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Digitally Enabled Service Models for Australia’s Residential Aged Care Technology, People, Processes and Policy A Whitepaper from the ACS Telecommunications Board 1. Introduction Quality of life is just as important for older Australians as it is for the rest of the population. Older Australians generally want to remain as independent as practical, in control of how and where they live; to stay connected and relevant to their families and communities; and to be able to exercise some measure of choice over their care and daily life. For the majority, increasing frailty and care needs means that their final years will be spent living in a residential aged care facility. These facilities provide a community living environment with varying levels of care, from independent living units, through low care, to high care and dementia specific needs. Moving into residential aged care is usually a reluctant decision for the individual and their family, associated with a loss of control, connectedness and choice; often made as a last resort when families feel unable to provide adequate care for their elders at home. Expectations around quality of life in their new home are not high. Residents are usually physically isolated from the rest of the community, family contact is limited, staff are often not highly skilled, and wages are often low. The Health Sector, including provision of aged care services, overtook the Retail Sector in 2011 as the largest employer in Australia and yet it continues to struggle with growing challenges in health service delivery. Despite the estimated spend of $147b in 201213 1 , the sector faces long term challenges including the changing case mix driven by Australia’s ageing population, and substantial increases in levels of chronic disease. At the same time, many rural and regional areas in Australia are underserved, with limited access to appropriate care resulting in higher hospitalisation rates and poorer health outcomes for people living outside major urban centres. Compounding the challenge, the sector faces widespread staff shortages as our ageing health workforce heads for retirement (an estimated shortfall by 20,000 or more nurses by 2025) 2 . In 2012 in remote Australia, there were 1302 FTE nurses and 243 FTE clinicians per 100,000 residents compared with 1134 nurses and 396 clinicians in major cities 34 . Nurses and clinicians in remote and very remote Australia also worked longer hours than their counter parts in major cities (for 1 AIHW, “Health expenditure Australia 201213” http://www.aihw.gov.au/publicationdetail/?id=60129548871 2 Health Workforce Australia, “Workforce Australia 2025 – Doctors, Nurses and Midwives” https://www.hwa.gov.au/ourwork/healthworkforceplanning/healthworkforce2025doctorsnursesandmidwives 3 “Medical Workforce Force 2012”, AIHW http://www.aihw.gov.au/WorkArea/DownloadAsset.aspx?id=60129546076 4 “Nursing and Midwifery Workforce 2012”. AIHW, National health workforce series no. 6. Cat. no. HWL 52.) http://www.aihw.gov.au/WorkArea/DownloadAsset.aspx?id=60129545314

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Page 1: Item 7 - Digitally Enabled Service Models for Australias Residential …i.nextmedia.com.au/Assets/Digitally_Enabled_Service... · 2015-02-06 · Digitally(Enabled(Service(Models(for(Australia’s(Residential(Aged(Care((Technology,People,ProcessesandPolicy(AWhitepaper(from(the(ACS(Telecommunications(Board((1

   

 

       

Digitally  Enabled  Service  Models  for  Australia’s  Residential  Aged  Care    Technology,  People,  Processes  and  Policy  

A  Whitepaper  from  the  ACS  Telecommunications  Board  

 

1. Introduction    Quality  of  life  is  just  as  important  for  older  Australians  as  it  is  for  the  rest  of  the  population.    Older  Australians   generally  want   to   remain   as   independent   as   practical,   in   control   of   how   and  where  they   live;   to   stay   connected   and   relevant   to   their   families   and   communities;   and   to   be   able   to  exercise  some  measure  of  choice  over  their  care  and  daily  life.      

For  the  majority,  increasing  frailty  and  care  needs  means  that  their  final  years  will  be  spent  living  in   a   residential   aged   care   facility.     These   facilities   provide   a   community   living   environment  with  varying  levels  of  care,  from  independent  living  units,  through  low  care,  to  high  care  and  dementia-­‐specific  needs.      

Moving  into  residential  aged  care  is  usually  a  reluctant  decision  for  the  individual  and  their  family,  associated  with   a   loss   of   control,   connectedness   and   choice;   often  made   as   a   last   resort   when  families   feel   unable   to   provide   adequate   care   for   their   elders   at   home.     Expectations   around  quality  of   life   in  their  new  home  are  not  high.    Residents  are  usually  physically   isolated  from  the  rest  of  the  community,   family  contact   is   limited,  staff  are  often  not  highly  skilled,  and  wages  are  often  low.      

The  Health  Sector,  including  provision  of  aged  care  services,  overtook  the  Retail  Sector  in  2011  as  the  largest  employer  in  Australia  and  yet  it  continues  to  struggle  with  growing  challenges  in  health  service   delivery.   Despite   the   estimated   spend   of   $147b   in   2012-­‐131,   the   sector   faces   long   term  challenges  including  the  changing  case  mix  driven  by  Australia’s  ageing  population,  and  substantial  increases  in  levels  of  chronic  disease.    At  the  same  time,  many  rural  and  regional  areas  in  Australia  are  under-­‐served,  with  limited  access  to  appropriate  care  resulting  in  higher  hospitalisation  rates  and  poorer  health  outcomes  for  people  living  outside  major  urban  centres.    Compounding   the   challenge,   the   sector   faces   widespread   staff   shortages   as   our   ageing   health  workforce   heads   for   retirement   (an   estimated   shortfall   by   20,000   or  more   nurses   by   2025)2.   In  2012  in  remote  Australia,  there  were  1302  FTE  nurses  and  243  FTE  clinicians  per  100,000  residents  compared  with  1134  nurses  and  396  clinicians   in  major  cities3  4.    Nurses  and  clinicians   in  remote  and  very   remote  Australia  also  worked   longer  hours   than   their   counter  parts   in  major  cities   (for  

