In this task, you are required to determine how much is currently spent on curative and preventative approaches. Using this information and the knowledge that you have about the effectiveness of health promotion, determine how much should be spent on curative and preventative approaches. Justify your funding allocation with evidence.
Linking Question- What is the value of prevention vs cure for young people's health issues?
Prevention relates to any activity that seeks to address a health issue before it develops into major concern for the Australian population. Prevention activities include health promotion activities such as advertising campaigns and education in schools. These activities aim to reduce risk behaviours and promote protective behaviours.
Cure relates to any activities that seek to treat a person with a disease through medication, surgery or rehabilitation. Often curative approaches do not address the underlying causes, for example, risk behaviours like smoking. Hospital services, doctors and pharmaceuticals are areas where a large portion of health spending is directed to treat those with disease.
The majority of expenditure (money spent) in Australia on health is directed towards curative services such as hospitals, medications and surgical procedures.
The Australian government could save a lot of money in the long term if it invested more in preventative approaches like health promotion and strategies to educate the population about the risk and protective behaviours.
Health expenditure is defined as the amount of money spent (expenditure) on health goods and services, including investment in equipment and facilities.
Expenditure on health is traditionally analysed in terms of recurrent expenditure and capital expenditure.
Recurrent expenditure generally includes money spent on health goods (such as medications and health aids and appliances), health services (such as hospital, dental and medical services), public health activities, and other activities that support health systems (such as research and administration).
Capital expenditure is expenditure on fixed assets, such as new buildings and hospitals.
Australia spent an estimated $241.3 billion on health goods and services in 2021–22 – an average of approximately $9,365 per person. The real growth (adjusted for inflation) in total health spending (recurrent and capital) was 6.0% more than in 2020–21. This was higher than the average yearly growth rate over the decade to 2021–22 (3.4%).
During 2021–22, the greatest increases in recurrent spending were for:
primary health care, a $8.3 billion (10.9%) increase in real terms, which was associated with increased spending related to the pandemic, such as the COVID-19 vaccines, and personal protective equipment.
hospitals, a $4.2 billion (4.6%) increase in real terms. This growth in hospital spending was partially driven by an increase in hospitalisations involving a COVID-19 diagnosis.
According to the latest report from the Australian Institute of Health and Welfare (AIHW), in the 2021-22 period, health expenditure in Australia was significantly skewed towards curative services rather than preventive measures. Specifically, curative services, which include hospital and primary healthcare, accounted for a substantial portion of the total health spending. In contrast, spending on preventive measures was much lower.
To give you an idea, in 2021-22, preventive health activities made up only about 2.5% of the total health expenditure. This includes public health programs aimed at preventing disease, promoting health, and prolonging life among the population. Meanwhile, curative care, including hospital services and other treatments, dominated the spending. This indicates a significant imbalance, highlighting the need for more investment in preventive healthcare to potentially reduce the long-term demand for curative services
Successful health promotion and prevention strategies - Tobacco
Prevention and health promotion has had a huge impact on tobacco smoking rates over the past few decades. Public health policy approaches, including health promotion, regulation and increased taxation on tobacco products, have led to a steady reduction in the daily tobacco smoking rate from 24% in 1991 to 13% in 2013 for people aged 14 and over. This decline has been particularly marked for younger people, with the fall in daily smoking rates over the past decade occurring predominantly among people aged 18–49. The average age at which young people aged 14–24 smoked their first cigarette has risen steadily since 2001 (15.9 years in 2013 compared with 14.3 in 2001) and the proportions of secondary school students aged 12–17 who reported smoking in their lifetime, in the past 4 weeks, past week or on 3 days of the last 7, continues to decline (White & Williams 2015).
Daily smokers aged 14 and over and key tobacco control measures, Australia, 1990–2016
Preventing chronic disease
According to the AIHW, chronic diseases such as coronary heart disease, cancer, and diabetes remain the leading causes of illness, disability, and death in Australia, accounting for a significant majority of the top causes of death in 2024. Strategies to help reduce the impact of chronic disease and associated risk factors are a focus for all Australian governments.
Key risk factors associated with chronic disease include poor diet, physical inactivity, tobacco smoking, excessive alcohol consumption, high body mass and high blood pressure. These risk factors are largely preventable and can be reduced or eliminated through behavioural changes or managed with medical treatments (for example, medication for high blood pressure).
Health promotion risk strategies targeting risk factors are wide-ranging, from guidelines and legislation to health programs and media campaigns. See the image below for examples.
Reduce long term chronic illness
Reduce long term spending on health
Reduce the impact on Australia's Health Care System
Increase Australia's life expectancy
Encourage healthy ageing