Unlocking healthcare innovation: The power of rethinking funding priorities

In our latest Future Led panel discussion, we invited six experts to challenge the status quo of healthcare funding. Traditional funding models prioritising efficiency and activity are no longer fit for purpose in a rapidly changing healthcare landscape. The panel explored how we might pivot towards human-centred metrics that focus on patient wellbeing and meaningful outcomes.

Our speakers included:

  • Benjamin Hall, Director of Health Outcomes, Healthcare Purchasing and System Performance at Queensland Health
  • Sharon Mickan, Adjunct Professor at Bond University
  • Mia McLanders, Manager of Research at Metro North Health
  • Greta Liell-Cock, Director of Health Funding Innovation at Queensland Health
  • Suzzie Harvey, Director of Business Development at Australian Healthcare & Hospitals Association (AHHA)
  • Leo Yin (moderator), COO and Partner at Liquid.

 

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L-R: Suzzie Harvey, Mia McLanders, Benjamin Hall, Sharon Mickan, Greta Liell-Cock, Leo Yin. 

 

Rethinking the metrics

For decades, healthcare funding has been tied to activity-based funding (ABF), where service volume dictates financial support. While this model has its merits, it struggles to address the complexities of rural, remote, and community healthcare systems. The result? Communities left underserved and innovation stifled.

Benjamin Hall, Director of Health Outcomes at Queensland Health, underscored the limitations of this approach:

"Behind every one of those occasions of service is a patient ... It’s a life that gets impacted on a daily basis."

This comment set the tone for the panel, reinforcing the need to move beyond metrics that reduce patients to numbers. Suzzie Harvey, Director of Business Development at the Australian Healthcare & Hospitals Association (AHHA), provided an additional lens:

"In rural and remote Australia, we see healthcare, aged care, and NDIS services struggling to align. Policies need to talk to each other to improve outcomes for these regions."

Suzzie highlighted the compounding challenges faced by rural areas, including workforce shortages, geographic barriers, and fragmented funding models. The panel discussed how current metrics often overlook these complexities, creating significant disparities in care access and outcomes.

 

The opportunity to innovate

To address these gaps, the panellists advocated for value-based funding models. These models reward healthcare providers for improving outcomes rather than delivering more services. They also create space for innovation, allowing care providers to experiment with new ways of delivering services.

Greta Liell-Cock, Director of Health Funding Innovation at Queensland Health, emphasised the importance of flexibility:

"It’s about recognising when to use one funding model over another and ensuring we design frameworks that drive innovation and deliver meaningful care for patients."

Greta’s perspective on using adaptable frameworks inspired discussion about how different funding approaches could be applied in varying contexts, from acute care in hospitals to preventive services in community settings. Sharon Mickan, Adjunct Professor of Healthcare Innovations at Bond University, expanded on this, highlighting the need for experimentation:

"We need systems that enable us to relax the risk when trying new ideas ... The best idea won’t emerge first; it needs testing."

Sharon advocated for governance systems that support trial-and-error, particularly in underexplored areas such as integrating digital tools into patient care. The panel agreed that embracing experimentation is essential for driving innovation in both care delivery and funding strategies.

 

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Innovation and the power of data

A recurring theme throughout the discussion was the role of data and technology in reshaping healthcare. By leveraging usability testing and real-time data analysis, healthcare providers can make smarter, patient-focused decisions.

Mia McLanders, Manager of Research at Metro North Health, shared insights from the Queensland Innovation Living Lab:

"We’re testing how medical devices and software impact clinician performance and patient safety. Our focus is on keeping humans in the loop amid advancements like AI and automation."

Mia’s example showcased the importance of including clinicians in the innovation process to ensure tools are not only effective but also practical in real-world settings. The discussion then turned to the wealth of data available in healthcare systems. Benjamin highlighted its potential:

"We’re sitting on a wealth of data that’s underutilised. By turning it into meaningful intelligence, we can identify gaps in service and improve care delivery."

The panel explored how data can reveal disparities, inform targeted interventions, and guide funding decisions. However, they also emphasised the need for tools to humanise this data, ensuring it translates into actionable insights that benefit patients.

 

Listening to patients

The panel also delved into patient-reported outcome measures (PROMs) and patient-reported experience measures (PREMs). These tools capture the voices of patients, offering insights into their experiences that traditional metrics often overlook.

Sharon advocated for better digital tools to collect and act on patient feedback:

"Understanding patient outcomes and experiences is key to driving meaningful innovation. Digital platforms can help us capture this data more effectively."

Sharon explained how digital tools could streamline the collection of patient feedback, making it easier to integrate into care decisions. However, Greta highlighted the challenge of scaling these insights:

"How do we measure outcomes at the patient level and then scale them to inform system-wide decisions? That’s a major hurdle we need to overcome."

The panel discussed how to balance subjective patient experiences with objective system-wide metrics. By combining both, healthcare systems could achieve a more comprehensive understanding of what works – and what doesn’t.

 

Flexibility and co-design

Rigid, one-size-fits-all funding models were identified as a significant barrier to innovation. Panellists called for adaptable frameworks that reflect the unique needs of communities, with Suzzie emphasising the importance of co-design:

"Engaging the people at the coalface early in the design stage is critical. They understand the problems and can guide the solutions."

This approach, the panel noted, is especially critical in rural and remote areas, where local knowledge is invaluable. Greta Liell-Cock added that flexibility to cater to different patient cohorts is key:

"In order to achieve a financial sustainable health system that delivers consistently high-quality care, we need to focus on value and incentivising care models that secure optimal outcomes for specific patient cohorts. A consistent funding model doesn’t work for all settings. We need to complement traditional models with innovative approaches that give providers more freedom to meet community needs." 

The discussion explored how tailored funding frameworks could support place-based healthcare solutions, ensuring resources are allocated where they are needed most.

 

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The role of policy

The panellists recognised that policy and governance play a pivotal role in enabling systemic change. Proactive engagement with policymakers is essential for creating funding models that prioritise human impact.

Mia shared her work in advocating for legislative changes:

"We’re working on ensuring clinician input is required when approving medical devices. This kind of policy shift is essential for systemic improvement."

Suzzie added:

"Let’s not assume the problem; let’s understand it. Engaging policymakers in the co-design process early is critical."

The panel emphasised the need for collaboration between healthcare providers, policymakers, and stakeholders to ensure policies align with real-world needs. They also highlighted the importance of advocacy in driving change, particularly in areas like digital health and innovation funding.

 

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A vision for the future

The Future Led panel painted a compelling picture of what healthcare funding could look like if aligned with human-centred metrics. By embracing value-based care, leveraging data and technology, and fostering collaboration across sectors, the healthcare system can evolve to better meet the diverse needs of patients and providers.

As Benjamin summarised:

"We want metrics that inform intelligent care ... It’s about creating a system that values outcomes and aligns funding with meaningful improvements in patient lives."

The panel closed with a shared commitment to prioritising people over processes, paving the way for a more equitable, innovative, and human-centred healthcare future.

 

 


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