1  AIHW,  “Health  expenditure  Australia  2012-­‐13”    http://www.aihw.gov.au/publication-­‐detail/?id=60129548871    2  Health  Workforce  Australia,  “Workforce  Australia  2025  –  Doctors,  Nurses  and  Midwives”  https://www.hwa.gov.au/our-­‐work/health-­‐workforce-­‐planning/health-­‐workforce-­‐2025-­‐doctors-­‐nurses-­‐and-­‐midwives      3  “Medical  Workforce  Force  2012”,  AIHW  http://www.aihw.gov.au/WorkArea/DownloadAsset.aspx?id=60129546076    4  “Nursing  and  Midwifery  Workforce  2012”.  AIHW,  National  health  workforce  series  no.  6.  Cat.  no.  HWL  52.)  http://www.aihw.gov.au/WorkArea/DownloadAsset.aspx?id=60129545314    

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clinicians,     46.3   versus   42.7   hours   per   week)   Finally,   in   2010,   the   Productivity   Commission  estimated  the  productivity  “gap”  in  the  Health  Sector  to  be  between  10  -­‐  20%5.        These   challenges   place   substantial   pressure   on   Australia’s   economy,   living   standards   and  government  finances  and  will  continue  to  do  so.  Already  an  estimated  20  cents  from  every  dollar  of  Government  revenue  raised   is  going   into  the  provision  of  health  care,  and  this   is  predicted  to  rise   to   40   cents   by   20436.  Error! Reference source not found.   shows   the   estimated   growth   in  health   sector   costs   including   a   specific   component   associated   with   addressing   challenges  associated  with  Australia’s  ageing  population.        Fundamental  reform  is  required  to  overcome  the  delays,  discontinuities,  constraints  and  shortages  that  currently  exist  in  the  provision  of  aged  care  services,  and  to  respond  to  future  challenges.    The  industry   understands   some   the   challenges   that   lie   ahead   and   many   residential   aged   care   and  community  care  providers  are  examining  new  models  of  care  delivery,  including  telehealth  and  in-­‐home  monitoring,  to  potentially  extend  their  services  to  more  Australians  living  independently.        

Figure  1.  Total  Australian  Government  Health  Expenditure  with  and  without  non-­‐demographic  growth  (2009-­‐10)  

2. Challenges  in  Health  Delivery  for  Aged  Care  Changes  to  the  aged  care  system  over  past  decades  have  increased  the  range  and  quality  of  care  and  support  available  to  older  Australians.    However,  there  are  significant  variations  in  the  quality  of  services,  and  the  media  provides  ongoing  evidence  of  specific   instances  where  the  system  has  failed  to  meet  its  duty  of  mental,  physical  or  health  care  for  some  residents.    One  example  is  the  ABC   Lateline   report   of   15   July   2013,   which   reported   on   some   specific   incidents   with   appalling  consequences  for  the  individuals  and  their  families7.    Sadly,  these  types  of  incidents  continue  to  be  

5  “Public  and  Private  Hospitals:  Multivariate  Analysis,  Supplement  to  Research  Report”,  Productivity  Commission,  2010  http://www.pc.gov.au/__data/assets/pdf_file/0008/97964/supplement.pdf    6  “Australia  to  2050:  Future  Challenges”,  Department  of  Treasury,  January  2010  http://archive.treasury.gov.au/igr/igr2010/report/pdf/IGR_2010.pdf    7  Lateline.  www.abc.net.au/lateline/content/2013/s3803710.htm.l.ABC,  15  July,  2013.  

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reported,  making  it  clear  that  there  is  more  work  to  be  done  to  improve  the  current  situation  and  ensure  all  residents  receive  respectful  care  of  an  adequate  standard.      

A   range   of   recent   reports   on   Australia’s   aged   care   sector   has   identified   a   range   of   needs   and  challenges  that  need  to  be  addressed.  An  example   is  provided  by  the  Department  of  Health  and  Ageing    report8.        These  challenges  include:  

•   Existing   unmet   demand,  which   is   reducing   incentives   around   efficiency   and   quality   of  service  delivery,  and  providing  a  limited  choice  of  providers  for  those  entering  the  systems  

•  Changing  community  expectations  around  greater  diversity,  and  higher  expectations  

•   A   highly   fragmented   industry,   associated   with   a   wide   variety   of   business   practices,  difficulty   in   standards  development,  and   reduced  efficiency.     The  aged  care   industry  has  more   than  1400  providers,   the   largest  10  of  which  account   for  only  20%  of  government  spending.      

•   Forecast   direct   cost   increases   of   more   than   $70b   per   annum   (2011   values,   inflation  adjusted)  between  2004  and  2043,  due  to  future  demand  for  aged  care  and  related  health  services,  corresponding  to  5.8%  of  GDP9.  

•  Future  workforce  challenges,  with  a  forecast  simultaneous  age-­‐related  tightening  of  the  labour  market,  and  an  increased  demand  for  aged  care  services.  

