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Qld’s health blueprint a clarion call for privatising services

The Queensland government has proposed radical changes to the delivery of health services that need careful consideration. But it doesn’t seem to be waiting for consultation.

After its first year was dominated by ministerial resignations and scandals, and large-scale spending and staff cuts, Campbell Newman’s government has now revealed its hand. The findings of the Commission of Audit have set the direction for public policy, public management and service delivery.

The radical changes to the delivery of healthcare proposed by Health Minister Lawrence Springborg’s “Blueprint for Better Healthcare” make a lot more sense now we know the government looks favourably on the recommendations its audit commission made.

The commission, headed by former Liberal treasurer Peter Costello, has not released its full report. Only the executive summary was released to the press; it’s unclear whether even government backbenchers have access. In a strange approach to consultation, the government has simultaneously called for a debate and indicated it would publish the report and its response in six weeks. The interim report attracted heavy criticism from independent economists such as Professor John Quiggin — not just directed at the report’s ideology but at its financial and statistical assumptions and accuracy.

We know enough to say the report is a sweeping blueprint not just for privatisation of state assets but also for outsourcing (“contestability”) of government services. Page 11 of the executive summary effectively protects only the courts, police and emergency services from the outsourcing drive.

And now health. The “contestability” of services is spun in the blueprint as agnosticism towards the ownership of service providers, but its implications are both more far-reaching and also not subject to the mandate the government says it will seek for privatisations of assets.

Like the cuts to public health, no clue was given prior to last March’s state election that this approach would dominate health. Yet the straws have been blowing in the wind. And politically, this time the Minister has the Australian Medical Association on his side, but unions are promising “the mother of all campaigns”.

Federal Treasurer Wayne Swan has vowed to fight, claiming that the moves amount to a dismantling of Medicare. There has already been controversy over payments not made to Queensland because of a failure to meet agreed Council of Australian Governments targets. In a classic exemplar of the “blame game” over funding, the state calls this money a “cut” while Canberra decries the state for breaking its promises.

In this game, the Commonwealth probably has the best of the argument, but — as with the Gonski education forms — a co-ordinated national approach to policy now lies in tatters. Springborg’s document gestures to the role of Medicare Locals, but his own federal counterparts promise to abolish them if elected in September.

The report reads as if bureaucrats have tried to harmonise the government’s direction with national objectives. But it’s far from clear how successful they’ve been, owing to the unfortunate rhetorical sludge that characterises the writing.

Those who advocate a national approach to health reform must see this blueprint as a setback.

We don’t know much — as yet — about how the proposals will translate into practice. The paper is heavy on rhetoric and also trumpets the government’s achievements in several areas it did foreshadow in the campaign: a ban on “ambulance bypass”, for instance. And a lot of small operational initiatives are interspersed with vague generalities about how the promised land will be reached.

One worthy aspect is the emphasis on transparency. It will indeed be necessary to judge the strategy by patient outcomes and other meaningful indicators.

But there are at least two red flags that should be flying. Firstly, the call for streamlined awards and agreements. It’s true the award and classification structures in Queensland Health are complex and unwieldy; this was one of the causes of the payroll debacle. Work has been done in the past on a more logical structure, including workforce reform, which many would welcome. But there’s little indication that a competency-based approach to the scope of practice has really been thought through.

There certainly is reason to believe reducing pay rates and conditions might be part of the picture, particularly when considering remuneration is normally lower in the private sector for nurses, allied health professionals and other health workers. The government has also weakened employee protections in legislation rushed through Parliament last year. Whether a further drift of doctors to private practice will be a result is a legitimate question.

Secondly, the paper emphasises — rightly — accountability and results. But overseas experience shows outsourcing often cuts standards, and contract and performance management eats up resources that might more optimally be directed to service provision. Problems of co-ordination are also rife, with contractualism replacing co-operative management. Add contracts for service delivery to the mix of local hospital boards’ responsibility for purchasing services and you have a recipe for the sorts of bureaucratic confusion and empire building the blueprint rejects.

