The Department of Health and Aged Care capability review has cautioned the healthcare system will face “enormous strains” over the next four years.
The departmental review, the first since 2014, identified eight critical challenges and nine priority areas for capability improvement.
The challenges include growing demand for aged care in an ageing population compounded by increasing workforce shortages.
Related to this is the challenge of managing the shift from acute care to chronic disease management.
Other challenges were addressing issues across the health workforce, particularly in primary care and rural settings, and the growing cost of hospital care.
The review also warned that the department needs to be on the front foot in technological developments such as mRNA technology and AI while still considering costs.
There should also be an increased focus on preventative health care and preparing for “global mega-trends” outlined in the CSIRO’s Our Future World report. Trends included the impact of climate change.
The eighth challenge is being prepared for the next pandemic to ensure the department is “battle ready”.
“These challenges require strengthened and integrated whole-of-system policy development capabilities, as solutions will involve interactions between various parts of the health and aged care system,” the report stated.
“They cannot be addressed effectively in isolation. Enhanced collaboration with the states and territories will also be essential because, in most cases, resolving these issues will require significant collective action involving the Australian, state and territory governments.”
Former DAWE biosecurity head Andrew Tongue, former Boston Consulting Group public sector and health care practices leader Larry Kamener and Infrastructure deputy secretary David Hallinan led the review.
The review said staff “have good reason to be proud of their agency and feel a sense of great accomplishment”.
The department’s efforts during the COVID-19 pandemic were highly praised.
“While there is no process without lessons, the outcomes achieved for Australia were world-leading,” the reviewers said in the foreword.
“This environment also helped establish a very strong sense of identity and outcome focus within the department, and secure strong foundations for culture and leadership.”
Nine priority areas were identified for capability improvement:
- Integrated strategic policy development capabilities
- Using data to inform policy
- Systemic consideration of the health and aged care workforce
- Increased knowledge about the providers the department funds and regulates
- Readiness for future healthcare delivery
- Learning the lessons from COVID-19
- Collaborative and enduring relationships with the states and territories
- Improved communication and engagement with the community
- Building and empowering the mid-level of the department
In response to the review, former secretary Brendan Murphy said the department would work with the government to address the review findings, including resourcing issues.
“The delivery of the capability review report is timely as the Department of Health and Aged Care resets itself following the challenges of the COVID-19 pandemic, the transition to a new government and now to a new secretary, Blair Comley PSM,” Murphy said.
“The last few years have been both challenging and rewarding for the department.
“The intellect, talent and dedication of staff is impressive, and they have delivered outstanding collective achievements.”
Capability reviews were brought back recently. The APSC was assessed last month.
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