Fundamental  reform  is  required  to  overcome  the  delays,  discontinuities,  constraints  and  shortages  that  currently  exist,  and  to  respond  to  future  challenges.    The  need  has  been  identified  in  the  2004  Hogan  Review10,   the  2009  National  Health  and  Hospitals  Reform  Commission  Report11,   the  2010  Henry   Review12,   and   2011   Productivity   Commission   Inquiry13.     As   our   population   ages   over   the  next  20  years,  more  Australians  will  be  requiring  residential  aged  care,  and  it  will  be   increasingly  difficult   for   a   system  under   growing   stress   to   address   quality   issues,   resolve   funding   issues   and  innovation  around  service  delivery  to  improve  productivity  and  the  quality  of  life  for  its  residents.      

The   industry   understands   some   the   challenge   that   lies   ahead.     In   anticipation,  many   residential  aged   care   and   community   care  providers   are   already  examining  new  models   of   care  delivery   to  potentially   extend   their   services   to  more   Australians   living   independently.     This  may   lessen   the  growth   in   demand   for   people   entering   residential   aged   care   facilities;   reduce   government  budgetary  pressures  in  funding  this  growth,  and  enable  providers  to  extend  the  scope  and  impact  of  their  operations.    The  opportunity  for  growth  provides  a  positive  path  to  work  with  the  industry  around  developing  and  implementing  a  practical,  sustainable,  evidence-­‐driven  reform  agenda  that  addresses  the  needs  of  all  stakeholders  in  this  ecosystem.        

2.1. Understanding  the  sector  Government   funding   of   Australia’s   aged   care   system   is   currently   around   $10b   per   year   across  community  and  residential  services.  As  at  30  June  2011,  there  were  around  169,000  people  living  

8  Department  of  Health  and  Ageing.  http://www.health.gov.au/internet/main/publishing.nsf/Content/ageing-­‐rescare-­‐servlist-­‐providers-­‐services.htm#as02    9  “Year  Book  Australia,  2012”,  Australian  Bureau  of  Statistics.  http://www.abs.gov.au/ausstats/[email protected]/Lookup/by%20Subject/1301.0~2012~Main%20Features~Value%20of%20goods%20and%20services%20produced%20by%20Australian%20Industry~240    10  “Review  of  Pricing  Arrangements  in  Residential  Aged  Care”,  Department  of  Health,  April  2004,  http://www.health.gov.au/internet/publications/publishing.nsf/Content/health-­‐investinginagedcare-­‐report-­‐index.htm    11  “National  Health  and  Hospitals  Reform  Commission  Report”,  June  2009,  http://www.health.gov.au/internet/nhhrc/publishing.nsf/Content/nhhrc-­‐report    12  “Australia's  future  tax  system:    Report  to  the  Treasurer”,  Dept  of  Treasury,  December  2009,  http://taxreview.treasury.gov.au/content/Content.aspx?doc=html/pubs_reports.htm    13  “Caring  for  Older  Australians:  Inquiry  Report”,  Productivity  Commission,  August  2011,  http://www.pc.gov.au/projects/inquiry/aged-­‐care/report    

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in  residential  aged  care,  nearly  all  on  a  permanent  basis.  Of  these,  77%  were  aged  80  and  over  and  57%  were  aged  85  and  over,  representing  around  a  quarter  of  the  85+  demographic.    The  industry  sector   is   highly   fragmented,  with   around  1,200   residential   aged   care   service   providers   receiving  government   funding   across   2,760   facilities   in   2010-­‐1214.     There   are   no   dominating   national  organisations:     the  10   largest  providers  accounted   for  only  20%  of   the  Government   funding  that  year15.        An  additional  proportion  of  older  Australians  are  still   living  in  the  community,  either  in  their  own  homes  or  with  family  or  carers,  and  receiving  support  from  Community  Care  services,  as  shown  in  Error! Reference source not found.16.    In  2009  there  were  645,000  Australians  at  this  early  stage  of   their  care  needs   journey,   including  approximately  60%  of   the  80+  age  bracket.     In  2010,   their  support  services  were  provided  by  519  Community  Care  organisations,  275  of  which  also  provided  residential  aged  care  services17,  making  them  critical  stakeholders  in  the  transitional  pathway  into  residential  aged  care.    

Table  1:    Number  of  older  Australians  accessing  formal  care,  2009  

Formal  care   People   %  total  Aust  Population  aged  65+

Residential  Aged  Care 158,863 19.7      Low  level   43,950 5.5      High  level   114,913 14.3

Community  Care   645,833 80.3      Home  and  Community  Care  (HACC)   595,056 73.9      Community  Aged  Care  Package  (CACP)   42,694 5.3      Extended  Aged  Care  in  the  Home  (EACH)   5,515 0.7      Extended  Aged  Care  in  the  Home  –  Dementia  (EACH-­‐ -­‐D)   2,568 0.3

Total   804,696 100.00%    

As  early  as  2003,  an  ABS  survey  highlighted  that  there   is  already  evidence  of  unmet  demand  for  aged   care   services.     The   survey   reported   that   of   the   2.3  million   people   aged   65   years   and   over  living   in   households   at   that   time,   43%   (around   1   million)   expressed   a   need   for   some   form   of  assistance  to  help  them  stay  at  home.    Of  the  43%  needing  assistance,  31%  (or  306,100)  reported  that   their   needs  were  partly  met,   and  5%   (or   51,800)   report   that  none  of   their   needs  was  met,  even  partially18.  