Something might have been learnt from outsourcing the design of the payroll system.

Costello is now trumpeting the audit report as a template for other states and a federal Liberal-National Coalition government to follow. Even if that’s blowing in the wind (and it probably isn’t), we deserve better than to be told by Springborg to “get on the train or get under it”. Change of this magnitude ought not to be done by fiat. But the train seems to have left the station.

*Dr Mark Bahnisch is a fellow of the Centre for Policy Development and a postdoctoral research fellow in the Centre Medical Education Research and Scholarship, School of Medicine at the University of Queensland

12
  • 1
    Daly
    Posted Tuesday, 5 March 2013 at 12:26 pm | Permalink

    Thus is decades of evidence based hard work by those with the interests of health consumers foremost sabotaged by those with ideological commitment to privatising everything so taxpayers pay for privatised profits for big medicine.
    Is this what we can expect from Tony Abbot? Same as Howard in the 90s. In fact back to the 90s!

  • 2
    Bill Hilliger
    Posted Tuesday, 5 March 2013 at 2:01 pm | Permalink

    Yesss indeedee, thats how we of the LNP persuasion make a surplus. Flog off all assets owned by all Australians (in this instance Queenslanders) to the mainchancers and carpetbaggers currently lobbying the-Can-do-government- for a piece of the action. Services and service providers will quickly change to enhance suffering for joe and jane public, but who cares, as long as the mainchancers and carpetbaggers are happy. After-all the stupid electorate who voted the LNP into government deserve to be shat on. Hooray for lazy Pete and his foray into fiscal nirvana! He has a Costello clone in the current federal opposition, you know a shrek/ted-e-bear look-a-like jo Hookey waiting in the wings to fix it for the federal government. And, yesss Veronica we will have a surplus; unless of course there are insufficient assets and services to privatise. Then again, there are still public highways to transform into toll roads, etc. The horizons for flogging off things are limitless.

  • 3
    Shields Linda
    Posted Tuesday, 5 March 2013 at 3:13 pm | Permalink

    Isn’t this exactly what Margaret Thatcher did in the UK? Sell off and privatise all public assets? And look at the mess they are in as a result! While living in England for a few years, it was difficult to find anyone in the UK who would admit to having voted for Thatcher, while many attributed the UK’s current financial ills to her.
    And all should look at the executive summary of the Francis report which came out a few weeks ago. Mid-Staffordshire Trust (the equivalent of our health services districts) cut 10 million pounds from their budget by cutting staff and “restructuring”, without any risk analysis beforehand. As a result, over 400 people died unnecessarily, through mistakes and poor care by insufficient staff, or unqualified care workers who replaced the (more expensive) qualified nurses.

  • 4
    Dr Dagg
    Posted Tuesday, 5 March 2013 at 3:47 pm | Permalink

    I would like to suggest a correction. For QH payroll, the complexity of awards and structures does not appear to be a significant factor in the failure relative to all the other factors. They already had a working system in place. The biggest reasons cited for changing were ideological.

    According to the Auditor-General’s report, IBM was paid close to a million dollars to further investigate the scope of the system. The Auditor-General noted that the assumptions behind the scope did not change after the investigation. What was the money spent on? We probably won’t know why the complexity didn’t get managed until we start hearing testimony in the Special Commission of Enquiry.

    The QH Payroll is estimated to cost $1.2 billion to get working. It is hard to conceive of a bigger red flag for why you should not outsource anything to do with health.

  • 5
    bjb
    Posted Tuesday, 5 March 2013 at 6:09 pm | Permalink

    Dr Dagg - you are spot on. I read all the documents released on the payroll stuff up. It was a fee fest for IBM et al from the get go.

    The Costello report in Qld’s finance’s is straight out of the Tory play book. There is probably no case of privatisation of public assets anywhere in the world where the privatised entity has provided a better outcome for the previous owners.

    It’ll be interesting to read the full report if they’re ever game enough to release it.

