Catholic Health Australia has released a study which has found that up to 500,000 people could avoid chronic illness, $2.3 billion in annual hospital costs could be saved and Pharmaceutical Benefits Scheme prescriptions cut by 5.3 million if a better understanding of the determinants of health issues was to be found.

 

The main findings in the report are:

  • 500,000 Australians could avoid suffering a chronic illness;
  • 170,000 extra Australians could enter the workforce, generating $8 billion in extra earnings;
  • Annual savings of $4 billion in welfare support payments could be made;
  • 60,000 fewer people would need to be admitted to hospital annually, resulting in savings of $2.3 billion in hospital expenditure;
  • 5.5 million fewer Medicare services would be needed each year, resulting in annual savings of $273 million;
  • 5.3 million fewer Pharmaceutical Benefit Scheme scripts would be filled each year, resulting in annual savings of $184.5 million each year.

 

The Cost of Inaction on the Social Determinants of Health found that voidable chronic illness costs the Federal Government $4 billion each year in welfare payments and the national economy $8 billion in lost earnings.

 

Catholic Health Australia (CHA) commissioned the University of Canberra's National Centre for Social and Economic Modeling (NATSEM) to calculate savings the Federal Government could achieve if the 2008 World Health Organisation (WHO) action plan on social determinants of health was implemented.

 

Catholic Health Australia CEO Martin Laverty said "The lowest 20 per cent of income earners suffer twice the amount of chronic illness than the highest 20 per cent. NATSEM's study quantifies the cost of avoidable poor health to the Australian economy.

 

"The WHO in 2008 detailed how countries like Australia should tackle health inequalities. Now we have evidence it makes economic sense to implement the WHO proposals. In releasing the NATSEM report, we seek a Senate Inquiry to detail how Australia can best implement the WHO's action plan."

 

The Federal Government has announced the Senate Standing Committee on Community Affairs to will conduct an inquiry into the issues proposed in the study.

 

Mr Butler said the Senate Committee will be able to draw on this study as well as international contributions, including those made through the World Health Organisation and the Rio Political Declaration of 2011 which confirmed Member States’ commitment to take action to address the social determinants of health.

 

The report can be found here