Analysis Of Australian Health Care System With 2 OECD Countries From Financial Perspective Assessment Answer

pages Pages: 4word Words: 890

Question :

2.5.2 Report

Weight: 30% Type of Collaboration: Individual 

Format: Comparative health systems report. The report should be submitted as a word document. Length: 1,500 words Curriculum Mode: Report

A greater understanding of the Australian Healthcare system can be gained by comparing and contrasting the Aus-tralian system to the healthcare systems of other countries from a financial perspective.

Task and instructions

Write a critical analysis report of 1500 words (± 10%) on the following issue.

Compare and contrast the Australian healthcare system to the healthcare systems of two (2) other countries from a financial perspective.

When compared to other Organization of Economic Co-Operation and Development (OECD) member countries, Australia performs equal to or better than many other comparable countries on a range of measures. However, on other measures, such as obesity, Australia’s performance is ranked amongst the lowest of the member countries. Within this report, students must address the following areas:

- Choose two (2) other OECD member countries and compare and contrast the financial structure of the Australian healthcare system to the two (2) chosen systems. - From a financial perspective, compare and contrast the performance of the Australian healthcare system to the healthcare systems of two (2) other OECD member countries. - In what performance measures is Australia performing better, worse and equal to the other two (2) OECD countries? - What are the financial implications for the healthcare systems of Australia and the other two (2) countries of their performance in those measures? (I.e. are the countries ultimately spending more by not addressing specific measures?) - From a financial perspective, what, if any, are the challenges the healthcare systems facein providing equitable access to care to the people of those countries. - Provide recommendations for improvement of the Australian healthcare system with consideration to both financial and social implications. Students may find a list of OECD countries in the link located under the’Resources’ heading. Where appropriate, data should be expressed using charts and tables to illustrate comparisons, trends or other analysis. Criteria The report will be assessed on the following:

- Reporting and analysis of PBS data and costs. - Use of charts and or tables to explain recent information with accurate sourcing. - Understanding and critical analysis of the issues using evidence from the recent literature. - Quality of recommendations. - Academic writing skills, use of report format and APA. You should pay particular attention to academic writing to ensure better marks (such as how to use report format with numbered sections in text, how paragraphs need a theme, how to reference all content correctly in text with minimal use of quotations and use APA in the
references section). Correct spelling and grammar are expected and use of a grammar and spell check is recommended. This is because the number one generic competency expected of health graduates across many countries by health managers is communication skills, both written and oral. In addition, integrity and ethical conduct (which includes accurate
referencing and acknowledgement of sources) has been found the most important single competency in NSW Health. Marks for content in this assignment require that students engage in critical analysis, without which a mark of credit or higher cannot be awarded as per UWS Assessment Policy. This means that students must learn to weigh up strengths and weaknesses in academic argument, identifying shortcomings, limitations and what works well, and question how things are done now. This can be achieved by reading widely and finding current literature from refereed journal articles especially recent international literature. ”Current” means published in the last five years or from 2014 onwards unless the source is considered a seminal source and therefore worthy of inclusion. At least ten recent readings are required. Good use of appropriate additional good quality references will earn higher marks. The quality of evaluation and ideas to improve upon current practice also identifies students’ ability to critically analyse current literature and practice.

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Answer :

Report: Critical Analysis of Australian Health Care System with other 2 OECD countries from a Financial Perspective


The report analyses the Healthcare system in three OECD countries. It compares the performance of Australia in this sector to Canada and Switzerland.  The comparisons are made in Health Care sector from financial perspective. Thus the expenditure made by the people of the three countries on health care are observed and the money spend by them on various activities of health care are observed to see which country spends maximum. Then the results of the healthcare facilities on people of these countries in terms of healthy life and personal satisfaction is compared to see the relation if any. 

The study has led to a conclusion that the people fell more comfortable and happy when the  health care schemes are provided by the government as compared to the voluntary health care schemes they spend in.  In Switzerland people spend more per capital on health care as compared to Australia and Canada and still their perceived notion of good health is very low than the people of Australia and Canada.

It is observed that government supported healthcare schemes provide more security and satisfaction to the people as compared to compulsory or voluntary schemes. It could be due to the higher security offered by the government schemes or so perceived by the citizens of the country.

Therefore in order to make the citizens lead the more satisfactory and happy  life from health  care aspect and enhance their perception of good health the government of the country must ensure more government  run health care schemes. 

