Rising doctor numbers pose practical questions for budget

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THE number of doctors in Australia is rising faster than the population but the federal government will not be drawn on claims this has led to over-servicing that will ultimately blow out the budget.    

The latest figures from the Australian Institute of Health and Welfare, show that between 2008 and 2012 the number of working medical practitioners rose by just over 16 per cent, from 68,455 to 79,653.

Compared to the population, the supply of doctors rose by almost 9 per cent during the period, with 374 full-time equivalent doctors per 100,000 people in 2012 compared with 344 four years earlier.

This has followed several years of government action to reverse the artificial restrictions on medical places in Australia, which led to an increasing reliance on overseas-trained doctors in the short to medium term and poor distribution of locally trained doctors.

Monash University demographer Bob Birrell and some conservative economists have blamed doctor numbers for the increase in commonwealth health spending and argue that it is unsustainable.

Previous legislative attempts to discourage so-called “six-minute medicine” and Medicare profiteering have had only limited success, with doctors spending less time with each patient.

The bulk-billing rate is at record highs and there is speculation the Abbott government’s Commission of Audit may recommend a $5-$6 co-payment for GP services both to raise more revenue and to discourage over-servicing.

Acting Health Minister Kevin Andrews was yesterday not willing to give credence to theories that increasing medical school places, while still relying on large numbers of overseas-trained doctors, was solving the problem of doctor shortages.

“A strong medical workforce is important to support timely access to care for patients,” he said. “Important investments have been made in the Australian-trained medical workforce to meet future needs.”

According to the AIHW data, demographic trends no longer present any imminent threats. The average age of doctors remains steady, at about 46, average hours have barely changed and women now make up a larger proportion of the workforce.

However, the supply of doctors is still not uniform. Medicare provider numbers are not tied to any one area, and there are few restrictions on where doctors can practise. Remote areas still have fewer doctors.

About two-thirds of doctors obtained their initial medical qualifications in Australia but the number of domestic university graduates increased by 62.4 per cent between 2007 and 2011.

The government has put health reform talks on hold until it has considered its budget response.

Source: The Australian