Analysis

Why measuring public sector productivity is so slippery

When Productivity Commission researchers examined past assessments of the health system’s productivity earlier this year, they were pleasantly surprised.

Tom BurtonGovernment editor

Oct 3, 2024 – 4.41pm

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If traditional productivity measures are believed, Australia’s health system has been a long-time laggard.

Official Australian Bureau of Statistics productivity measures, comparing hospital workers’ hours with outputs (such as the time a patient spends in hospital), suggested that since the 2008 financial crisis, productivity had lifted just a piffling 0.1 per cent a year, up to 2019.

Tom Burton has held senior editorial and publishing roles with The Mandarin, The Sydney Morning Herald and as Canberra bureau chief for The Australian Financial Review. He has won three Walkley awards.