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HSH717 Health Economics 1, Deakin University, Australia

Breast Cancer In Australia


Question: Contrast technical and allocative efficiency in the health care sector. Discuss how efficiency of managing a health condition such as obesity in the health care sector has changed over time. Provide evidence from the literature of real examples of changes in the health care management of your chosen health condition that illustrate technical and allocative efficiency to support your answer.

Answer: Introduction: In the given essay, we would be evaluating the growing concern of the health condition which is of the Breast cancer within Australia (Bali, 2015). Through this would estimate how there would be a contrasting technical along with the allocation efficiency that would be related to the health care sector. Through this essay, we would be discussing the efficiency of managing and also relating to the health condition for example Breast cancer in Australia and understand how the health care sector would also periodically change over time. With this, we would be evaluating the literature along with drawing real examples of changes with relation to the health care management along with the chosen health condition which would help to determine the technical and allocate efficiently in support of the theories and the paradigm drawn.

Relevant Concepts: The concept of the economics which can be applied here would be of the-:

Subsidy in the Healthcare System: The subsidy introduced in the healthcare system, would cause the low pricing to the customers and the producers can equally demand the same pricing, The healthcare pricing would be subsidized through the mode of the federal government funds along with the providing support from the Medicare. It is also a related universal public health insurance along with the program that can also be provided to be free or subsidized that can help to access through the care for Australian citizens along with the residents in terms of the permanent visa (Bali, 2015).

HSH717 Health Economics.jpg

Source (Bardach, 2014)

The process of the subsidy, such as the government providing health care and the related support that can be provided to the people. Often the government subsidies help in the demand curve to shift towards the right as shown in the graph and also make the supply curve more available, due to the extensive government support and the care. The subsidiary is a balance of the care and support to the healthcare system (Bardach, 2014).


Welfare System: The approach of the welfare system is also correlated with the will a person would be able to deliver in point A. The welfare system is the government initiative program that can help to deliver and support the people with their funding and the related programs. Through the welfare support as per the given graph, the consumer has to pay A dollars, but due to the welfare support of the government only can pay the amount P.

Hence in here, it would also create an issue of the "surplus" that can be denoted with the A minus P dollars. It would also be subjective to the support and the related similarly which would hold against the producers. It would also be a willingness to be paid and sell through the point at the E price. It can help to sell at the point P that would be gaining insight from the P-E and the gap determined in here would be of the welfare dollars (Bardach, 2014). Hence the dollars and the utility concept is driven in here would be a resulting approach that can make it more subjective at the existing situation,

In here there is also an approach to determine how there can be a deadweight loss and it would help to evaluate the correlation As an example the deadweight loss would be when the Australian government would be applying the taxes and it would create an issue of the buyer who has to pay P1 and only Q1 with respect to the given good sells. It has been also anticipated how there can be a fewer people that can also benefit from the given trade, and it would also be building on the tax discouragement that can cause the marginal traders to be trading. It is defined per the below as shown color area of the deadweight loss, that can help to evaluate the potential benefit goes that is simply to be lost.

HSH717 Health Economics 1.jpg

Source (Fawcett, 2015)

Examples: The breast cancer women are the 16,852 women that are diagnosed from breast cancer risks and the diseases in Australia (Craig, 2010). It is also calculated with the risk of having it in the future or getting it as of ow by the age of the 85 which would be 1 in 8 for women. there has been extensive support of the Government that has caused the Cancer Council to also be able to fund with the related researchers that can help to develop with the new treatments that would be able to treat breast cancer (Fawcett 2015).


The understanding of the welfare and the subsidies would when the costing has to be paid by the people. It has been seen that Government subsidy comes in the form of the Medicare that can actually help to save 75% of the schedule fees when availing in the hospital services.

Similarly, in the Health care in Australia, it can also be dependent on the mixed system: that is connected to the universal health care(public) along with the key requirement of the private providers (insurance). It is a Medicare is Australia's that is extensively related to the universal health insurance scheme and it is also subjectively be related to the subsidies that can cost the medical costs in Australia which would extensively be dependent on the for Australian citizens along with the issues of the permanent residents.