 On  the  supply  side,  community  expectations  around  aged  care  are  changing.    There   is   increasing  diversity   among   older   Australians   in   their   preferences   and   expectations.     These   include  expectations  of  a  higher  quality  of  life  than  previous  generations,  a  greater  desire  for  independent  living,   and   for   culturally   relevant   care.   This   is   particularly   relevant   for   culturally   diverse,  linguistically  diverse,  sexually  diverse,  and  indigenous  communities.    In  future,  Australia’s  ageing  population  is  projected  to  drive  further  increases  in  demand  for  aged  care   services.    Error! Reference source not found.2   shows   Australia’s   demographic   profile   in  2002   and   that   projected   for   2101.     By   2050,   the   total   number   of   older   Australians,   officially   14  “Residential  aged  care  in  Australia  2010-­‐11:  a  statistical  overview.  Aged  care  statistics  series  no.  36.  Cat.  no.  AGE  68.”  Australian  Institute  of  Health  and  Welfare;  and  ABS  3101.0  -­‐  Australian  Demographic  Statistics,  Dec  2012.  15  “Data  on  approved  service  providers  and  aged  care  places”,Department  of  Health  and  Ageing.  June  2012.  16  “Future  of  Aged  Care  in  Australia,  A  public  policy  discussion  paper  prepared  for  National  Seniors  Australia”,  Access  Economics,  Access  Economics,  September  2010.  p12  http://www.nationalseniors.com.au/icms_docs/Future_of_Aged_Care_Report.pdf.  17  http://www.health.gov.au/internet/publications/publishing.nsf/Content/hacc-­‐pub_mds_sb_07-­‐08.htm  ,  Based  on  2008  data:  18  “Older  Australians  at  a  glance”,  Australian  Institute  of  Health  and  Welfare.  2007.  

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defined  as  anyone  aged  65  or  over,  will  increase  from  3.0  million  (13.3%  of  the  population)  in  2010  to   7.5   million   (22.2%   of   the   population)19.     The   number   of   Australians   aged   85   and   over   is  projected  to   increase  as  well,   from  0.4  million   in  2010  to  1.8  million  (5.1%  of  the  population)  by  2050.          

Figure  2.  Australia’s  changing  demographic  profile  

 The  demographic  changes  are  mitigated  somewhat  by  increases  in  healthy  longevity.    However,  by  2050  it  is  expected  that  over  3.5  million  older  Australians  will  access  aged  care  services  each  year,  with   around   80   per   cent   of   services   delivered   in   the   community20.     An   estimated   475,000  Australians   are   currently   primary   carers.     However,   the   relative   availability   of   informal   carers   is  expected   to   decline,   reducing   the   ability   of   some   older   people   to   receive   home-­‐based   care   in  future21.              The  shift   in  age  profile  has   significant   implications   in   terms  of   the  nature  and  cost  of  associated  health  services.    These  increases  are  due  to  management  of  dementia,  diabetes,  and  other  chronic  diseases   associated   with   longevity,   as   well   as   palliative   care   and   falls.     Organizations   operating  residential  aged  care  facilities  have  a  duty  of  care  towards  their  residents,  which  includes  enabling  access   to   health   services   at   need,   which   need   to   be   sourced   externally.     There   are   known  difficulties   in   getting   GPs   to   attend   the   facilities,   which   can   result   in   poor   health   outcomes   for  residents,   who   have   been   reported   with   extreme   pain   from   undiagnosed   conditions   or   who  receive   inadequate   or   late   responses   to   potentially   fatal   progressions   of   chronic   conditions   and  infections.    Few  receive  appropriate  palliative  care.    The   ageing   population   is   also   placing   increasing   pressure   on   the   public   hospital   system,   with  anecdotal  reports  that  3-­‐10%  of  all  emergency  department  ambulance  arrivals  are  from  residential  aged  care.  Emergency  department  clinicians  also  report  that  they  arrive  without  a  medical  history  making  treatment  more  difficult.  Many  hospital  managers  have  reported  that  the  scheduling  and  overall  admission  rates  for  older  people  from  residential  aged  care  facilities  could  be  reduced  with  better   coordinated   care  management.    ABS  data   in  Error! Reference source not found.   shows  

19  “Population  projections,  By  age  and  sex,  Australia  -­‐  Series  B.  ABS  3222.0”,    Australian  Bureau  of  Statistics.  Table  B9.2008.  20  “Caring  for  Older  Australians”,  Productivity  Commission.    April  2011.  http://www.pc.gov.au/projects/inquiry/aged-­‐

care/report.    21  “Community  Care  (Facts  and  Figures)”,    Aged  &  Community  Services  Australia.    May  2011:  www.agedcare.org.au/publications        

80-84>85

70-7460-6450-5440-4430-3420-24

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20022101

Males FemalesAge

5 4 3 2 1 0 0 1 2 3 4 5Percent Percent

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that   a   higher   percentage   of   older   Australians   are   admitted   to   hospital   than   other   demographic  groups.      

 Figure  3:    Percentages  admitted  to  hospital  in  last  12  months  (a),  by  Age  and  Sex  

Error! Reference source not found.   shows   the   overall   impact   of   the   ageing   population   on  government   expenditure   on   aged   care   and   related   health   services   between   2003   and   2044.    Required  spending  under  current  models  is  forecast  to  increase  by  5.8%  of  GDP.    This  represents  an  almost  doubling  of  current  costs,  before  the  effects  of   inflation,  and  corresponds  to  $76b  per  annum  in  2011  dollars22.        