  • 6
    Paddy Forsayeth
    Posted Tuesday, 5 March 2013 at 6:35 pm | Permalink

    bjb: I assume you are correct since I have always worked on the logic of privatisation, viz if it makes money why sell it…if it doesn’t why buy it? A bit simplistic since some Gov. services and assets are a social necessity. Nevertheless I trust Prof. Quiggan much more than Costello, who I think is a liar, a dissembler, a twister, an obfuscator and a consummate deciever. Ditto a number of others on his side. Sadly this is the rise of the billionaires for whom the acquisition of wealth and power is an addiction. Feck! Feck! Feck!

  • 7
    beachcomber
    Posted Tuesday, 5 March 2013 at 11:59 pm | Permalink

    Privatisation of Public Health is cost shifting: from the State books to Medicare and the Federal budget.
    The States have been doing it in dribs and drabs, and now Springborg wants to put it on steroids.
    How an Abbott Government deals with it will be fascinating, and it won’t be pretty for patients.
    The Federal Coalition has a grudging acceptance of Medicare’s popularity, but is philosophically opposed to it (which is probably why the AMA is on the same page.
    Abbott has some massive new promises to fund, and is committed to cutting many sources of Government revenue. Medicare, a massive eater of Government money, will be in for the chop, and he will not want to be paying for services that the States have traditionally paid for, like public hospitals.
    Expect waiting lists to blow out. Expect the range of services to be cut in regional public hospitals. Expect beds to close.

  • 8
    Thteribl
    Posted Thursday, 7 March 2013 at 9:16 am | Permalink

    If you really want to know what the end-game is for privatised health, consider the case of Port Macquarie hospital in NSW. As soon as it got into the hands of the money-grubbers and gougers, the un-rich were treated like the proverbial ordure. Public outrage forced the NSW government to “nationalise” it.

  • 9
    paul walter
    Posted Saturday, 9 March 2013 at 8:31 pm | Permalink

    Incredibly timely summary at this time in the federal cycle also.
    The mindless market zealots and opportunist political bikies never give up, do they?

  • 10
    Yes Minister
    Posted Wednesday, 27 March 2013 at 7:22 am | Permalink

    As the Man said, the love of money is the root of all evil, however the desire by the bloodsucking parasites to divest themselves of anything that implies accountability must also rate highly. Its interesting to note attempts to twist words, whilst I was no fan of the Blighters who obviously didn’t possess much financial nous, public angst with privatization was unquestionably more significant than ‘poisoning’ asset sales. Is it possible to find an example where privatization was beneficial ?? Personally I doubt it, Tel$tra certainly didn’t become a better company, the Commonwealth Bank didn’t improve, BAC is a resounding disaster, not even a total raving lunatic would claim privatization of retail electricity has benefitted users. The biggest winners in every case have been the unbelievably avaricious fatcat executives, closely followed by company profits & shareholder dividends. Mind you there is also the matter of sweeping gubmunt rip-offs under the carpet. The hundreds of millions the QLD gubmunt has extracted from Emergex is a good example, likewise the ‘interesting’ accounting to do with Allconnex, those two wouldn’t by any means be the only examples of book cooking they hope to conceal by privatization.

  • 11
    Yes Minister
    Posted Tuesday, 2 April 2013 at 12:57 pm | Permalink

    I believe a completely truthful register of interests would quickly reveal some very interesting information concerning asset sales. Whilst I don’t have a lot of confidence in the media generally, occasionally some snippet reveals more than the culprit(s) intend. One such article I encountered recently provided an insight into certain ‘connections’ that exist between a number of players. I can now understand exactly why the incumbent LNP did things that appeared crazy at the time, hopefully the chickens will come home to roost in due course.

  • 12
    Yes Minister
    Posted Tuesday, 2 April 2013 at 1:05 pm | Permalink

    In response to Paddy Forsayeth, I think you will find the game is far from finished. I’m aware of certain ‘events’ that for one reason or another haven’t received much publicity but which nevertheless are destined to have significant consequences for old mate et al.

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