The document discusses the importance of innovation in healthcare, highlighting the practical application of novel ideas in improving patient outcomes and reducing costs. It outlines the challenges facing the Australian healthcare system, including rising spending and inefficiencies, and advocates for the integration of clinical practice with clinical translation to drive reforms. Additionally, it emphasizes the potential for developing an export-driven healthcare economy while addressing cultural roadblocks to achieving such goals.

1. INNOVATION AND
HEALTHCARE REFORM
David Noble MBBS FANZCA

2. www.bdihealth.com
WHAT IS INNOVATION
Innovation is the practical (commercial) application of an
invention or novel idea (product, service, process)
The light bulb was research and development; the power
grid allowed the practical application
Research might be cool science but it is
commercial application that pays the bills

3. www.bdihealth.com
AUSTRALIAN HEALTHCARE
“The Australian Healthcare sector is arguably one of the
largest cottage industries in the southern hemisphere”
Cottage Industry: a small and often informally organised industry that lacks
the coordination and discipline of business

4. www.bdihealth.com
WHAT IS BDI HEALTH?
COMBINING CLINICAL PRACTICE WITH CLINICAL TRANSLATION
 Clinical Practice
 using skills, knowledge and existing products, services or processes to treat patients today
 Clinical Translation
 using skills and knowledge and resources to develop and deploy new healthcare products, services or processes
for tomorrow
 Healthcare technology development
 Medical hardware
 3 commercial development grants $110k
 Clinical translation “pipeline” with UK and US entities for hardware and software development
 Healthcare technology deployment
 Adviser to IBM Smarter Healthcare Solutions

5. www.bdihealth.com
WHAT IS ANAESTHETICS
The delivery of real time, hyper-dynamic
multisystem risk/benefit analysis and actions
constrained by existing governance and
process mechanisms

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THE HEALTHCARE ECOSYSTEM
The delivery of real time, hyper-dynamic
multisystem risk/benefit analysis and action
opportunity modified by continuously evolving
governance and process mechanisms

7. www.bdihealth.com
Why should anybody care?

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GRATTAN INSTITUTE APRIL 2013
“Time to face rising pressures on Australian government budgets”
 The report finds that the greatest of the pressures that put Australia’s prosperity at
risk come from sustained growth in spending, especially health expenditure, which
rose by nearly $42 billion in real terms over the past decade.
 But contrary to widespread belief, it is not the ageing population that is driving
health spending but the fact that people of all ages are seeing doctors more often,
having more tests and operations and taking more prescription drugs.

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HOW GOVERNMENTS RESPOND TO FINANCIAL
IMBALANCE
 Increase in taxation
 Reduction in services
ALL OF THESE HAVE A NEGATIVE IMPACT
ON FINANCIAL PROSPERITY
Traditional methods will not fix the system… but that never
stopped them before

10. www.bdihealth.com
WHO MAKES THE BIG BUCKSTHE AGE MAY 2013
1. Surgeon- $350,383
2. Anaesthetist- $302,653
4. Internal Medicine- $254,597
6. Psychiatrist- $176,885
9. Other medical- $155,465
10.Dental- $140,957

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WHERE DOES THE HEALTHCARE $ GO?
 25%-40% of the healthcare budget is lost as “waste”
 60% of a hospital’s expenditure is on wages

12. www.bdihealth.com
AN ARGUMENT FOR CHANGE
IT IS POSSIBLE THAT GOVERNMENTS WILL SOON BE ARGUING
THAT THE MEDICAL PROFESSION IS THE PROBLEM AND NOT THE
SOLUTION TO THE HEALTHCARE CRISIS
INCOME WILL BE A SIGNIFICANT FACTOR

13. www.bdihealth.com
THE WRITING IS ON THE WALL
 Performance-based funding
 Change in workforce dynamics
 More medical graduates to increase competition
 Insufficient places for current graduates
 Increasing anaesthetic trainee numbers to alter supply/demand ratio
 No staff jobs in major cities and departments being downsized
 Introduction of Nurse Practitioners
 Perioperative specialists
 Other specialties including general surgery
 Session rate is $400
The only laws that can’t be changed are the laws of nature
Look what happened to the bank deposits in Cyprus

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IF WE WANT TO SURVIVE WE NEED TO SEEN AS PART OF THE
SOLUTION AND NOT JUST PART OF THE PROBLEM
DO WE ACCEPT THEIR PATH OR CHOOSE
OUR OWN?

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PART OF THE SOLUTION
ONE OPTION IS TO BECOME CLINICAL
TRANSFORMATION SPECIALISTS IN ADDITION
TO CLINICAL PRACTICE SPECIALISTS

16. www.bdihealth.com
AN EXAMPLE OF CLINICAL TRANSLATION
 As anaesthetists we acts as clinical specialists
 If we use our skills and knowledge to develop and deploy new products,
services and processes then become clinical translation specialists
 If those products, services or processes improve patient outcomes and
decrease total healthcare costs then they improve the financial balance in
healthcare
 If the new products, services or processes have commercial potential then
they can be exported and improve national prosperity
 If we have a stake in it we make $$

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COMMERCIAL HEALTHCARE REFORM
Improved patient outcomes
Decreased total healthcare costs
Develop export driven healthcare economy

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EXPORT DRIVEN HEALTHCARE ECONOMY
 New Zealand has made a commitment to double medical technology exports
between 2012 and 2015
 What are the roadblocks to Australia achieving something similar?
The roadblocks are cultural and not technical or
geographical

19. THE END