Why Is the Australian Government Interested in Complementary Medicine? A Case Study of Economic Rationalism

Abstract

To address rising health costs, the Australian government has relied on several strategies: (1) covert rationing that entails limiting public health funds for particular patients or services; (2) the allocation of patients awaiting surgery to a priority level; (3) increased copayments for physician visits necessitated by practices such as physicians refusing to bulk bill; and (4) the establishment of an independent auditor for the private health insurance industry. However, the health economics literature rarely mentions that the growing support in various ways of the Australian government for complementary medicine may constitute another strategy for curtailing rising health costs. The government's main support for complementary medicine has come in the form of training programs in chiropractic, osteopathy, Chinese medicine, and naturopathy in public tertiary institutions and partnerships between private complementary colleges and public universities. Compared with biomedical education with its need for hospitals and sophisticated technology, complementary training programs are inexpensive. Furthermore, complementary services are generally not covered by Medicare but must be paid for either out of pocket or by a private health plan.