspections Are Essential Before Buying a Home in Australia

source Have you ever walked through an open home and started picturing your furniture, family d...

5 Signs Your Car Needs Immediate Attention Before It Breaks Down

Car problems rarely appear without warning. In most cases, your vehicle gives clear signals before...

Ensuring Safety and Efficiency with Professional Electrical Solutions

For businesses in Newcastle, a safe and fully functioning workplace remains a key part of day-to-d...

Choosing The Right Bin Hire Solution For Hassle-Free Waste Management

When it comes to managing waste efficiently, finding the right solution can save both time and eff...

Why Cleanliness Is Critical In Childcare Environments

Children explore the world with curiosity, often touching surfaces, sharing toys, and interacting ...

What to Look for in a Reliable Australian Engineering Partner

Choosing an engineering partner is rarely just about technical capability. Most businesses can fin...

How to Choose a Funeral Home That Supports Families with Care

Choosing a funeral home is rarely something families do under ideal circumstances. It often happen...

Why Premium Coffee Matters in Modern Hospitality Venues

In hospitality, details shape perception long before a guest consciously evaluates them.  Lightin...