Table  2:    related  government  spending  as  %  of  GDP  

22  “Year  Book  Australia,  2012”,  Australian  Bureau  of  Statistics.  http://www.abs.gov.au/ausstats/[email protected]/Lookup/by%20Subject/1301.0~2012~Main%20Features~Value%20of%20goods%20and%20services%20produced%20by%20Australian%20Industry~240.    

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2003-­‐04 2044-­‐45

Direct  spending  on  elderly

Health  careAustra l ian  Government 4.0 7.5 3.5 87.5%State/Terri tory  Governments 1.8 2.8 1.0 55.6%Sub-­‐total 5.8 10.3 4.5 77.6%

Aged  care  &  carersAustra l ian  Government 1.0 2.2 1.2 120.0%State/Terri tory  Governments 0.1 0.3 0.1 100.0%Sub-­‐total 1.1 2.5 1.3 118.2%

Age  pensionsAustra l ian  Government 2.9 4.6 1.7 58.6%Sub-­‐total 2.9 4.6 1.7 58.6%

Total  Direct  Govt  Spending  on  the  elderly 9.8 17.4 7.5 76.5%

Other  Age-­‐related  govt  spending

Australian  GovernmentOther  socia l  safety  net 3.8 3.1 -­‐0.6 -­‐15.8%Education 2.0 1.8 -­‐0.1 -­‐5.0%Sub-­‐total 5.8 4.9

State/Territory  GovernmentsEducation 3.3 2.9 -­‐0.4 -­‐12.1%Sub-­‐total 3.3 2.9

Total  Other  Age-­‐related  govt  spending 9.1 7.8

Total   18.9 25.2

Source:    Economic  Implications  of  an  Ageing  Australia,  Productivity  Commission,  March  2005                                      www.pc.gov.au/__data/assets/pdf_file/0006/13587/ageing1.pdf‎

Item %  of  Govt  Expenditure Increase  in  %  points

%  Increase  

 

3. Telehealth  Pilots  –  Exploring  Digitally  Enabled  Aged  Care  With   the   commencement   of   the   rollout   of   the   NBN   in   2010,   a   number   of   influential   groups  developed   white   papers   and   discussion   documents   including   National   ICT   Australia’s   review   of  Telehealth   projects   in   Australia23   and   the   Australian   National   Consultative   Committee   for  Electronic  Health   in  early  201224.   In  April  2013,  the  National  Telehealth  Society  released  a  report  which  indentified  key  priority  groups  25  

• aged  care  • poorly  mobile  /  disabled  • outer  metropolitan,  rural  and  remote  

 In   early   2013,   the   Federal   Department   of   Health   and   Aging   and   the  Department   of   Broadband,  Communications  and   the  Digital   Economy,   announced  a   fund   for  Broadband  Enabled  Telehealth  Pilots  Program.  The  Program   funded  pilot  projects   to  develop  and  deliver  Telehealth   services   to  NBN-­‐enabled   homes  with   a   focus   on   aged,   palliative   or   cancer   care   services,   including   advance  care  planning  services.  Whilst  not  yet  fully  complete,  projects  within  the  program  are  expected  to  demonstrate   opportunities   for   the   extension   of   Telehealth   services   in   the   future   as  well   as   the  

23  “Telemedicine  in  the  context  of  the  National  Broadband  Network”,  National  ICT  Australia  report  for  Department  of  Broadband,  Communications  and  the  Digital  Economy,  June  2010.  http://www.nicta.com.au/__data/assets/pdf_file/0020/31538/4421_publication_Telemedici_3640.pdf    24  “A  National  Tele-­‐health  Strategy  for  Australia”,  Australian  National  Consultative  Committee  for  Electronic  Health,  2012  http://www.globalaccesspartners.org/joint-­‐ventures/ancch    25  “Towards  a  National  Strategy  for  Tele-­‐health  in  Australia  2013  -­‐  2018”,  National  Tele-­‐health  Society,  April  2013.    

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business   case   for   doing   so.   The   projects   have   developed   and   are   trialling   services   which  demonstrate  how  

• Telehealth  services  can  be  delivered  to  the  home  in  new  and  innovative  ways,  enabled  by    high  speed    broadband;    

• Health   services   can   become   more   accessible,   in   regional,   rural,   remote   and   outer  metropolitan  areas;    

• Health  related  transport  needs  can  be  reduced;    • Consumers   can   collaborate   and   communicate   with   their   carers   and   health   service  

providers  to  improve  quality  of  care  and  health  outcomes;    • Unnecessary  hospitalisations  may  be  reduced;    • Telehealth  services  are  scalable  and  able  to  provide  an  increased  volume  of  care  without  a  

corresponding  increased  cost;    • Location  dependent  or  regional  health  workforce  skills  shortages  may  be  mitigated;    • Use  of  the  infrastructure  may  increase  healthcare  access  and  reduce  social  isolation;  and    • Communication  during  health  emergencies  could  be  improved;    • Organisational   change  management   required   to   embed   telehealth   service   delivery   as   a  

routine  or  normal  alternative  to  existing  services;  • To  change  workplace  cultures  that  mitigate  against  the  introduction  of  telehealth  services.  

