barry smith (te rarawa, ngati kahu) population health analyst planning and funding

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Healthy Communities – Mauriora! Future Pressures on the Health System: Some Critical Factors Presentation to the 2012 Health and Disability Sector NGO-MoH Forum Deloitte Lounge Westpac Stadium Wellington Thursday 29 th March Barry Smith (Te Rarawa, Ngati Kahu) Population Health Analyst Planning and Funding Lakes District Health Board

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Future Pressures on the Health System: Some Critical Factors Presentation to the 2012 Health and Disability Sector NGO-MoH Forum Deloitte Lounge Westpac Stadium Wellington Thursday 29 th March. Barry Smith (Te Rarawa, Ngati Kahu) Population Health Analyst Planning and Funding - PowerPoint PPT Presentation

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Page 1: Barry Smith (Te Rarawa, Ngati Kahu) Population Health Analyst Planning and Funding

Healthy Communities – Mauriora!

Future Pressures on the Health System:Some Critical Factors

Presentation to the2012 Health and Disability Sector NGO-MoH Forum

Deloitte LoungeWestpac Stadium

WellingtonThursday 29th March

Barry Smith (Te Rarawa, Ngati Kahu)

Population Health AnalystPlanning and Funding

Lakes District Health Board

Page 2: Barry Smith (Te Rarawa, Ngati Kahu) Population Health Analyst Planning and Funding

Healthy Communities – Mauriora!

The three sides to every story:

- yours

- mine

- and what’s really happening!

Page 3: Barry Smith (Te Rarawa, Ngati Kahu) Population Health Analyst Planning and Funding

Healthy Communities – Mauriora!

Four messages

Given that forewarned is forearmed we should debate these matters now – and - in a fully transparent way

We should examine options using a ‘slow policy’ process and avoid the reactive ‘dog bite’ approach

How we deal with these (ethical) challenges will say a lot about us - our values - and the sort of society we want to live in

Community based entities may end up ‘bearing the

brunt’ of stresses felt elsewhere in the health system

Page 4: Barry Smith (Te Rarawa, Ngati Kahu) Population Health Analyst Planning and Funding

Healthy Communities – Mauriora!

“There will be increasing pressure to raise health funding levels - even under a philosophy of fiscal constraint”

“Increasing numbers of older people will make spending on health difficult to control fiscally - but – especially – politically”

“Continued use of the current ways of distributing the health dollar may widen health disparities - and so add social costs”

“Explanations around individual health status will focus more on personal responsibility”

“ [But] the major cause of financial stress on the health system may well lie with factors other than ageing”

The dominant (global) narrative

Page 5: Barry Smith (Te Rarawa, Ngati Kahu) Population Health Analyst Planning and Funding

Healthy Communities – Mauriora!

Pressure Source 1: Changing population

Page 6: Barry Smith (Te Rarawa, Ngati Kahu) Population Health Analyst Planning and Funding

Healthy Communities – Mauriora!

Demographic picture for New Zealand 2011-36(Source: Statistics NZ)

Count

0%

-----4%------

98%

12%

Medium Growth Projections 2011-2036

Page 7: Barry Smith (Te Rarawa, Ngati Kahu) Population Health Analyst Planning and Funding

Healthy Communities – Mauriora!

Number in working population (15-65 yrs) for every person 65 yrs and over

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

2011 2016 2021 2026 2031 2036

Year

Rati

o 1

5-6

4:6

5+

NZ Australia

Page 8: Barry Smith (Te Rarawa, Ngati Kahu) Population Health Analyst Planning and Funding

Healthy Communities – Mauriora!

Healthcare Cost by Age(Source: NZ Treasury, 2010)

Page 9: Barry Smith (Te Rarawa, Ngati Kahu) Population Health Analyst Planning and Funding

Healthy Communities – Mauriora!

Total Cost per Hospital Discharge by Age and Ethnicity2010/11 Fiscal Year

(Source: NMDS)

0

50

100

150

200

250

300

00-04 05-09 10-14 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75-79 80-84 85+

Age Category in Years

Co

st

in M

illio

ns

Do

llars

Maori

Non-Maori

Page 10: Barry Smith (Te Rarawa, Ngati Kahu) Population Health Analyst Planning and Funding

Healthy Communities – Mauriora!

Average Hospital Discharge Cost by Age and Ethnicity:2010/11 Fiscal Year

(Source: NMDS)

0

1000

2000

3000

4000

5000

6000

00-04 05-09 10-14 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75-79 80-84 85+

Age Category in Years

Co

st

in D

olla

rs

Maori

Non-Maori

Page 11: Barry Smith (Te Rarawa, Ngati Kahu) Population Health Analyst Planning and Funding

Healthy Communities – Mauriora!

Pressure Source 2: Changing technology

Page 12: Barry Smith (Te Rarawa, Ngati Kahu) Population Health Analyst Planning and Funding

Healthy Communities – Mauriora!

