A capability review of the Department of Health and Aged Care says the healthcare system will face “enormous strains” over the next four years. 

A comprehensive departmental review, the first since 2014, has identified eight critical challenges and nine priority areas for improving capabilities.

The challenges outlined in the report encompass several critical issues. 

The first challenge is the escalating demand for aged care services, fueled by a growing ageing population, further exacerbated by a shortage of healthcare workers. 

Additionally, the shift from acute care to chronic disease management poses a significant challenge. 

The review also highlights the need to address issues within the healthcare workforce, particularly in primary care and rural settings. The rising costs associated with hospital care are another pressing concern.

Furthermore, the review emphasises the importance of staying at the forefront of technological developments, such as mRNA technology and artificial intelligence, while carefully considering associated costs. 

It calls for an increased focus on preventative healthcare measures and preparing for “global mega-trends”, including those outlined in the CSIRO's Our Future World report, which encompass issues related to climate change.

The eighth challenge highlighted in the report is the necessity of preparedness for future pandemics to ensure the department's readiness for any potential health crises.

The report says that addressing these challenges requires strengthened and integrated whole-of-system policy development capabilities. 

It also says that solutions will entail interactions across various components of the health and aged care system and cannot be effectively addressed in isolation. 

Additionally, it calls for enhanced collaboration with state and territory governments, as resolving these issues will often require substantial collective action involving multiple levels of government.

The capability review was led by notable figures in their respective fields, including former DAWE biosecurity head Andrew Tongue, former Boston Consulting Group public sector and healthcare practices leader Larry Kamener, and Infrastructure deputy secretary David Hallinan.

The full review is accessible in PDF form, here.