Federal Health Budget 2004-05 - Aged care the highlight of 'catch-up' health budget

Dr Glasson said that Health Minister, Tony Abbott, has already delivered his 'big ticket' items - Medicare Plus, the Australian Health Care Agreements, and the medical indemnity rescue package - elements of which are contained in the budget.

"Health has been relegated to the Second Eleven in this budget," Dr Glasson said.

"We do acknowledge, however, significant previously announced measures, especially the work by the Health Minister on medical indemnity.

"Spending a considerable Budget surplus on health and education for all Australians would have been a better investment in the future of this country than one-off tax cuts and other sweeteners for some Australians.

"The greatest gift we can give families - all Australians, in fact - is ready access to affordable quality health care throughout life.

"Other than the aged care package, which is considerable, there is not much else that is new.

"The AMA welcomes the Government's investment in aged care, but we note that the bulk of the funding comes in the third and fourth years (2006-07 and 2007-08).

"While the focus is on residential and community care places - and not the medical side of things - any move to improve access and quality in the aged care sector is overdue.

"Medicare Plus provided $47 million over three years toward improving the provision of medical services to patients in aged care facilities.  This is not nearly enough. 

"We support the new Comprehensive Medical Assessment for people in residential aged care, but would prefer to see a GP Facility Adviser within aged care homes instead of the proposed GP panels to be run by Divisions of General Practice.

"Better purpose-built consulting rooms, modern clinical equipment, access to electronic prescribing and billing services, and a new Medicare attendance item for comprehensive on-site aged care consultations are needed if aged care residents are to get the health care they deserve.

"In other areas, the AMA maintains its view that across-the-board increases in the Medicare patient rebate would be fairer and more effective than the geographical incentives contained in Medicare Plus.

"The biggest concern we have is the total lack of a strategy to address the medical workforce shortages.  Many doctors are retiring early or working part-time and there are no doctors to take their place.  Doctor shortages cannot be reversed overnight.

"While the AMA sees a need for more medical places and medical schools, we would rather see them established in rural and regional areas.  The UWS School may duplicate existing services and drain already stretched teaching resources.

"Undermining the teaching initiatives is the Government's ill-advised policy of unfunded bonded medical places.  They will not solve the workforce problems, they will make them worse.

"The additional $6 million to support established rural specialists who were not previously funded through the Medical Specialist Outreach Assistance Program will help keep vital services in country areas.

"We welcome the initiatives to combat avian flu and influenza.

"But the Government has failed to fully fund the Australian Standard Vaccination Schedule.  At $113 million per year, this would be a small price to pay for the health of our children.

"Funding for medical research is welcome.

"Our call for $100 million over three years to fund dementia as a National Health Priority area has apparently been ignored.

"It is already clear that the funding for public hospitals in the five-year Health Agreements is inadequate, but there is no top-up.

"There is nothing in the Budget for tobacco control and anti-smoking programs.  The AMA was seeking an extra $45 million over three years.

"There is $40 million over four years for Indigenous Health programs.  This is a welcome, but small, downpayment.  With a big Budget surplus, there was no better time to start to fund Indigenous Health properly and strategically.

"A lot of the news in this Health Budget is old news, a fair bit of it good news.  If you add it all up it represents a considerable investment in the health system.

"The AMA does not agree with how it is all being spent, but it is clear the Government has recognised the electoral importance of health.

"The AMA remains confident that the Government will follow this 'catch-up' Budget with more catching up before the election," Dr Glasson said.

CONTACT:         John Flannery            (02) 6270 5477 / (0419) 494 761
                       Judith Tokley             (02) 6270 5471 / (0408) 824 306