The impacts – positive and negative

Positive Supports new thinking and new knowledge Can contribute to better health outcomes if access is

only needs driven

Negative Often adopted before being ‘fully tested’ New treatments can worsen health disparity if access

is not needs based Enthusiasm can override appropriate application [Generally] raises costs to the health sector

So - how should we balance cost against ‘progress’?

Page 13: Barry Smith (Te Rarawa, Ngati Kahu) Population Health Analyst Planning and Funding

Healthy Communities – Mauriora!

Pressure Source 3: Changing workforce

Page 14: Barry Smith (Te Rarawa, Ngati Kahu) Population Health Analyst Planning and Funding

Healthy Communities – Mauriora!

Some questions

Does use of language like “front-line services” etc. over simplify the way the health system works?

Are we making ‘savings’ just to meet rising costs in other parts of the health system?

How will regionalisation and centralisation impact communities in provincial New Zealand and just what should be regionalised?

Should control and accountability be located in the same or different places?

What should the future skill-mix in the health sector look like and will decisions be driven by equations of cost or need?

Page 15: Barry Smith (Te Rarawa, Ngati Kahu) Population Health Analyst Planning and Funding

Healthy Communities – Mauriora!

Pressure Source 4: Changing inequality?

Page 16: Barry Smith (Te Rarawa, Ngati Kahu) Population Health Analyst Planning and Funding

Healthy Communities – Mauriora!

New Zealand life expectancy at birth(Source: Statistics NZ, NZ Life Tables, 2005-2007)

Period Non-Maori Males

Maori Males Non-Maori Females

Maori Females

1970-72 69.1 61.0 75.2 65.0

2000-2002 77.2 69.0 81.9 73.2

2005-2007 79.0 70.4 83.0 75.1

Page 17: Barry Smith (Te Rarawa, Ngati Kahu) Population Health Analyst Planning and Funding

Healthy Communities – Mauriora!

Life Expectancy Trends: Maori and Non-Maori(Source: MSD)

NZ LIFE EXPECTANCY AT BIRTH BY ETHNICITY AND GENDER

65

67

69

71

73

75

77

79

81

83

85

1985-87 1990-92 1995-97 2000-02 2005-07YEARS

LIF

E E

XP

EC

TA

NC

Y I

N Y

EA

RS

Maori Male

Non-Maori Male

Maori Female

Non-Maori Female

Page 18: Barry Smith (Te Rarawa, Ngati Kahu) Population Health Analyst Planning and Funding

Healthy Communities – Mauriora!

Amenable Mortality Rates 1996-2006(Source: MoH)

SRR Maori : NonMaori

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Year

Male Female

Rate Ratio

Page 19: Barry Smith (Te Rarawa, Ngati Kahu) Population Health Analyst Planning and Funding

Healthy Communities – Mauriora!

Inequalities by DHB (‘Bulletin 28’)(Source: Monitoring Health Inequality Through Neighbourhood Life ExpectancyMoH Public Health Intelligence Occasional Bulletin No. 28, December 2005)

Bay of Plenty

Waitemata

Hawke's Bay

Southland

Wairarapa

LakesNorthland

Counties Manukau

Waikato

West Coast

South Canterbury

MidCentral

Taranaki

Hutt

Nelson-Marlborough

Canterbury

Capital and Coast

Possible goal

Auckland

Whanganui

Tairawhiti

Otago

-2.5

-2.0

-1.5

-1.0

-0.5

0.0

0.5

1.0

1.5

2.0

2.5

-2.5 -2.0 -1.5 -1.0 -0.5 0.0 0.5 1.0 1.5 2.0 2.5

Scatter plot of LE against HIIs, after standardisation

Low average level of healthFair distribution of health

High average level of healthFair distribution of health

High average level of healthUnfair distribution of health

Low average level of healthUnfair distribution of health

HII

LE

Page 20: Barry Smith (Te Rarawa, Ngati Kahu) Population Health Analyst Planning and Funding

Healthy Communities – Mauriora!

Age standardised death rates < 75 years

France Australia Japan Germany New Zealand United Kingdom USA

1997–98 75.6 88 81.4 106.2 114.5 126.5 120.2

2002–03 64.8 71.3 71.2 90.1 95.6 102.8 109.6

2006–07 55 56.9 61.2 76.4 78.6 82.5 95.5

(Source: OECD)

Page 21: Barry Smith (Te Rarawa, Ngati Kahu) Population Health Analyst Planning and Funding

Healthy Communities – Mauriora!

The ‘glass half-full’ scenario

Slower growth of the population under 65 years will provide opportunities to ‘re-invest’ elsewhere in the system

Improving morbidity rates and ‘re-configured’ models of healthcare delivery will reduce pressure on available resources

Better measures of ageing (e.g. the ‘old age dependency ratio’) will provide a more accurate picture of the social impacts of ageing

‘Distance from death’ measures will provide a more

‘optimistic’ picture of future resource demand

Page 22: Barry Smith (Te Rarawa, Ngati Kahu) Population Health Analyst Planning and Funding

Healthy Communities – Mauriora!

