Australia's health and aged-care systems face significant risks of declining service quality unless they undergo modernization, particularly through adopting digital technologies to control rising costs and inefficiencies.

Health employers warn that failure to modernize could lead to lower quality healthcare and aged-care services, emphasizing the urgent need for technological upgrades.

The government has promised to release 83,000 additional Home Care Packages starting from November 1, but ongoing delays have increased political pressure to expedite support for older Australians.

AI tools, like those tested in the UK, have demonstrated the potential to halve the time general practitioners spend on clinical documentation by automating transcription and summarization of patient consultations, boosting efficiency.

The Business Council of Australia has proposed a blueprint with 139 actions aimed at reforming the healthcare system, including improving medical literacy, increasing price transparency, and reducing unnecessary paperwork to enhance workforce mobility and care quality.

The Business Council emphasizes the importance of embracing digital technology and new care models to improve health outcomes and increase productivity across the sector.

Telehealth services currently save Australians approximately $895 million annually by reducing travel costs, showcasing the tangible benefits of digital health solutions.

The Australian healthcare system still relies heavily on outdated technology like fax machines, which hampers efficiency, though telehealth has already contributed to cost savings and improved access to care.

An aging population and a shrinking workforce are projected to push health and aged-care spending beyond 10% of GDP by 2062/63, with the ratio of working Australians per retiree dropping from four to three, increasing financial pressures.

The sector faces challenges from an aging population, a declining workforce, and outdated care models rooted in historical practices, according to the Business Council of Australia.

Delays in administering Home Care Packages have resulted in a backlog, with over 121,000 people waiting for assessment and additional support, highlighting systemic issues in aged-care delivery.

AI has the potential to automate up to 30% of health worker tasks, saving the system up to $5.4 billion annually and reducing duplicated tests, thereby allowing clinicians to spend more time with patients and reducing burnout.