For those looking for evidence that economic reform is hard in Australia, look no further than the news — broken by The West Australian’s Andrew Probyn — that the government is considering putting Medicare, the Pharmaceutical Benefits Scheme and Human Services payments systems out to tender.
The Labor Party immediately attacked the proposal as “privatising Medicare”, while independent senator Glenn Lazarus complained of public service jobs being lost.
But the process of providing the Medicare Benefits Schedule, PBS and welfare payments requires a vast bureaucracy and complex systems to deliver funds to health professionals and clients across the country. There is no reason why, potentially, it could not be handled by a private sector provider, especially one that could afford to make improvements to the government’s outdated payment system. This would not involve “privatising Medicare” — it would simply reduce the cost and improve the efficiency of Medicare.
But there would be significant risks. More than virtually any other government activity, medical, pharmaceutical and welfare payments systems comprise highly sensitive data about virtually every Australian. The security of such data, and guarantees against any extraneous use of such data, must be built into an outsourcing tender from the very beginning.
Anyone who has had experience of Commonwealth outsourcing — especially IT outsourcing — will know that private providers routinely fail to live up to promised service levels and appear happy to accept penalties for doing so, because they are making so much money from their basic contracts. When it comes to the security of medical and welfare data, such an approach would be disastrous. Data security should be the threshold issue on which outsourcing is considered — not Labor scare tactics about privatising healthcare.
I’m afraid you’ve got me scratching my head a bit here Crikey.
Could you help me out, by naming just a few of those Govt functions that have been “improved” by handing them over to the private sector?
Surely all the new hardware and software has to be sourced by the public sector or the private sector. So we pay either way. The TPP gives multinationals the opportunity to run our public sector yet we were told the TPP would give our companies opportunities in the services sector. Yes, but not in Australia.
We have Serco running our concentration camps very badly, I don’t want them controlling my pension payments.
“Potentially” – it’s such a funny word, beloved of politicians in particular (trying to flog the family silver) – with it’s habit of disappointing when it comes to delivery?
The only real question is to which el-cheepo country the data processing would be outsourced.
Coz we know that it will be, asbloodyp.
India & Philipines are probably too expensive for whichever tory donating shonk front gets the contract – hell, we’d be lucky if it were even on par with Dilbert’s spikey haired no-nuttin boss’ brainfart.
This editorial has made me decide not to renew my subscription. You are journalists so investigate don’t just reuse government press releases ie “Don’t print crap”.
Do not ask me why Medicare, Pharmacuetical Benefits and Centrelink have been bundled together because they are very different organisations.
Unless you attend a “prick” of a doctor, when you pay for your appointment, since 2005 the medical practice can submit your claim to Medicare. Since July 1, 2013 all Medicare claims are paid directly into your bank account within a fortnight, at the moment sometimes by close of business.
Pharmaceutical claims are submitted electronically each month by chemists and payments are issued.
These systems almost run themselves.
yes, there are BUREAUCRATS who check doctors prescribing patterns, chemists dispensing patterns and keep track of which patients are using restricted drugs. These bureaucrats also formulate strategy
Outsourcing these 2 systems would be a cash cow for the outsourcer and they could ignore pesky compliance issues thus fire those fat-cat public servants.
From casual observation I can say that Centrelink payments are very large complex and on a completely inadequate software and hardware platform for its current needs. Perhaps boosting the number of public servants and bringing functionality back in house would improve its service delivery to social welfare recipients