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HMS, HAG EQ-Bank 184

Explain the relationship between healthcare costs and prevention strategies in Australia's health system.   (4 marks)

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  • Healthcare costs and prevention strategies have an inverse relationship because prevention costs are much lower than treating diseases after they develop.
  • The reason for this is lifestyle factors cause most premature deaths, yet the majority of healthcare spending focuses on treatment rather than prevention.
  • This leads to significant cost savings when prevention programs like QUIT  and screening programs are implemented early.
  • Consequently, increased prevention funding results in lower long-term healthcare costs by avoiding expensive treatments for conditions like heart disease and stroke.
  • This demonstrates why government investment in prevention represents better value than treatment approaches for Australia’s health system.
  • As a result, prevention strategies enable better health outcomes while managing the trend of rising healthcare expenditure more sustainably.
Show Worked Solution
  • Healthcare costs and prevention strategies have an inverse relationship because prevention costs are much lower than treating diseases after they develop.
  • The reason for this is lifestyle factors cause most premature deaths, yet the majority of healthcare spending focuses on treatment rather than prevention.
  • This leads to significant cost savings when prevention programs like QUIT  and screening programs are implemented early.
  • Consequently, increased prevention funding results in lower long-term healthcare costs by avoiding expensive treatments for conditions like heart disease and stroke.
  • This demonstrates why government investment in prevention represents better value than treatment approaches for Australia’s health system.
  • As a result, prevention strategies enable better health outcomes while managing the trend of rising healthcare expenditure more sustainably.

Filed Under: Healthcare expenditure Tagged With: Band 4, smc-5482-10-Healthcare v prevention

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