Ministers Ley’s recently announced review of Medicare has largely been welcomed, however it remains to be seen whether it will dig ‘deep enough’. A multidisciplinary review of Federal Government payment mechanism is warranted as the current ‘fee-for-service’ model incentivises ‘doing as much as possible, for as many as possible’. This can lead to inappropriate testing, procedures, financial waste and even potential harm. A new strategy is required to break the cycle of rising costs, as demonstrated in the Future Solutions in Australian Healthcare White Paper, which interviewed 21 leading health experts on how to reform the health system. ‘Out of the box’ strategies included delinking healthcare spending from political intervention, such as with the Reserve Bank and interest rates.

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