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Simon McKeon, CSIRO - Advancing Australia’s Efforts in Medical Research and Innovation

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Simon McKeon AO, Chairman, CSIRO delivered this presentation at the 15th Annual Health Congress 2014. This event brings together thought leaders and leading practitioners from across the Australian …

Simon McKeon AO, Chairman, CSIRO delivered this presentation at the 15th Annual Health Congress 2014. This event brings together thought leaders and leading practitioners from across the Australian health system to consider the challenges, implications and future directions for health reform.

For more information, please visit http://www.informa.com.au/annualhealthcongress14

Published in: Health & Medicine

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  • 1. 15th Annual Health Congress Advancing Australia’s Efforts in Medical Research and Innovation Simon McKeon Chairman, Federal Government Strategic Review into Health & Medical Research 25 MARCH 2014
  • 2. Panel Members Mr Simon McKeon AO (Chairman) Ms Elizabeth Alexander AM Prof Henry Brodaty AO Prof Melissa LittleMr Bill Ferris AC Prof Ian Frazer AC
  • 3. Australia’s health system delivers good outcomes for a reasonable cost Note: 1. Australia’s GDP per capita is above US$35k 2. PPP – purchasing power parity Source: OECD, Pacific Strategy Partners Analysis Life Expectancy vs. Health Expenditure 2010 GDP per Capita at US$ PPP 72 74 76 78 80 82 84 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 Korea Japan Italy Israel Life Expectancy DenmarkChile Canada Australia1 Greece Health Expenditure per Capita, US$ PPP US UK SwitzerlandSweden Spain Poland Norway Netherlands Mexico Finland Less than US$25k US$25k - US$35k Greater than US$35k
  • 4. Australia’s Share of Global Publications in Selected Journals1 % Share of Total Publications Notes: 1. Australia is estimated to account for ~1.1% of health R&D and ~1.8% of global GDP, but ~3.6% of the above health and medical publications 2. New England Journal of Medicine Source: Thomson Reuters; MA Burke & J-J Monot, ‘Global financing and flows’, Chapter 2 in Monitoring Financial Flows in Health Research 2006 (pp.33–62), 2006 Nature Science Cell 2010 3.0% 2009 2.5% 2008 2.5% 2007 2.8% 2006 2.7% 2005 2.4% 2004 2.1% Lancet 2009 4.1% 2010 NEJM 4.6% 2008 4.8% 2007 5.4% 2006 4.3% 2005 3.7% 2004 3.4% # Australian Publications Three Fundamental Science Journals: Science, Cell and Nature Two Key Clinical & Public Health Oriented Journals: The Lancet & NEJM2 108 131 151 146 131 129 153 126 124 144 180 153 131 146
  • 5. 51 68 89 111 129 0 50 100 150 200 250 Impact of increasing demand for higher standard of care 3 2009-10 4% 51 2049-50 7% 257 128 2039-40 6% 166 56 2029-30 5% 105 16 2019-20 4% 71 The current trajectory of projected Australian Government health expenditure is unsustainable Treasury Projections of Australian Government Health Expenditure1 $bn Note: 1. Excludes state and territory Government health expenditure Source: Australian Government, Intergenerational Report 2010, Canberra, 2010 % of GDP Impact of ageing and population effects only
  • 6. Health outcomes are driven by the productivity and cost-effectiveness of interventions Health System Performance Notes: 1. Based on US estimates Source: Pacific Strategy Partners analysis; TO Tengs, et al, ‘Five-hundred life saving interventions and their cost effectiveness’, Risk Analysis, 1995, 15(3):369– 484; Institute of Medicine of the National Academies, Best Care at Lower Cost: The Path to Continuously Learning Health Care in America, 2012; DM Berwick & AD Hackbarth, ‘Eliminating Waste in US Health Care’, Journal of the American Medical Association, 2012, 307(14):1513-1516; Pricewaterhouse Coopers (PWC) Health Research Institute, The Price of Excess: Identifying Waste in Healthcare Spending, 2008 Cumulative Health Outcome (e.g. QALYs) Cost ($) Current Aggregate Health System Performance II. Routine Treatment III. Low Value Intervention V. Adverse EventsIV. Waste Vaccination Renal Dialysis Screening Programs Preventative health campaigns Chemotherapy for most Cancers Open Heart Surgery for patients >70 Intensive care for very ill patients Adverse Drug Reactions Preventable surgical complications Lost or unnecessary diagnostic tests I. High Value Intervention Estimated at 20% – 30%¹ of Health Spend
  • 7. Health outcomes can be improved by better management, increased research translation and new knowledge Levers to Improve Health System Performance Source: Pacific Strategy Partners Analysis Cost ($) 0 1. Eliminate Adverse Events and Waste – Management – Health services research – Health economics 3. Develop New Knowledge and Interventions – Biomedical research – Clinical research Cumulative Health Outcome (e.g. QALYs) 2. Translate Research into Healthcare Practice and Policy – Research translation – Evaluation and monitoring – Public health research
  • 8. The Review proposes a 10-year strategy built upon a number of themes HMR Strategy Framework 1. Better Health Through Research 5. Enhance Non- commercial Pathway to Impact 6. Enhance Commercial Pathway to Impact 3. Support Priority- driven Research 4. Maintain Research Excellence 7. Attract Philanthropy and New Funding Sources 8. Invest and Implement Build HMR Capability Accelerate Translation Optimise Investment 2. Embed Research in the Health System

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