Identifying sectors for reform Study report

URL: https://www.pc.gov.au/inquiries-and-research/human-services/identifying-reform/…
for Productivity Commission  
  • Greater competition, contestability and informed user choice could improve outcomes in many, but not all, human services.
  • The Commission has prioritised six areas where outcomes could be improved both for people who use human services, and the community as a whole. Reform could offer the greatest improvements in outcomes for people who use:
    • social housing
    • public hospitals
    • end-of-life care services
    • public dental services
    • services in remote Indigenous communities
    • government-commissioned family and community services.
  • Well-designed reform, underpinned by strong government stewardship, could improve the quality of services, increase access to services, and help people have a greater say over the services they use and who provides them.
  • Introducing greater competition, contestability and informed user choice can improve the effectiveness of human services.
    • Informed user choice puts users at the heart of service delivery and recognises that, in general, the service user is best placed to make decisions about the services that meet their needs and preferences.
    • Competition between service providers can drive innovation and create incentives for providers to be more responsive to the needs and preferences of users. Creating contestable arrangements amongst providers can achieve many of the benefits of effective competition.
    • For some services, and in some settings, direct government provision of services will be the best way to improve the wellbeing of individuals and families. The introduction of greater competition, contestability and choice does not preclude government provision of services.
  • Access to high-quality human services, such as health and housing, underpins economic and social participation.
    • The enhanced equity and social cohesion this delivers improves community welfare.
  • Government stewardship — the range of functions governments undertake that help to ensure service provision is effective at meeting its objectives — is critical.
    • Stewardship includes ensuring human services meet standards of quality, suitability and accessibility, giving people the support they need to make choices, ensuring that appropriate consumer safeguards are in place, and encouraging and adopting ongoing improvements to service provision.
  • High-quality data are central to improving the effectiveness of human services.
    • User-oriented information allows people to make choices about the services they want and for providers to tailor their service offering to better meet users' needs.
    • Transparent use of data drives improvements in the performance of the system for the provision of human services and increases accountability to those who fund the services.
via John Quiggin