Do you think the government invests enough in the health sector? Following a number of budget cuts during 2014 and 2015, it appears that the redirection of funds will be continuing during 2016.
During the Mid-Year Economic Fiscal Outlook (MYEFO), the Australian government has chosen to reduce funding from a number of different areas, including the reduction of bulk-billing incentives in pathology and axing several initiatives around aged care education.
The Australian Medical Association (AMA) has released a new statement calling for a greater focus on the health of the nation following this announcement.
“When people are sick and injured, we need to provide them with affordable and easily accessible care in hospitals, in aged care, in general practice, in the community, and in their homes,” said AMA President Professor Owler.
“Significant new health funding is needed, but governments also need to be more strategic about how they spend every health dollar.”
Several experts have also criticised the pathology and diagnostic tax incentive reductions, saying the 5 per cent change would eventually be passed on to patients. While beforehand pathology did not usually incur any out-of-pocket costs, small medical businesses may now be forced to charge for these incredibly important services.
A different medical pathway
So, what is the alternative? Professor Owler had a number of suggestions.
“The first steps in the next Health Budget must be to lift the Medicare patient rebate freeze, reverse the cuts to pathology and radiology, and restore public hospital funding to proper levels,” he said.
“The government cannot be allowed to retreat from its responsibilities in funding and managing the core elements of health care delivery in Australia.”
How will these changes affect your small medical business? Talk to the small business accounting experts at DBS Accountants and discover how you can take control of the future of your medical enterprise.