Increased investment in preventive health will save billions, boost national health and productivity: RACGP

A strategic shift in healthcare funding could save the Australian healthcare system billions of dollars and dramatically improve health outcomes, according to the Royal Australian College of General Practitioners (RACGP). 

The RACGP is calling for increased investment in preventive health ahead of the Federal Government’s Economic Reform Roundtable that starts today, arguing that such funding will reduce hospital admissions, enhance illness prevention, and improve national productivity. 

“Currently most of Australia’s health spending goes toward treating illness and disease. The National Preventive Health Strategy 2021–2030 points out that we need to shift gears and invest more in prevention to keep people healthier in the first place,” said Dr Michael Wright, RACGP President said.  

Dr Wright highlighted that Australia’s healthcare system was designed for a time when acute medical conditions dominated. Today, with nearly half of Australians living with chronic health conditions, the system is no longer fit for purpose. Dr Wright pointed to the Government’s increased investment in childcare as a model for how preventive health funding can drive productivity. 

“We’ve seen the Government significantly boost investment in childcare to support workforce participation and productivity. It’s time to apply the same logic to preventive health delivered in the community,” Dr Wright said.  

“Almost 90% of Australians visit their GP every year. Those ongoing relationships make general practice a key player in the treatment of acute and chronic health conditions and preventive care. This keeps people out of the more expensive health system and allows them to live longer, healthier and more productive lives.  

“If we fund preventive health properly, we’re investing in keeping Australians well in the community. That’s better for their health, and better for our economy – we’re setting ourselves up for huge savings down the track. It’s disappointing that there are no health representatives at the table this week discussing these options to drive better health outcomes in a more productive manner.” 

Despite general practice being the most accessed part of the healthcare system, government spending remains disproportionately low and stagnant. Only $420 is invested per person annually in general practice, compared to $3483 per person in hospital care. 

“General practice is the backbone of Australia’s health system,” Dr Wright said.   

“For people in rural communities or those doing it tough, it’s often their only access to preventive care. That’s why it’s so important to make sure it’s properly supported.”  

The RACGP’s Vision for general practice outlines a sustainable healthcare system that addresses Australia’s most pressing health challenges. Key recommendations include: 

• Provide more funding support for patients who need longer consultations with their GP 

• Updated Practice Incentive Payments to cover accreditation and labour costs 

• Deprivation payments based on patient demographics or practice location 

• Service coordination payments, such as Service Incentive Payments (SIPs) 

“Had Australia’s government placed more of an emphasis on preventive care five years ago when we released our Vision, they could have saved at least $5 billion in health costs by now.” 

The RACGP urges the Government to act now to ensure general practice is equipped to meet the evolving needs of Australians and deliver a healthier, more productive future. 

~ENDS 

RACGP spokespeople are available for interviews: 03 8699 0992 / [email protected].