Reflections from the 2025 AFR Healthcare Summit

Emerging themes at the Australian Financial Review’s recent Healthcare Summit were not about incremental reform—they were about wholesale transformation. We are in the middle of a decade that will redefine Australia’s health system, and conversations at the Summit underscored the urgency for leadership, innovation, and cross-sector collaboration to meet this moment.

It is clear the sector is facing an inflection point. Telstra Health Managing Director, Elizabeth Koff warned that we are “sleepwalking into a health system failure.” The debate around profit-sharing between private health insurers and hospitals is only the tip of the iceberg. The challenge is not about margins but about a system under pressure from technology disruptions, a failure to prioritise preventative health measures, and the increasing complexity of care needs in an ageing population. The call for transformative change could not be louder.

New funding models for consideration

Australia’s private hospital funding model must also evolve and a customer-oriented funding system could be a promising alternative. A proposition discussed at the Summit was pathway-based funding—particularly for standard procedures—integrated with wraparound services like mental health support. Andrew Wilson, Group Chief Medical Officer at Medibank suggested trauma care should not end at discharge and mental health recovery must be embedded in the clinical pathway. These models could drive more holistic care while improving long-term outcomes and reducing readmissions.

Pooled funding was another compelling topic. The current siloed funding landscape divided by jurisdiction, service type, and eligibility frustrates consumers and providers alike. There’s an opportunity to create more accessible health pathways that inform and guide consumers to the right care teams, leverage our constrained workforce, and promote prevention to save on expensive acute treatments. More than just cost savings, this model could reduce loneliness and foster better community outcomes by supporting engagement and connection.

A strong focus on preventative health

Robyn Littlewood of Health and Wellbeing Queensland highlighted that 1 in 2 adults have chronic diseases, and that wellness correlates directly to workplace productivity where a person who is well is three times more productive than someone managing chronic conditions. This highlights a remarkable opportunity for increasing Australia’s productivity. Preventative healthcare takes place beyond the hospital walls—in schools, sporting clubs, libraries, and neighbourhood centres. These are places that encourage active living, connection, and healthy habits: places that have not traditionally been included in funded healthcare pathways.

Pressure on workforce supply remains acute

The Department of Health and Aged Care’s recent study was referenced, with a forecasted shortage of more than 70,000 FTE nurses by 2035[1]. Globally, the WHO projects a shortfall of 4.5 million nurses by 2030[2]. These numbers are stark, and the implications were made clear at the Summit: we need to reimagine care delivery by leveraging technology, redesigning care teams, and better utilising less skilled workers in appropriate roles to free up nurses for direct care. As Chris Blake from St Vincent’s rightly observed, “Technology will be the centre of healthcare within the decade.” Elizabeth Koff also summed it up with reference to the “triple jump” required of the health system: a shift from hospital to community care, from cure to prevention, and from analogue to digital. The opportunity here is enormous, but only if we match ambition with investment in digital enablement and cyber security defences that will protect patient data and enhance institutional trust. Brendan Payne, Partner in our Technology & Cyber team says the health sector remains an attractive target for cybercriminals due to the highly sensitive personal data, essential nature of its services, and high level of public trust in health organisations. In FY23–24, healthcare and social assistance became the most reported non-government sector for cyber incidents.

There are green shoots for the healthcare transformation already underway. We see clients, including private hospital operators, insurers, and community providers, seeking partnerships to bridge silos, rethink staffing models, digitise healthcare, and find healthcare access solutions for remote and vulnerable members of our community. Within the next decade, Australia’s healthcare system can evolve and continue to be world class. Bold reforms, strong leadership, digital innovation, and a commitment to working together across the public and private divide will be required.

[1] Department of Health and Aged Care, “Nursing Supply and Demand Study 2023 – 2035” Final Report, 2024

[1] Global Health, The global health workforce stock and distribution in 2020 and 2030: a threat to equity and ‘universal’ health coverage, 2022