NO.015

PRODUCTIVITY COMMISSION HEALTH WORKFORCE STUDY

The Treasurer today announced that the Productivity Commission will undertake

a research study into health workforce issues.

The study has been endorsed by the Council of Australian Governments and will

help governments to improve their understanding of the workforce-related pressures

facing the health system.

The Treasurer noted that, in establishing the study, all governments have demonstrated

a willingness to collaborate in addressing important health workforce issues

which require a national approach.

“The commitment, care and professionalism of all those who contribute

to our health system is crucial to the successful delivery of services across

the nation, and all governments in Australia are naturally concerned about the

current issues facing the health workforce,” the Treasurer said.

The Treasurer indicated that the Productivity Commission will examine issues

affecting the health workforce including the supply of, and demand for, health

professionals. “Governments understand the need for efficient and effective

delivery of health services to all Australians in an environment of demographic

change and technological advances. The study will inform policies for continued

delivery of quality health care into the future.”

The study will look at issues such as: institutional, regulatory and other

factors across the health and education sectors affecting the supply of health

workforce professionals; the structure and distribution of the health workforce;

and factors affecting the demand for services.

The study is to be completed by 28 February 2006. The Commission will shortly

invite expressions of interest from anyone wanting to participate in the study.

All interested parties are encouraged to make submissions.

The terms of reference for the study are attached. Further information on the

study is available on the Productivity Commission website at:

www.pc.gov.au.

CANBERRA

15 March 2005

Contact: Amanda Kennedy

02 6277 7340

Terms of Reference

HEALTH WORKFORCE STUDY

PRODUCTIVITY COMMISSION ACT 1998

The Productivity Commission is requested to undertake a research study to examine

issues impacting on the health workforce including the supply of, and demand

for, health workforce professionals, and propose solutions to ensure the continued

delivery of quality health care over the next 10 years. The study is to be undertaken

in the context of the need for efficient and effective delivery of health services

in an environment of demographic change, technological advances and rising health

costs.

In undertaking the study, the Productivity Commission will have regard to the

National Health Workforce Strategic Framework and other relevant bodies of research.

Background

Australian governments agree that the success with which health services are

delivered across the nation is advanced through the commitment, care and professionalism

of the Australian health workforce.

Accordingly, on 25 June 2004, the Council of Australian Governments (COAG)

agreed to commission a paper on health workforce issues, including supply and

demand pressures over the next 10 years. COAG also agreed that the paper should

address the issue of general practitioners in or near hospitals on weekends

and after hours.

For the purpose of this study, ‘health workforce professional’

includes the entire health workforce, from those trained in the vocational education

and training (VET) sector to medical specialists. The education and training

sector includes vocational, tertiary, post-tertiary and clinical education and

training.

COAG Resolution

COAG agreed:

“HEALTH

COAG today discussed the issue of health and reiterated the importance of

moving ahead on improving health services.

COAG agreed to commission a paper on health workforce issues, including supply

and demand pressures over the next 10 years. The paper will take a broad,

whole-of-government perspective, including health and education considerations,

and will cover the full range of health workforce professionals. In considering

these issues, the paper will look at the particular health workforce needs

of rural areas.

It was also agreed that the paper will address the issue of general practitioners

in or near hospitals on weekends and after hours.

This paper will be considered by COAG within 12 months.”

Scope

In reporting on Australia’ss health workforce, the Productivity Commission

should:

1. Consider the institutional, regulatory and other factors across both the

health and education sectors affecting the supply of health workforce professionals,

such as their entry, mobility and retention, including:

(a) the effectiveness of relevant government programmes and linkages between

health service planning and health workforce planning;

(b) the extent to which there is cohesion and there are common goals across

organisations and sectors in relation to health workforce education and training,

and appropriate accountability frameworks;

(c) the supply, attractiveness and effectiveness of workforce preparation

through VET, undergraduate and postgraduate education and curriculum, including

clinical training, and the impact of this preparation on workforce supply;

(d) workforce participation, including access to the professions, net returns

to individuals, professional mobility, occupational re-entry, and skills portability

and recognition;

(e) workforce satisfaction, including occupational attractiveness, workplace

pressure, practices and hours of work; and

(f) the productivity of the health workforce and the scope for productivity

enhancements.

2. Consider the structure and distribution of the health workforce and its

consequential efficiency and effectiveness, including:

(a) workforce structure, skills mix and responsibilities, including evolving

health workforce roles and redesign, and the flexibility, capacity, efficiency

and effectiveness of the health workforce to address current and emerging

health needs, including indigenous health;

(b) analysis of data on current expenditure and supply of clinical and non-clinical

health workers, including the development of benchmarks against which to measure

future workforce trends and expenditure; and

(c) the distribution of the health workforce, including the specific health

workforce needs of rural, remote and outer metropolitan areas and across the

public and private sectors.

3. Consider the factors affecting demand for services provided by health workforce

professionals, including:

(a) distribution of the population and demographic trends, including that

of indigenous Australians;

(b) likely future pattern of demand for services, including the impact of

technology on diagnostic and health services; and

(c) relationship between local and international supply of the health workforce.

4. Provide advice on the identification of, and planning for, Australian healthcare

priorities and services in the short, medium and long-term, including:

(a) practical, financially-responsible sectoral (health, and education and

training) and regulatory measures to improve recruitment, retention and skills-mix

within the next ten years; and

(b) ongoing data needs to provide for future workforce planning, including

measures to improve the transparency and reliability of data on health workforce

expenditure and participation, and its composite parts.

In doing so, the paper should take into account existing Australian research

and overseas developments that have demonstrated success in providing a flexible

response to emerging trends.

5. Provide advice on the issue of general practitioners in or near hospitals

on weekends and after hours, including the relationship of services provided

by general practitioners and acute care.

6. Consult widely, including with peak industry, representative and community

organisations, and relevant government agencies and public authorities.

7. The Commission is to produce an issues paper by 31 May 2005, provide a draft

report, and produce a final report by 28 February 2006.

PETER COSTELLO