The ‘glass half-empty’ scenario

Increasing life expectancy will generate increasing levels of disability and associated costs

Social expectations around the level of available healthcare will rise as populations age

Reconfigured models of health delivery will generate a net cost and so will not solve funding pressures

[Thus] advantages from ‘morbidity compression’ will be lost

Page 23: Barry Smith (Te Rarawa, Ngati Kahu) Population Health Analyst Planning and Funding

Healthy Communities – Mauriora!

The melancholic optimist

“There is a crack, a crack in everything,That’s how the light gets in”(Anthem)

Leonard Cohen, b. 1934

Page 24: Barry Smith (Te Rarawa, Ngati Kahu) Population Health Analyst Planning and Funding

Healthy Communities – Mauriora!

Thinking about solutions:

Models of resource distribution

Page 25: Barry Smith (Te Rarawa, Ngati Kahu) Population Health Analyst Planning and Funding

Healthy Communities – Mauriora!

Some critical questions

How should we assess health need - and what definition should we use?

Should all health gains count equally - and what about the ‘fair innings’ argument?

Whose costs and benefits should we value most – should we focus just on the working population?

Should we apply ‘discount rates’ to health care - and focus on improving system responsiveness?

Page 26: Barry Smith (Te Rarawa, Ngati Kahu) Population Health Analyst Planning and Funding

Healthy Communities – Mauriora!

Still more questions!

Will we need a clearer definition of ‘adequate health’?

What priority should we give to the ‘worst off’?

Why don’t we just work on reducing health inequalities and focus less on ‘health maintenance’?

How should we balance individual rights against

broader social goals?

Page 27: Barry Smith (Te Rarawa, Ngati Kahu) Population Health Analyst Planning and Funding

Healthy Communities – Mauriora!

So - how should we carve up the cake?

Models of social distribution Equality model – an equal portion to each Functional model – a portion proportional to need Reward model – a portion proportional to effort Social value model – a portion proportional to the

contribution to society Meritocracy model – a portion proportional to merit

Page 28: Barry Smith (Te Rarawa, Ngati Kahu) Population Health Analyst Planning and Funding

Healthy Communities – Mauriora!

Thinking about solutions:

The consequences of these models for the ways we spend the health dollar

Page 29: Barry Smith (Te Rarawa, Ngati Kahu) Population Health Analyst Planning and Funding

Healthy Communities – Mauriora!

Healthcare cost by age - current picture

AGE

FUNDING

LEVEL

Page 30: Barry Smith (Te Rarawa, Ngati Kahu) Population Health Analyst Planning and Funding

Healthy Communities – Mauriora!

Healthcare cost by age – future picture

AGE

FUNDING

LEVEL

Page 31: Barry Smith (Te Rarawa, Ngati Kahu) Population Health Analyst Planning and Funding

Healthy Communities – Mauriora!

Equality model - based on an equal share for all

AGE

FUNDINGLEVEL The

‘needs –allocation’ gap

Page 32: Barry Smith (Te Rarawa, Ngati Kahu) Population Health Analyst Planning and Funding

Healthy Communities – Mauriora!

Reward model - based on current ‘productive effort’

AGE

FUNDINGLEVEL

Page 33: Barry Smith (Te Rarawa, Ngati Kahu) Population Health Analyst Planning and Funding

Healthy Communities – Mauriora!

Social values model- based on ‘contribution’ to society

AGE

FUNDING

LEVEL

Page 34: Barry Smith (Te Rarawa, Ngati Kahu) Population Health Analyst Planning and Funding

Healthy Communities – Mauriora!

Meritocracy model - based on ‘social merit’

AGE

FUNDINGLEVEL

Page 35: Barry Smith (Te Rarawa, Ngati Kahu) Population Health Analyst Planning and Funding

Healthy Communities – Mauriora!

Functional model: - based on a current picture of health cost by age

AGE

FUNDING

LEVEL

Page 36: Barry Smith (Te Rarawa, Ngati Kahu) Population Health Analyst Planning and Funding

Healthy Communities – Mauriora!

Neo-functional model: - based on re-configured need - the ‘bathwater effect’

AGE

FUNDING

LEVEL

Page 37: Barry Smith (Te Rarawa, Ngati Kahu) Population Health Analyst Planning and Funding

Healthy Communities – Mauriora!

‘Right’ conditions for policy development?

Value views from outside the sector

Know more about ethics and social justice and evaluate policy directions accordingly

Have wider more inclusive debates about definitions of need View health goals in terms of both collective and individual

gains

Take the issue of health inequality seriously Apply ‘slow policy’ methods rather than the reactive

fragmented approach we seem to prefer

Page 38: Barry Smith (Te Rarawa, Ngati Kahu) Population Health Analyst Planning and Funding

Healthy Communities – Mauriora!

The policy maker’s lament!!

Steven Gene Wold, b.1941

Page 39: Barry Smith (Te Rarawa, Ngati Kahu) Population Health Analyst Planning and Funding

Healthy Communities – Mauriora!

And so - back to the future