The healthcare institutions are experiencing rising funding crisis, which is created by inadequate budgetary allocations. An effective healthcare-financing framework is one that generates sufficient funds for medical services in a manner that guarantees patients utilization of required services, and is safeguarded from possible impoverishment linked to huge hospital bills. Currently, healthcare systems are experiencing financial challenges, which decrease their chances to provide quality services and accessibility. Moreover, it is difficult to obtain resources to finance quality healthcare improvements and initiates. Public health facilities are publicly funded through the Medicare program, which is founded on the tenets of ‘universal accesses. In so doing, it helps the patients to enjoy subsidized treatment from medical practitioners and acquire free care in public facilities. However, sustainability of this type of financing system is a source of concern. Empirical evidence has indicated that internationally best practices suggest that health care structure should concentrate on proper management of finances and prevention of illnesses. However, due to emerging challenges, financing of medical services is unable to meet challenges such as workforce shortages, rising out-of-pocket patients’ costs, and chronic care.
According to scholarly evidence public funded healthcare systems are prone to financial challenges hence do not guarantee the efficiency, sustainability and the quality of healthcare. There are debates to privatize the healthcare system, which will function based on market forces. For instance, a mixture of both private and public sectors characterize Australia healthcare system where nearly 30 per cent of expenditure is obtained from the former. The rising costs of disease control mechanism, an ageing population and technology may compel the Australian authority to pursue market-based strategies aiming to solve the widespread budgetary pressures.
Similarly, scholars admitted that healthcare systems experience financial challenges emanating from escalating technological costs. Although technological processes have enhanced the patients’ lives based on the management and diagnostics of severe disease in the current century, they impose large financial burden to the healthcare facilities. Medical reports pointed out that recurrent rise in the technological cost of the healthcare facilities will lead to large monetary constraints in improving and maintaining better health care. In most cases, technology in many non-health sectors depreciates over a given period, but technology in the health care continues to raise the liability government budgets. The advances in therapeutic technology are one of the contributors of rising health costs. For instance, biological therapeutics, radiological scanners, prostheses, and marginally invasive surgical processes o