Health Budget - PBS cuts drown out any good news

"The Health Budget is more about short-term cost savings than positive long-term health outcomes for Australians," Dr Phelps said.

"We are looking at a net decrease in health spending of $1 billion over four years - where is the vision in that?

"The negative effect of the PBS cuts is compounded by the Government abrogating its responsibility to reinforce its commitment to evidence-based medicine and handing over GP education to the pharmaceutical industry.

"Older Australians will suffer physically, emotionally and financially - they are the ones most in need of subsidised drugs to enhance and prolong their quality of life.

"A one-dollar rise per script - without any compensation measures - is a big hit to aged pensioners.

"The $6.20 co-payment increase for general patients takes the price to $28.60 - more than the MBS rebate for a standard GP consultation.

"This means that for the first time in Australia the medicine costs more than the visit to the doctor.

"People without concession cards on low incomes with a couple of kids will be spending a huge amount of their household income on pharmaceuticals.

"Professor Frank R Lichtenberg of the Columbia University School of Business says that a $1 increase in new pharmaceutical expenditure equates to a $3.65 cut in hospital care expenditure.

"Canadian research in the late 1990s on the effects of the increase in co-payments for medicines for social security recipients showed that increased co-payments caused an increase in hospitalisations (194%), doctor visits (22%) and emergency department visits (106%). This has not been considered in this Budget's slash and burn approach to the PBS.

"The Government should have consulted this research before cutting the program so irresponsibly.

"The only health positive out of the PBS tonight is the listing of Glivec, which will provide hope for many leukemia sufferers."

Dr Phelps said other than the previously announced $80 million over four years to attract 150 GPs to outer metropolitan areas, there is very little for Australia's general practitioners and their patients, particularly in regional Australia.

"The AMA/Access Economics GP workforce survey showed that there is a shortage of doctors in Australia that is getting steadily worse, but there is nothing new in this budget to address this problem.

"GPs already under pressure in their practices will find little comfort in this Budget.

"There will be draconian prescribing methods that will further impinge on the doctor-patient relationship.

"It will be harder for doctors to prescribe newer and more effective drugs for arthritis, peptic ulcers, and depression.

"There will be more bureaucracy, red tape and other obstructions preventing doctors doing what they do best - looking after their patients."

Dr Phelps said the news on aged care was brighter, with the Government delivering on much of their election promises.

"We welcome the increased number of community aged care packages but there are still no incentives or initiatives to get doctors to visit aged care facilities or old people in their homes. This will limit the usefulness of the packages."

Dr Phelps said this Health Budget is characterised by many important areas of health being left untouched.

"There is little here for youth health or drug, alcohol or tobacco programs, but the biggest health problem in this country - indigenous health - has been completely ignored.

"The Relative Value Study (RVS) and the Medicare Benefits Schedule (MBS) don't even rate a mention. This makes the Intergenerational Report irrelevant and brings into question the Government's commitment to Medicare."

Dr Phelps said the return of $5 million to asthma and specialist outreach programs is a wiser investment than the ill-fated GP House project.

CONTACT: John Flannery (02) 6270 5477 / (0419) 494 761

Sarah Crichton (02) 6270 5472 / (0419) 440 076