Five former chairs of VicHealth have called on Premier Jacinta Allan, Treasurer Jaclyn Symes, and Health Minister Mary-Anne Thomas to reconsider a controversial plan to abolish the state’s esteemed health promotion agency. This proposal, described as “bone-headed” by public health experts, aims to integrate VicHealth into the Department of Health, a move critics argue will undermine preventative health initiatives and ultimately lead to increased healthcare costs.
The recommendation to dissolve VicHealth was made in a recent review of the Victorian Public Service, conducted by former bureaucrat Helen Silver, and has already received cabinet approval. In their letter, the former chairs—including Nicola Roxon, Mark Birrell, Fiona Cormack, Jane Fenton, and Nick Green—warn that this “misguided” decision could hinder efforts to prevent chronic diseases and exacerbate the state’s escalating healthcare expenses.
Concerns Over Preventative Health Funding
The former VicHealth chairs emphasized the significant financial benefits of preventative health measures, noting that every dollar invested in this area saves approximately $14.30 in future healthcare costs. “We believe the decision is misguided and will fail to deliver the hoped-for savings,” they stated in their letter. “Abolishing VicHealth will severely reduce the effectiveness of important and innovative public health work in this state.”
Opponents of the plan, including current board members and health advocates, have urged the government to maintain VicHealth’s independence and budget. Dr. Tim Read, a Greens board member, stressed the importance of VicHealth’s role in countering the influence of powerful corporations that promote unhealthy products. “If we’re worried about the budget, it’s time to think about prevention,” he stated.
The Victorian Health Promotion Foundation, known as VicHealth, was established in 1987 and has played a crucial role in public health initiatives, particularly in combating chronic diseases related to poor diet and inactivity. Its independent governance and guaranteed budget have been key to its success.
Government’s Justification and Opposition Response
A government spokesperson defended the proposed changes, arguing that they would reduce redundancy between VicHealth and the Department of Health. “VicHealth was established almost 40 years ago, and significant changes have occurred in the public health landscape since that time,” the spokesperson noted, asserting that the government remains committed to investing in preventative health.
Jess Wilson, the opposition leader, demanded assurances that this decision would not diminish preventative health initiatives. The transition could impact VicHealth’s annual budget of $45 million, which represents just 0.13 percent of the government’s projected health expenditure of $33.6 billion for the current financial year.
Public health experts have expressed concern that the integration of VicHealth into the Department of Health could lead to a decline in preventative measures as resources are diverted to address more immediate healthcare demands, such as hospital budgets and waiting times for elective surgeries. Glen Ramos, president of the Australian Health Promotion Association, warned: “If this organisation is absorbed into the Department of Health, there is no guarantee what it does will continue.”
In a further criticism, Terry Slevin, chief executive of the Public Health Association of Australia, remarked that the public health capacity of the Department of Health has already been compromised. He expressed fears that the funds currently allocated to VicHealth would not be preserved if the agency is absorbed into the department.
The Silver Review, consisting of a comprehensive 162-page report, allocated limited attention to its recommendation concerning VicHealth, stating that its functions could be adequately managed within the Department of Health without compromising quality. This has raised concerns about the future effectiveness of public health initiatives in Victoria.
As the government moves forward with plans to consolidate various public entities, including VicHealth, the implications for public health in the state remain uncertain. The proposed changes will require amendments to existing legislation, including the state’s Tobacco Act, signaling a significant transformation in how health promotion is structured in Victoria.
On November 29, 2023, VicHealth appointed Ian Hamm as its new chair, following the conclusion of Nicola Roxon‘s five-year term. Hamm’s role may be jeopardized if the agency is dissolved, further complicating the future of public health governance in the state.
Amidst the ongoing debate, the government insists that the restructuring aims to enhance efficiency and effectiveness in delivering health programs, a narrative that remains contested by public health advocates and experts.