It has been noted how during the year of 2013 to has cost approximately about the cost for 6.3billion which is approximately 0.4% of Gross Domestic Product, or evaluated as the $272 per capita) that has been paid by the cancers Australian people that have been diagnosed during 2009-2013 in comparison to the other types of the cancer such as colorectal cancer costing $1.1billion) lung cancer costing about the $0.6billion (Hewison, 2015).

Also, the government aids in the life support to the health system cost related to the cancer treatment and has saved approximately about the $33,400 per patient during 2008, that was only to be paid by the $5000 that have been borne by individuals. The government also supports by providing a free of the BreastScreen Australia that comes under the national mammographic breast cancer screening program that has been provided to the Australian women. There are also the free mammograms that have been extensively been available since the two years and it covers the Australian women who belong to the age group of the 40 and as such have a no symptoms of breast disease can also be evaluated on the basis of it.

There are also around 75% in relation to the breast cancers which could occur and cover about the age of 50 (Holdaway, 2015).

Strengths & Weakness: The paradigm of Australia comes under the developed country and with the government aid and the subsidy provided and to be ranked with the best six health care systems globally that also have limited services in terms of the population (Howie, 2009). The framework of the Australian health care system is also attributed to the public and private health care, that can even cause spending to be done by public and private stakeholders within the given industry. As per the Australian health care system it also has been divided into three tiers such as the government: local, state, and federal level. 

In here the government main role is to finance, invest and support the health care system. This is also a resultant approach that would help to attain the 70% in relation to the health care (such as the government, but not at all the federal) to be also be financed through the Federal government (Kruk, 2016).

The government aides in providing the friendly policies and the related personalities that would be subjective to the Local and State Governments which would be responsible for the implementing and delivering services (Jakovljevic, 2017). It is the adherence by the Federal Government that can also provide a health care system in Australia that also has an extensive role in the health policies along with the allocating money subjective to the health care system, that can help to aid the health services. For example, the example of health policy is Medicare, which is the federally funded along with that administered government health insurance scheme that can be aided and be guided by the administration of the Federal Government (Kruk, 2016).

Also, the federal initiatives also support to provide the pharmaceutical benefits and also an additional provision of funds that is related to the public hospitals which would be attributed to the population health programs. In here the approach of the Federal Government would be dependent on the several health systems that match with the providing and aiding the private health insurance and also with the medical services and the related pharmaceuticals, and relation to the key funding and regulatory responsibility that can cover the government subsidized residential care facilities (Mohanan, 2015)

Weakness: The subsidy can cause the producer to overcharge the customers and also they would invest in the expensive trade and trick to get expensive medicines.

The other weakness would be more allocation of the funds which would go in the healthcare system and the people have to bear extensive taxes.

Relevant Literature: For the thoughts presented by the Saeed Alraga (2017), in his article "Comparative Analysis of Three Different Health Systems Australian, Switzerland, and Saudi Arabia", it has fully helped to understand how the Australia government steps up and aids to support the designing and functioning related to the systems and of the country's health care system that has been exclusively been funded and be part of the consumer participation, along with the overall governance that syncs in the national level (Rawat, 2016). The author has also found how there has been an exclusive discussion of the funding model of the health care and it has significantly risen the costs of the healthcare system that belongs from the public and private contributions related to the payment of health care insurance that is dependent on the basis of the government funding in terms of the health care services. It is also related to how the third would be entitling the sole responsibility that can help to give the health care services (Russell, 2015).

Conclusions: The Australian Women having breast cancer are largely supported and aided by the government support and the care, The Australian government has well articulated and designed the health care system that is extensively been dependent on the governance, overall design along with the requirement of the function that also has a support to the range of strengths and weaknesses belonging to the system. The scope of the economic learned in here is to the scope of the welfare economies and providing the subsidiary in the form of the free mammography screening and the government-sponsored Medicare that can help to deal with the given system and improvements. It would also be a health system depending on an individualized basis. Through this, it would be dependent on the limitations and understanding of the influencing factors that can be subjective to the cultural values along with the economic stability for each country (Shankar, 2015).


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