Government urged to prioritise prevention as chronic disease costs surge by $13 billion

The Australian government is facing renewed calls to invest in preventative health measures, as the cost of treating chronic diseases surged by $13 billion in just one year.

New data from the Australian Institute of Health and Welfare’s (AIHW) Health System Spending on Disease and Injury in Australia 2022–23 report highlights a concerning trend in healthcare expenditure.

The report revealed that health system spending on disease rose from $159.3 billion in 2021–22 to $172.3 billion in 2022–23 – an 8.2% increase. Chronic diseases accounted for nearly half of the total, with $82 billion spent on conditions such as cancer, cardiovascular diseases, and musculoskeletal disorders. Among specific cancers, prostate, non-melanoma skin, breast, and bowel cancers consistently topped expenditure lists over the past decade.

Adjunct Professor Terry Slevin, CEO of the Public Health Association of Australia (PHAA), emphasised the critical need for preventative strategies.

“In addition to the harms of these preventable diseases, each person living with such conditions experiences pain, suffering, a lower quality of life, and, in too many cases, premature death,” Professor Slevin said.

Professor Slevin highlighted the glaring disparity in health spending, with only 2% of every $100 allocated to public health initiatives.

“This reinforces the need to invest in prevention. We’ve got to revisit that, if for no other reason than the inexorable, growing cost of managing these preventable diseases,” he urged.

The call for action comes amid growing concern over diabetes, which affects nearly 1.5 million Australians registered with the National Diabetes Services Scheme (NDSS) as living with diabetes and an estimated half-million undiagnosed individuals. On World Diabetes Day last week, Diabetes Australia Group CEO Justine Cain warned of the escalating costs associated with inadequate diabetes management, which stands at $3.4 billion annually.

Innovative treatments like Eli Lilly’s Mounjaro (tirzepatide) offer promising solutions. New 3-year data reveals that the drug provides significant benefits for people with obesity and pre-diabetes, including substantial, sustained weight loss and a 94% reduced risk of progression to type 2 diabetes. Despite these findings, questions remain about why the treatment is not yet funded under the Pharmaceutical Benefits Scheme (PBS).

“If we truly prioritise prevention and invest in it, it has multiplying effects at an individual and at a societal level,” said Anne Harris, Managing Director for ANZ & Developed Asia at Pfizer in a recent interview with Health Industry Hub.

“The investment in preventative health goes beyond the benefits to our healthcare system. It has secondary benefits to our society. When you look at it in its totality, there is a compelling argument for us to be bold about it right now,” Harris added.

Echoing this sentiment, Professor Slevin remarked, “We strongly encourage the Australian Government to boost investment to 5% of total health expenditure on prevention. This will help ease pressures on our hospital systems in the future, but also means people will live healthier, and for longer.”

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