Australia's healthcare system requires urgent digital transformation to address mounting cost pressures and workforce shortages, with technology investments potentially saving $A5.4 billion annually, according to a new Business Council of Australia report.

The 168-page blueprint calls for mandatory interoperability standards across health, aged care and disability sectors by 2028, warning that fragmented digital systems are hampering productivity and patient outcomes.

It has also suggested the introduction of a Digital Health and Care Interoperability Incentive Fund within the next 3 years to support the digitisation of paper-based records and interoperability across the health and care system.

"In 2025, it would astound many Australians that the majority of hospitals are still paper-based and that up to 75 per cent of global fax traffic comes from medical services," said Rohan Mead, chair of the BCA's Health and Care Services Committee.

The report identifies critical gaps in Australia's health technology infrastructure, noting that 90 per cent of OECD countries have electronic health portals, but only 42 per cent allow public access to all their data.

The BCA proposes renaming the Australian Digital Health Agency to the Australian Digital Health and Care Agency, expanding its remit to oversee digital transformation across aged care and disability services.

Key recommendations include establishing a public register of health software that integrates with My Health Record, creating a Digital Health and Care Interoperability Fund, and mandating the National Healthcare Interoperability Plan 2023-2028 across all sectors.

The report estimates that electronic medical records across public hospitals could save $A355 million annually by reducing duplicated pathology and imaging tests.

Workforce and AI Integration

Artificial intelligence could automate up to 30 per cent of healthcare tasks, potentially freeing clinicians for patient care, the report states. However, it warns that regulatory frameworks must keep pace with technological advancement.

"AI has the potential to free up 30 per cent of a clinician's time, allowing them to spend more time with Australians," Mead said.

The report projects a shortage of 79,000 nurses by 2035, with digital solutions and scope-of-practice reforms identified as partial solutions to workforce pressures.

Current fragmentation sees separate portals for My Health Record, aged care, NDIS and carer services, creating data silos and administrative inefficiencies.

The blueprint calls for a coordinated national approach, proposing establishment of an Australian Health and Care Commission to consolidate existing regulatory bodies and harmonise standards.

Government health and care expenditure increased from $A70 billion to $A184 billion between 2011-12 and 2023-24, with the sector projected to exceed 10 per cent of GDP by mid-century.