 

 

 

 

 

 

 

Broadband  -­‐enabled  Tele-­‐health  trials  2012-­‐2014  

Funding  Recipient   Name  of  Project   Australian  Government  Funding  (excluding  GST)  

CSIRO   Home  Monitoring  of  Chronic  Disease  for  Aged  Care  

$2,747,975  

CSIRO   Broadband  Enabled  Indigenous  Tele-­‐eye  Care  

$1,300,000  

Feros  Care  Pty  Ltd   My  Health  Clinic  At  Home   $2,461,311  

Hunter  New  England  Local  Health  District  

Cancer  Care  Self-­‐Management  BroadbandTelehealth  Program  

$1,545,640  

Integrated  Living  Australia  Ltd  

Staying  Strong:  Enhanced  Aged  Care  for  Aboriginal  &  Torres  Strait  Islander  

Australians  

$2,104,236  

Leading  Age  Services  Australia  

Serving  Older  Australians  –  a  National  Approach  to  Broadband  Enabled  

Telehealth  

$1,829,236  

The  Flinders  University  of  South  Australia  

Telehealth  in  the  Home;  Aged  and  Palliative  Care  in  SA  

$2,528,095  

The  Royal  District  Nursing  Service  

Integrated  Home  Telehealth   $2,993,037  

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Uniquest  Pty  Ltd   Comprehensive  Telehealth  Assisted  Care   $2,756,241  

 

 

4. Technology,  People,  Processes  and  Policy  Considerations  Many   of   the   telehealth   pilots   included   above   explore   critical   aspects   of   new   digitally   enabled  service  models   for  Australia’s   residential  aged  care  system.    There  are  many  aspects   to  consider  when  exploring  new  service  delivery  models  however  the  criteria  for  any  such  model  must  include:  

• improving  the  health,  wellbeing,  quality  of  life  and  quality  of  care  for  aged  patients  in  care  • enhancing  productivity  for  aged  care  providers,  and  • supporting  greater  transparency  of  performance  and  satisfaction.  

The  rationale  for  this  focus  is  the  need  to  address  the  quality  and  consistency  of  care  in  residential  aged   care   facilities   while   identifying   opportunities   to   optimise   and   improve   the   efficiency   of  existing  practices  and  explore  new  service  delivery  models.    The  scope  also  includes  the  needs  of  older  people  that  require  higher  levels  of  support  to  live  independently.    This  group  is  at  an  earlier  stage  of   the   ‘aged  care   journey’   that  begins  with  community   support   services  and  culminates   in  residential  care.      Including  earlier  stages  of  the  journey  increases  the  potential  to  reduce  demand  on   residential   aged   care   facilities,   creates   opportunities   to   explore   new   models   for   “virtual  residential  aged  care”  and  supports  a  much-­‐needed  smoother  transition  into  residential  care.  

There   are   many   technical   and   non-­‐technical   issues   to   address   in   order   to   make   the   telehealth  pilots   successful.     These   challenges   include   overcoming   challenges   of   integrating   electronic  systems   (documents,   files),   ensuring   data   security   and   data   privacy,   and   being   able   to  unambiguously   authenticate   people   online.     In   the   health   services   sectors,   the   patient   or   client  experience  is  also  critically  important.  A  level  of  trust  and  a  sense  of  confidentiality  is  required  in  dealings   between   the   patient   and   the   health   care   provider.   Under   circumstances   where   the  patient  or  client  is  in  difficult  circumstances  such  as  a  hospital  bed  or  in  confinement,  delivery  of  a  meaningful  tele-­‐presence  experience  is  even  more  challenging.  

Specific  challenges  to  be  addressed  can  be  grouped  into  categories  covering:  

Social  connectedness  and  wellbeing  • Keeping  the  aged  connected  with  the  world  they  were  part  of  before  entering  care  • Opening  windows  into  and  within  the  ‘black  box’  life  of  aged  care  residents    • Outreach  and  volunteering  opportunities  –  enabling  residents  ability  to  contribute  • Encouraging  physical  activity  and  adoption  of  preventive  health  measures  • Particular  needs  of  special  minority  groups,  such  as  indigenous  Australians  • Access  to  government  and  external  services  through  the  digital  economy  

Quality  of  life  and  quality  of  care  

• Options  for  providing  safe  and  efficient  resident  choice  and  control  • Analytics   from   quantitative   and   qualitative   data   enabling   ongoing   evidence-­‐based  

performance   metrics,   quality   assurance,   accreditation,   compliance,   benchmarking,   and  more  transparent  standards  of  care      

• Complaints  management,  providing  residents  and  families  with  a  safe  and  actionable  path  for  complaints  and  about  what  has  become  their  only  home,  without  fear  of  retribution.  

Access  to  and  coordination  of  Health  and  Aged  Services    

• Interactions  with  external  primary,  palliative,  acute  care  providers  and  ambulance    • Care  planning  and  care  management  • Community  and  related  social  services  

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• Wound,  pharmaceutical,  and  chronic  disease  management    • Nursing  services  and  protocols  • Clinical  decision  support  and  risk  stratification  tools  

Business  models  and  business  performance  

• Analytics,   logistics,   scheduling   and   forecasting   to   responsibly   improve   business  productivity  

• Operational  optimisation  that  includes  resident  perspectives  • Technology  support  and  back  end  operation  of  digital  services  • System-­‐wide   benefits,   including   effects   of   cost   shifting   between   community   care,  

residential  aged  care,  acute  care  and  primary  care  sectors.  

