June 2024

Welcome to the latest edition of the 2024 On the Horizon newsletter from the Future Workforce Unit (FWU). On the Horizon provides a snapshot of the key trends and developments that have the potential to shape and impact our future workforce, workplace and ways of working.

On the Horizon is part of the Focus on the Future Workforce Initiative, which aims to support the health system to ensure a resilient and digitally enabled workforce that can adapt to the changes in the system caused by technology and other disruptions. By focusing on not just the now, but also the future, NSW Health can ensure that we meet the needs of the community now and into the future.

Please note that the opinions shared in On the Horizon are those of the respective authors, and may not reflect the views of FWU or NSW Health.

Aboriginal & Torres Strait Islander readers are advised that the articles may contain images of people who have passed away.

While no one can predict the future with absolute certainty, it’s clear that the world of work is changing, just as the world itself is. According to the Global Workforce Hopes and Fears Survey 2024 by PwC, “change is everywhere – and employees are feeling it”. The survey indicates that the global workforce finds itself caught between the present and future. While workers are open to change, current pressures may obscure their vision of future possibilities and their role in shaping them. For the best chance at success, it is crucial we articulate the rationale for change to our primary stakeholders – our workforce.

In this month's edition of On the Horizon, we're exploring a range of signals including the future of health spending, and the impact of technology on productivity and other critical outcomes based on new research from the Productivity Commission, and the evolving expectations of the workforce shaping healthcare delivery. I invite you, as you sift through these trends, to use the questions included to prompt further conversations with your peers to explore what these trends could mean for the future, today.

This month on the Future Health Podcast we’ve heard from experts about the future of workforce skills and expectations, the future of higher education, recruitment in “squads” rather than as individuals , and the evolving relationship between clinicians and patients. This season focuses on the theme of ‘What if …’, and so far, thousands of listeners have already tuned in and enjoyed the episodes. You can also listen at the platforms listed below.

If you're enjoying our insights or interested in exploring a certain topic, please connect with us; our team is always up for a conversation.

- Tamara Lee 

Director, Future Workforce

With the introduction of new technologies into healthcare aimed at creating efficiency, you may be thinking, are these accompanied by measurable gains in productivity and other critical outcomes?

In a recent report, the Productivity Commission has highlighted the transformative potential of digital technology in revolutionising Australia’s healthcare landscape. The paper, Leveraging Digital Technology in Healthcare, underscores how better integrating digital solutions could not only enhance patient care but also generate substantial cost savings, estimated at over $5 billion annually. Perhaps unsurprisingly, AI and automation emerge as pivotal game-changers, offering to automate up to 30% of current healthcare tasks. This automation not only streamlines workflows but also frees up healthcare professionals to focus more on patient care, thereby enhancing overall productivity and satisfaction.

Although Australia's healthcare system is ranked among the world's most efficient in terms of value for money, challenges persist, particularly in the fragmentation of patient data across disparate systems. The report notes that simplifying access to digital patient information could potentially save up to $5.4 billion annually by reducing hospital stays and eliminating duplicated tests; a benefit we may see realised with the rollout of the Single Digital Patient Record.

During consultations, leading healthtech partners like Alcidion, Annalise.ai and Telstra Health emphasised that while digital innovations have yielded significant benefits, strategic investments and regulatory frameworks are crucial for maximising their impact. In NSW Health we are supported by the AI Taskforce in developing an AI Framework and the NSW AI Assessment Framework to assist in designing, building and using AI-enabled products and solutions.

Do you and your teams possess the know-how to acquire information that supports the transition to a more digital world? How will the integration of AI and automation in healthcare impact job roles and skill requirements for healthcare professionals? As these digital health tools evolve, what opportunities exist for multidisciplinary collaboration among healthcare professionals to enhance patient outcomes?

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The landscape of healthcare delivery in Australia is undergoing a transformation driven by not only evolving consumer demands, but the shifting expectations within the workforce. Different generations now hold distinct and firm expectations regarding how and where work should be conducted, more so than ever before, reshaping traditional norms in healthcare delivery.

A recent survey conducted by Deloitte, 2024 Gen Z and Millennial Survey: Living and working with purpose in a transforming world, reports that values-driven generations like Gen Z and Millennials are increasingly choosing career paths mindful of environmental impact or which they believe will be less vulnerable to automation. Additionally, while work remains integral to their identities (ranking second only to friends and family) they prioritise maintaining a healthy work-life balance. This cohort’s preference for flexibility fuels demand for working remotely, part-time jobs, job-sharing options, and four-day work weeks for full-time employees.

Further, as the Australian health workforce ages, there is a growing recognition of the importance of adapting working conditions that support the physical wellbeing of older workers and contribute to maintaining career longevity and expertise within the workforce. As spoken about on a recent episode of the Future Health Podcast, this demographic shift may necessitate a move toward shorter shifts, job-sharing opportunities, and additionally, phased retirement plans.

How might these trends impact the future of healthcare delivery? Are there opportunities within your workplace or team to adapt to these shifts in the workplace? If so, what could be the first thing to address? In what other ways are the different generations triggering changes to working arrangements?

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As the Special Commission of Inquiry into Healthcare Funding of health services in NSW continues, the future of health spending is likely front of mind for many.

According to the recent Advances in measuring healthcare productivity research by the Productivity Commission, whilst Australia ranks among the world's leaders in healthcare outcomes relative to expenditure, costs continue to escalate with around one in every ten dollars being spent on healthcare. So how can we make our healthcare dollars go further?

The report highlights a 3% annual growth in quality-adjusted healthcare productivity between 2011-12 and 2017-18. Interestingly, according to the Productivity Commission, the primary drivers of this productivity growth have not been cost reductions but rather advancements in healthcare effectiveness, particularly through improved drugs and equipment rather than enhanced services by healthcare professionals. Further, while the healthcare industry has made strides in saving lives, the report underscores that improvements in quality of life have been limited. According to the Productivity Commission greater adoption of cost-effective preventive measures to address significant risk factors like obesity and alcohol consumption would enable our healthcare system to do more with less. Despite its cost-effectiveness, preventive healthcare currently accounts for only about 2% of Australia's annual health expenditure, significantly less than other OECD member countries.

Its 2040, and NSW Health has made significant gains in its productivity. What investments or divestments did NSW Health make to achieve this? Was it shifting to a preventive model of care, transdisciplinary teams and optimised scopes of practice that got us there?

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Future Health is a podcast from NSW Health about the future ways we will work, the work we will do and the impact of technology and scientific innovation on the future of healthcare. We have now released Series 5, where Dr Louise Messara is joined by a fantastic line-up of guests to discuss the future of work in healthcare, exploring topics around the theme of “What if…”.

Each episode will increase the listeners exposure to the research, analysis and insights, generated locally and from across the world, that will challenge us to consider where we are and where we could be going. The narrative-based, relatable content will resonate with the curious listener looking to learn from others and be inspired and open-minded in a fast-changing world.

Don't forget to subscribe to the Future Health podcast so you don't miss a thing:

While every effort is taken to validate the currency and accuracy of the content presented in the newsletter, NSW Health does not make any representations and  warranties with respect to the accuracy and completeness of the information contained herein. The content is represented as information only and readers should undertake their own research and enquires with respect to the specific details and information contained in this newsletter.

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