“When Australia currently spends over $80 billion each year on health, you might think that a $10 billion Health and Hospitals fund is just a drop in the ocean,” Stuart Rodger, Health Actuary and Partner, Deloitte commented. “But you’d be wrong,” he said.

“Most of this $80 billion is spent on health services consumption.  The position is very different when you look at how much is invested for the future.

“Investing for the future means research and capital expenditure,” Rodger explained.

“According to the latest figures from the Australian Institute of Health and Welfare (October 2007), in 2005-06 Government spending on research and capital expenditure was:

 Research:  $1.5bn
 Capital expenditure: $2.0bn
 (source: Health expenditure Australia 2005-06 – AIHW)

“In this light a $10bn fund has the potential to make a massive improvement in health research or health investment,” Rodger pointed out.