Managing  the  transition    

• Digitally  enabled  services  in  the  home,  including  health  and  community  services  • Care  coordination  and  management  • Future  needs  forecasting,  personalised  risk  management  and  stratification    • Demand  pipeline  management  for  care  providers    • New  models  of  care  to  smooth  the  transition  (e.g.  virtual  residential  care  at  home)  

 

Telecommunications  Technology  

Tele-­‐delivery  of  health  services  and  aged  care  services  is  ultimately  dependant  on  the  widespread  availability   of   reliable,   broadband   communications   of   appropriate   quality.     In   2012,   CSIRO  produced   a   report   examining  how  differences   in   bandwidth   and   latency   (see  Figure   4)   between  these   types   of   broadband   connection   can   have   critical   implications   for   telehealth   services26.  National  availability  of  telehealth  and  aged  care  services  require  an  understanding  of  the  maturity  of   provider   offerings   of   appropriate   quality.   Understanding   which   homes   have   access   will   help  clarify   the   scale   of   the   remaining   challenge.       Figure   5   shows   the   Australian   population   density  classified   as   remote  or   very   remote  by   the  ABS27,   these   are   the   same   regions  with   known  poor  health  outcomes.      The  figure  also  shows  the  NBN  rollout  plan  announced  in  201028.    

Whilst  the  rollout  plan  for  the  NBN  is  under  review,  the  overarching  plan  is  that  the  most  densely  populated  areas  will  be  connected  with  optical  fibre  technology.  A  smaller  percentage  of  premises  will   receive   fixed   wireless   connection   wireless,   while   the   most   remote   areas   (marked   with  hexagonal  shapes)  will  connect  using  satellite  broadband.    

As   the  2013  CSIRO   report   shows,   the   features  and  differences  between   satellite   communication  and  other  kinds  of  broadband  need  to  be  taken  into  account  when  considering  the  development  of  telehealth  applications  and  the  services  they  can  deliver.    

 

26  “Caring  for  the  last  3%:  Telehealth  potential  and  broadband  implications  for  remote  Australia”,  CSIRO,  November  2012,  http://www.csiro.au/Outcomes/ICT-­‐and-­‐Services/National-­‐Challenges/Satellite-­‐Telehealth.aspx    27  “Statistical  geography  volume”,  Australian  Bureau  of  Statistics,  http://www.abs.gov.au/websitedbs/D3310114.nsf/home/remoteness+structure#Anchor2c    28  “Satellite  Access  Services  –  Product  Overview”,  NBN  Co.  2010    

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Figure  4.  Telehealth  service  element  framework  –  Bandwidth  and  Interactivity  

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Figure  5.  Map  of  Australia  illustrating  the  Remoteness  Structure  (2006)  and  NBN  Planned  Coverage  (2010)    

Legend Grey - Wireless coverage Red – Optical Fibre town Blue - Transit network Green Satellite coverage

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5. Business  Models  and  Business  Performance  The  telehealth  market   is   immature  although  with  rapid  growth  in  multiple  segments.    The  global  home-­‐based  telehealth  market  segment  was  estimated  at  $3.5b  in  2011,  growing  at  around  22%.    In  Australia,  the  market  is  still   in  infancy,  and  Home-­‐based  telehealth  is  yet  to  be  fully  supported  by  government  clinical  funding  models.      

It   is   worth   focussing   on   what   is   likely   to   be   the   major   challenge   to   growth   of   telehealth   in  Australian,  the  ability  to  charge  for  (or  be  paid  for)  the  delivery  of  a  service  electronically  when  we  have   traditionally   expected   such   a   service   be   delivered   in   person.     Whilst   there   has   been  movement  in  this  area  for  some  limited  service  provision,  this  still  represents  a  major  change  for  health  care  in  Australia.    

An  essential  cornerstone  of  the  process  required  to  create  that  change  is  providing  solid  evidence  for  the  benefits  of  Telehealth  care  models  across  the  Australian  healthcare  ecosystem.    This  means  unambiguously   quantifying   the   benefits,   costs,   effectiveness   and   risks   of   these   new   means   of  health  service  delivery.    It  is  also  essential  that  at  the  conclusion  of  the  Telehealth  trials,  that  the  Telehealth   services  being  deployed  be   ready   to  be   scaled  up  nationally   -­‐   from  an  organisational  and  technical  perspective.    Understanding  costs  and  benefits  provide  the  basis  for  a  business  case  for  new  technology.    

The   second   major   challenge   then   is   to   develop   sustainable   business   cases   for   the   major  stakeholders   in   the   healthcare   system.     Figure   6   shows   a   simplified  model   of   the   Public   Health  Operational   Relationship   Map   and   the   flow   of   funds,   or   relationships,   between   different  stakeholders.    The  complexity  of  this  system  requires  multiple  business  cases  to  be  developed,  and  multiple  relationships  to  be  navigated,  each  with  multiple  drivers  to  be  addressed.    To  put  the  size  of  the  spending  in  context,    

Figure   7   shows   the   percentage   of   funds   expended   by   different   agencies   or   groups   in   both   the  Public  and  the  Private  health  systems.    

The  outcomes  of  the  Broadband  Enabled  Telehealth  Pilot  projects  will   form  an  important  part  of  the  evidence  base  for  sustainably  funded  home  based  telehealth  services,  as  an  emerging  model  of   care   to   improve   management   of   chronic   disease   and   reduce   costs   elsewhere   in   the   Health  system.      

