In March 1999 a joint SRDC and Department of Health and Aged Care, 'Health and Economics Workshop' was held at New Parliament House, Canberra, to establish priorities for research into the economics of health in Australia, to discuss the reform agenda and to explore ideas for infrastructure/capacity building. After the workshop the SRDC set aside approximately $500,000 for research into the 'macro' issues of the economics of health.
Health and Economics Research Program as at December 2003
It was agreed at the workshop that specific research questions should not be outlined in the call for health and economics research, since it was felt that:
This could create an expectation that policy change was about to occur in these areas.
A general call for expressions of interest had the potential to produce new and interesting research and could attract ideas from mainstream economics, collaborations between researchers from different institutions and from those currently working in health economics.
It was also agreed that the research aim under this program should be to examine the large systemic questions around the economics of health utilising mainstream economists.
In January 2001, three projects to be conducted over two years under the Health and Economics Research Program were funded, at a cost of $472,000. All three projects were completed late 2003.
The projects are as follows:
- Improving technical and allocative efficiency of hospital care through use (and development) of casemix measures. (Chief Investigator: Professor Stephen Duckett)
This research will focus on the use (and development) of casemix measures. The project has four sub-components analysing: (i) within-DRG variation in costs; (ii) casemix measures which cross hospital and non-hospital care; (iii) population-based casemix measures; and (iv) inappropriate use of hospitals.
- Impact of alternative funding methods on the efficiency and equity of hospital care in Australia. (Chief Investigator: Professor Robert Gibberd)
This project will analyse 10 years of Australian data to determine whether funding systems are able to improve measures of regional equity and hospital efficiency.
The project makes the most of the opportunity created by the introduction of casemix funding systems by some States and the use of population based funding by NSW to determine the impact of these funding systems on the resulting efficiency and equity of the acute care hospital system.
- Improving the cost effectiveness of health services for the prevention and treatment of coronary heart disease. (Chief Investigator: Dr Theo Vos)
This study will determine the most cost-effective intervention options required to sustain a continued decline in the impact of heart disease on the health status of Australians.
The project is significant because heart disease is still the largest cause of disease burden in Australia, despite considerable declines in premature deaths and illness in the last two decades. A large number of health interventions exist that can prevent or cure heart disease. Given the limited resources available to health services, it is important to choose the mix of health services that produces the greatest benefit in therms of health.