Performance Measurement in Health Care System

Health care quality and performance in countries depends upon the various factors like health care standards, incentives gives to the sector, innovation in the service delivery etc. All these factors require technological investment directly requiring the financial assistance and aids (OECD Conference, 2019). OECD has observed that its countries spend about one-tenth of the GDP on health care facilities. However not all countries spend same resources and get the same security and are able to help people to live healthier lives. The healthcare system of Australia and 2 other OECD countries namely Canada and Switzerland are analyzed here in term of their financial expenditure. The health care coverage needs financial assistance which varies across the counties. There are mainly three types of cover ages for health care:

-National health systems

- Single health insurance funds

- Multiple health insurance funds/companies

While Australia and Canada has National Health System as the main source of health coverage plans, Switzerland has multiple health insurance funds/companies. Health care expenses covered by the government schemes, compulsory health insurance, out of pocket expenses and voluntary health insurance in percentage  for the above three countries is as follows in 2015:

Government schemes
Compulsory Health insurance
Voluntary health Insurance


Source: (OECD Conference, 2019, Pg. 10)

Health Care spending – The data on the spending made by various countries on healthcare is depicted in the chart below.

Health Care spending

The Chart shows that Australia and Canada have the similar health spending when measured in US dollars for the period from 2014 to 2018. The two countries spend almost equally in total amount spend in healthcare.  The data also shows that the proportion of spending  voluntary or government/compulsory healthcare expenses is also same for the two countries. However the comparison of Australia with Switzerland   shows that the total expenditure in healthcare in Switzerland is more than Australia by Significant amount. Similarly the spending on voluntary and government/compulsory healthcare facilities is also more in Switzerland as compared to Australia.

 The per capital spending in Australia on healthcare  is $50005.32 for 2018. The amount is $4974.32 in Canada and is $7316.6 in Switzerland. Switzerland is second only to United states in total per capital spending on healthcare (OECD, Data- Health Spending, 2019). 

Similarly the review of data on spending on Pharmaceutical id observed for the three countries. The Pharmaceutical spending covers the amount spent on medicines prescribed by the hospitals or doctors to the individuals and also include the expenditure on self medication in the form of over-the-counter products. The amount spent includes the wholesale or retail margins and the value-added tax.   The amount is presented in USD per capita as percentage of total spending on health  care.

 USD per capita as percentage of total spending on health care

It is observed from the above chart  that Switzerland spend least on pharmaceutical out of its health care expenditure and Canada spends  maximum share of its healthcare expenditure ion pharmaceuticals. 

In order to evaluate the impact of these financial spending on healthcare by the three countries the key indicators of health status are observed for the three countries. 

The data on perceived health status by socio-economic status shows (stats.oe.aspx?DataSetCode=SHA#):

Good/very Good health of all aged 15+ as in 2017:

  • Australia has 84.1% of individual by population falling under this category
  • Canada has 81.1% of individuals falling under this category 
  • Switzerland has 68.2% of   individuals falling under this category 


The following has been reviewed from the data on Health care provided by the OECD website on the OECD countries being Australia, Canada and Switzerland:

  • Canada spends maximum on the government health schemes as compared to Switzerland which spends least on healthcare in government schemes. Australia is slightly less than Canada on spending on government schemes. Canada spends least in compulsory health insurance schemes while Switzerland spends maximum on compulsory health insurance. Voluntary health insurance expenditure is maximum in Switzerland
  • The per capital spending in Australia on healthcare  is $50005.32 for 2018. The amount is $4974.32 in Canada and is $7316.6 in Switzerland. Switzerland is spending maximum on healthcare. 
  • For Pharmaceutical expenditure, it is observed that Switzerland spend least on pharmaceutical out of its health care expenditure and Canada spends  maximum share of its healthcare expenditure ion pharmaceuticals. 

Based o these financial expenditure details it is observed that Switzerland spends maximum on health care as the percentage of GDP and the most of the expenditure in form of voluntary healthcare spending.  This shows that the people of Switzerland do not trust government health care schemes much or the country doesn’t have well developed government run health care system as it present in Australia and Canada. Canada and Australia are very much similar in their amount of spending on healthcare as well as sending on government health care schemes. 

Given various indicators and parameters to evaluate the effectiveness of the healthcare system in a country we have used  the indicator of perceived health status by socio-economic status for all individuals of above the age of 15 years in the countries. The indicator shows that Australia has the highest percentage of population of 84.1% falling in the good/very good category. It is closely followed by Canada with 81% while Switzerland has least percentage of 68%.

It is concluded from the above that even though Switzerland spends highest on health care the perceived health status of the people there is very low as compared to Australia and Canada. The difference in the nature of healthcare expenditure of these countries is observed as the spending in government schemes in Australia and Canada while in voluntary healthcare schemes in Switzerland.

Thus it can be concluded that the government schemes in countries are better in providing the perceived status of good health as compared to the voluntary schemes. The people are more satisfied when the healthcare schemes are provide by the government of the country as compared to the health care schemes that they opt for voluntarily.

It is recommended that the government should provide more healthcare facilities to improve the confidence of the people in their health care system. This way the less expense by the people in healthcare will result in higher satisfaction and healthy life. 

The amount of expenditure made on healthcare is not the only factor to ensure the good health care facilities in the country or happy life of the people it is the type of health care schemes available to them which contributes to their satisfaction on health acre.