 

 

 Figure  6.    Public  Health  Operational  Relationship  Map  

Federal  Government Depts  &  Agencies

State  Government Public  Hospital

Funding

Service  Delivery

Taxes

SME  Software  Developers

Info  System Vendors

Clinicians

Diagnostic Hardware  Vendors

Products

Reporting

Influencing Clinical  Diagnostic  Services

Patients/Public

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Figure  7.  Sources  of  Funding  –  Public  vs.  Private  funding  in  2010-­‐11  ($m)  

 

6. Recommendations    The  telehealth  market   is   immature  globally  although  with  rapid  growth   in  multiple  segments.     In  Australia,   there   are   relatively   few   companies   currently   offering   telehealth   devices   and   services  although  new  players  are  continuing  to  enter  the  market.      

The  outcomes  of  the  Broadband  Enabled  Telehealth  Pilot  projects  will  add  to  the  growing  body  of  evidence  supporting  the  capacity  for  telehealth  to  deliver  beneficial  change  in  health  services  and  aged  care.  The  trials  will  also  help  better  quantify  the  financial  costs  and  benefits  of  telehealth  and  which  interventions  are  most  ready  for  scaling  up  nationally.    

These  trials  alone  however  will  not  be  sufficient  to  effect  the  major  change  needed  in  the  Health  Sector.       What   is   needed   is   the   development   of   a   sustainable   funding   model   for   home   based  Telehealth  services  based  on  a  comprehensive  socio-­‐economic  analysis  of  telehealth.    

A   major   consideration   is   developing   such   a   sustainable   funding   model   is   enabling   the   GP   to  continue   to   act   as   a   key   player   in   optimum   care   coordination.   This   includes   determining  which  interventions  are  most  appropriate  for  individual  patients.    

A  further  consideration  for  sustainability   is  the  development  of  resources  to  assist  health  service  agencies  to  develop  new  telehealth  services  appropriate  for  the  care  in  the  community.    

 

To  help  move  the  Australian  health  care  system,  a  number  of  recommendations  are  offered  

1. Telehealth  trial  evidence    

Ensure  that  the  benefits,  costs,  effectiveness  and  risks  of  telehealth  service  being  piloted  are   quantified   as   part   of   the   completion   of   the   trials,   to   inform   further   policy  

$252  

$449  $927  

$2,298  

$4,883  

$1,347  

$613  $14,359  

$20,221  

$765  $316  

$671  

$1,159  

$1,446  

DoHA  and  other  federal  government  State  and  local  govt.  Dept.  Of  Veterans'  Affairs  Health  insurance  premium  rebates  Health  insurance  funds  Individuals  

Public:    $39b Private:    $10.8b

Expenditure  on  public  hospital  services,  by  source  of  funds,  2010-­‐11  

($M)

Expenditure  on  private  hospital  services,  by  source  of  funds,  2010-­‐11  ($m)

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development.       This   requires   careful   and   impartial   evaluation   against   the   baseline  conditions.      

2. Scaling  up  pilot  programmes  

It  is  essential  that  at  the  conclusion  of  the  Broadband  enabled  telehealth  trials,  all  services  piloted  be  evaluated  for  scaling  up  nationally.  This  evaluation  must  be  considered  from  an  organisational  and  technical  perspective  as  well  as  considering  what  works  best  (efficacy)  at  lowest  cost  (efficiency)  and  is  financially  sustainable  for  the  businesses  involved.      

3. Appropriate  grade  of  telecommunications  service    

The   deployment   of   telehealth   services   will   not   achieve   widespread   uptake   without  provision   of   appropriate   grade   of   telecommunications   service   from   major   carriers   and  internet  service  providers   in  Australia.   If   the  business  case  for  Optus,  Telstra  or   iiNET  for  example  is  clear,  then  a  critical  barrier  is  overcome.  Encouraging  statements  in  this  regard  are  however  already  being  made.  In  October  2013,  Telstra  announced  it  will  target  home  health  and  aged  care  as  part  of  a  new  healthcare  services  business.  

4. Availability  of  appropriate  tele-­‐communications  service  

Identification   of   tele-­‐health   grade   broadband   service   and   development   of   a   national  availability  map  of  telecoms  regularly  updated  by  providers.    

 

The   Broadband   Enabled   Telehealth   Pilots   build   on   many   years   of   pilots   in   Australia.   They   are  expected   to   provide   services   to   around   2,500   patients   in   over   50   sites   across   Australia   by   June  2015.  This  delivers  value  in  its  own  right,  but  is  a  long  way  short  of  what  is  needed  to  address  the  national  challenge  in  healthcare.    

 

The  healthcare  challenge  in  Australia  is  a  matter  of  national  significance.  Telehealth  offers  a  partial  solution  to  this  challenge  however  to  reach  the  scale  needed  to  meet  the  needs  of  our  nation,  and  to   have   meaningful   impact   on   the   cost   of   delivering   services,   much   needs   to   be   done   beyond  proving  the  technology.  We  echo  the  conclusions  of  the  Australian  Telehealth  Society  in  their  2013  report:    

“We  particularly  seek   further  government,  healthcare  and   industry  sector   ‘ownership’   for  the  creation  of  a  final  comprehensive  document  defining  a  National  Strategy  for  Telehealth  in  Australia,  and  acceptance  of  responsibilities  for  the  actions  and  other  activities  proposed  within  it”