McKeon Review proposes $2-3bn boost to health and medical research

The health and medical research community has reacted positively to a draft discussion paper released today by the Strategic Review of Health and Medical Research in Australia, better known as the McKeon Review.

The paper suggests that government expenditure on health and medical research should receive a substantial boost, upping it to around 3% of present $130 billion that is currently spent on health.

This would mean a boost of between $2-3 billion per annum for the sector by 2012-2013.

“The vision is for a high quality and efficient health system, where a defined proportion of the health budget is invested in research in the health system and where all research activity is well managed to deliver health impact,” the paper says. “Initially, the focus should be on spending current investment more effectively. Within the next ten years, an additional $2–3bn p.a. should be invested in research to deliver a better health system and an additional $0.4–0.6bn p.a. for other initiatives.”

The paper also proposes reforms to the National Health and Medical Research Council, particularly replacing the existing Development Grants with a Matching Development Block Grant Scheme, which would offer around $500k to each of the 20 consistently most successful NHMRC grant recipient organisations.

It also suggests the formation of a Translational Development Fund specifically for early-stage development, offering a total of around $250 million from the government matched with private sector funding, and structured to encourage investment from superannuation funds.

The recommendations were welcomed by the Australian Medical Research Institutes (AAMRI), which made a submission to the review encouraging greater funding for the sector along with structural reforms to promote commercialisation of medical discoveries.

“We particularly applaud the panel’s recognition of the role of research in delivering better health for all Australians, and its link to more effective management of our rapidly escalating healthcare costs,” said Professor Julie Campbell, President of AAMRI.

“The McKeon panel has delivered a strong business case for continued and increasing investment in Australian medical research, and the research community looks forward to renewed and ongoing bipartisan government support on this basis.”

The heads of three of Australia’s top research organisation also endorsed the recommendations in the discussion paper.

Dr Gareth Goodier, chief executive officer of Melbourne Health, Professor James McCluskey, deputy vice-chancellor (research) at The University of Melbourne, and Professor Doug Hilton, director of the Walter and Eliza Hall Institute of Medical Research, released a statement applauding the panel’s roadmap.

“By aligning research with health and committing an additional three per cent of the health spend to research, we can help to ensure that the fruits of health and medical research are available to the entire community,” said Professor Hilton.

“The review has also provided a road map for the sector that will improve the transparency of research funding, so that Australian tax payers can be reassured that their money is going to support the best research by the best minds in Australia, and will bring about health improvements in the community.”

Professor McCluskey also endorsed the review. “If adopted by the government, these recommendations will allow Australia to maintain a vibrant research community, encourage the top students to direct their talents to health and medical research, and stem the loss of valuable and talented scientists from the Australian research sector.”

The draft discussion paper is open for comment until 31 October, and the final recommendations will be issued later this year.

The discussion paper is available here.