The Cost of Inaction on the Social Determinants of Health

The federal government could save billions of dollars in public health costs each year if it did more to tackle socio-economic inequalities, a new study suggests.

The study calculated the savings that could be achieved if the health action plan, proposed by the World Health Organisation (WHO) in 2008, was implemented.

The WHO report said the health gap between rich and poor could be closed within a generation if the international community addressed social inequality factors such as education, employment and housing.

Analysis commissioned by Catholic Health Australia found the most socially disadvantaged people in Australia are twice as likely to suffer long-term chronic illness as the least disadvantaged.

That equated to 500,000 Australians, and $2.3 billion in hospital costs that could be saved each year if the group was lifted above the poverty line, The Cost of Inaction on the Social Determinants of Health report said.

Social policies to help the at-risk group to finish school and gain secure employment could result in 60,000 fewer people being admitted to hospital each year, the figures suggest.

As a result, access to Medicare services would drop by 5.5 million a year, delivering a saving of $2.3 billion.

And the same number of Pharmaceutical Benefit Scheme scripts would no longer be needed, saving $185 million.

In addition, an extra 170,000 Australians would enter the workforce each year, generating $8 billion in additional earnings and $4 billion worth of savings in welfare support payments.

Catholic Health Australia chief executive officer Martin Laverty says the staggering opportunities could be realised if a new approach to health policy was adopted.

'The opportunity requires action outside of the formal health system,' he said, flagging a 'health in all policies' approach.

A parliamentary inquiry to better understand the health inequalities in Australia was also needed, he said.

60,000 too many Australians in hospital because of poor education, employment and housing among low-income earners

by: EVELYN YAMINE HEALTH REPORTER From: The Daily Telegraph June 04, 2012 12:00AM

ABOUT 60,000 too many Australians are admitted to hospital each year because of poor education, employment and housing among low-income earners, a study shows.
Catholic Health Australia commissioned research into how social determinants of health impact Australia and found adopting a "health in all policies" approach will save $2.3 billion in hospital costs because 60,000 less people will be admitted to hospital.

The findings are derived from the World Health Organisation's 2008 recommendations on how to improve health but the action plan has not yet been implemented in Australia.

The 'Cost of Inaction on the Social Determinants of Health' report found if the WHO recommendations were put in place in Australia a number of health factors would improve and cut health costs.

This means 500,000 Australians could avoid getting a chronic illness, which cost the government $4 billion a year in welfare payments.

Another 170,000 Australians would be in the workforce, adding $8 billion to the economy in extra earnings. It also revealed the taxpayer-funded pharmaceutical benefits scheme prescriptions could be cut by 5.3 million, saving $184.5 million annually, and 5.5 million less Medicare services would be needed every year, saving $273 million.

CHA CEO Martin Laverty said lack of early childhood development, education, employment and housing contributed to the poor health in low-income Australians.

"We're calling for more resources to be spent on health outside of the health system to save taxpayers' money."

Mr Laverty said there was a link between socio-economic factors on health outcomes because poorer Australians were twice as likely to suffer from a chronic illness than the more affluent.

"Action is needed by the government to improve the living conditions of disadvantaged Australians in order to improve the health of the population."

"Hospital emergency departments around Australia are treating people with avoidable chronic illness because governments are not prioritising action in early childhood development, schooling and employment supports.

Australian Medical Association president Dr Steve Hambleton said social determinants did impact on health and an action plan made sense.

"We do need to take extra care and provide extra support and money for the lower socio-economic demographic," he said.

Tackling poverty could cut $2.3bn off health bill

David Wroe  June 4, 2012

Australia could save billions by tackling the social causes of poor health such as poverty. Photo: Michael Rayner

AUSTRALIA could save $2.3 billion a year on hospital costs and cut the number of chronic illness sufferers by up to 500,000 by tackling the social causes of poor health such as poverty, a study has found.

The University of Canberra's National Centre for Social and Economic Modelling found that the federal government could also trim 5.3 million scripts from the taxpayer-funded Pharmaceutical Benefits Scheme and save $4 billion in welfare payments.

The study, commissioned by Catholic Health Australia, concluded that this could be achieved by adopting the recommendations of a World Health Organisation report in 2008.

Advertisement: Story continues below Catholic Health Australia chief executive Martin Laverty said that social causes of poor health such as income, housing and education were, in turn, causing massive levels of avoidable problems.

''Helping people to finish school, to gain secure employment and to better participate in society could result in 500,000 Australians remaining healthy and save taxpayers billions of dollars,'' Mr Laverty said.

THE COST OF INACTION ON THE SOCIAL DETERMINANTS OF HEALTH REPORT NO. 2/2012