Friday, August 08, 2025

Our Wonderful Health Service Ist Kaput. We Must Learn From OZ! - Where Does ALL THAT Money Go?

 Sam Ashworth-Hayes       Australia proves we don’t have to suffer under the NHS.

A mix of public and private healthcare providers would be a tonic for Britain.

07 August 2025 8:00am BST

If I had to summarise the NHS in two numbers, they would be 27 and 18. The first – £27.5bn – is the liability for botched maternity care since 2019, when our world-beating health system has left women and infants crippled or dead. The second, £18bn, is roughly the amount the NHS spent on maternity services over the same period.

Read through the documents the NHS provides, and you will find the usual bland statements about “avoidable errors” and “devastating consequences” for mothers, children, families and “the NHS staff involved”. Actual meaningful improvements are thin on the ground, with the Care Quality Commission rating two thirds of maternity units inspected as “requires improvement” or “inadequate” for safety.

Perhaps more in line with health service thinking is a 2018 appeal from the chief executive of the NHS confederation to cut compensation for clinical negligence.

It is an unfortunate observation that the scandal-ridden state of NHS maternity services isn’t particularly unusual: in every field of care, the incompetence of the health service is killing people who would otherwise have had a chance at living.

Over on social media, an appeal for Britons to share stories “about the time the NHS tried to kill you” has now been viewed 3.7 million times in around 36 hours. Heartbreaking lists of dead siblings, dead children, lost limbs and botched surgeries have come rolling in.

That almost everyone in Britain seems to have a story where the NHS has catastrophically screwed up their care, or the care of someone close to them, isn’t a strange coincidence. Hard numbers show that the NHS, to put it bluntly, is awful.


Infant mortality rates are 16pc higher in Britain than in peer countries. Breast cancer survival rates are well behind average. Fatality rates for heart attacks and strokes are higher. 
The UK’s treatable mortality rate – the rate of deaths which could have been averted with better healthcare – is 69 per 100,000 people, adjusted for age. The equivalent rate in Australia, to pick an example not entirely at random, is 46 per 100,000.
It would be tempting to say that this is a matter of NHS resources. The UK has fewer doctors for every 1,000 inhabitants (3.2) than the United States (3.6), Ireland (4.1) or Australia (4). 
We also lag behind Bulgaria (4.9), Russia (3.8), and Kazakhstan (4) among many others. We also have fewer CT and MRI scanners – roughly one fifth the level of Australia – and fewer hospital beds.

But in financial terms, this wouldn’t quite be right. Adjusted for price levels, we spend considerably more per person than countries like Japan, Italy and New Zealand, while performing far worse in terms of treatable deaths. And when the NHS does get resources, it wastes them.


Productivity in the health service has slumped back to its level in 2012, with all the technological gains since then swallowed by the sheer inability of the organisation to change and adapt.
The core problem is one the health service has been grappling with since its foundation. There are no real price signals – the GP contract is still largely based on the characteristics and number of patients on a practice’s books, rather than on actual work done – and there is no market where patients choose between providers based on their successes and failures.It’s certainly true that the resulting system is fair, in that it fails to treat rich and poor alike. But it’s untrue to claim that it somehow avoids trade-offs between people when deciding who gets care.A fully private healthcare system allocates treatment based on your ability to pay. The British system, meanwhile, allocates it based on your ability to wait. The result is spiralling waiting lists, without the additional resources brought into the system that a monetary system provides.
Moreover, a fully private system isn’t the only alternative on offer. The US healthcare model has been used to scare the public for decades, trotted out every time NHS reform has been suggested. I’ve never seen the Australian system used as a scare tactic, and that’s probably because British people know it works.

The Australian model is a hybrid. There is universal insurance in the form of Medicare, and there is private insurance purchased from the market. Healthcare providers are a mix of public and private.

High earners who don’t choose to buy an “appropriate level of private patient hospital cover” pay a tax surcharge of between 1pc and 1.5pc of their taxable income to encourage self-reliance. Far from following Lord Kinnock’s call for tax raids on private healthcare, there’s a system of tax rebates for those who take out policies.

The result is a system that provides excellent, convenient healthcare. Patients on the 7.4 million NHS waiting list have been on it for an average of 95 days. The average patient in Australia goes from diagnosis to surgery within 46 days. It works for patients, who get better outcomes. It works for doctors, who are voting with their feet.

Junior doctors, in particular, who face random allocation to training places and competition from overseas graduates, must be sorely tempted. And it certainly works for the taxpayer.


Add up spending across the public and private sectors, and Australia spends a little under 10pc of its GDP on healthcare. Britain spends 11pc. One per cent of GDP might not sound like a huge amount, but it is.

In a UK context, it’s about £26bn a year: enough to cut roughly 4p off the basic rate of income tax, or cut your council tax bill by two thirds. Or, of course, it could close half of the £50bn black hole in the public finances that Sir Keir Starmer and Rachel Reeves may need to backfill by the autumn.

Healthcare is far from the only area where Britain has something to learn from its offspring. Australia has us whipped in living standards, government efficiency, taxation from income and fuel, pensions, and the rest.

Once we’ve dealt with health, we could do a lot worse than sending our own Iwakura Mission down under to learn from our cousins. But first things first: let’s kill the NHS before it kills us. DT.

Birdie.