Innovation as the Remedy to Rising Costs
Australia’s public health system is under mounting and unsustainable financial pressure as highlighted in a recent report by the Grattan Institute. Which estimates that Australian governments maybe wasting up to $1.2 billion a year on avoidable costs, a large proportion of which stem from acute hospital admissions and inefficient allocation of staffing resources.
Financial pressures on the public health system are being compounded by Australia’s shifting demographics. As the population ages and chronic diseases continue to become more prevalent, demand for hospital services will continue to rise, placing even greater strain on already stretched budgets.
Chronic Wounds: A Silent Epidemic with a Personal Cost
Wounds Australia estimates that more than 450,000 Australians live with a chronic wound, with treatment costs exceeding AUD$6.6 billion annually. One European study found that 85% of treatment costs for chronic wounds are attributed to hospital admissions and nursing care.
The personal toll is equally severe. Patients often face out-of-pocket expenses of around $4,000 per year, alongside the physical and emotional burden of living with a hard-to-heal wound, often experiencing pain, reduced mobility, and social isolation.
Adopting Innovation and Improved Staff Efficiencies as a Path Forward
To address these challenges, the Grattan Institute recommends a smarter approach to hospital spending. Two key recommendations include unlocking underutilised skills within the health workforce and supporting innovation, ensuring that every hospital dollar delivers maximum value.
Staffing represents a significant share of hospital expenditure. Grattan highlights staffing inefficiencies as a key driver of higher cost and staff shortages. An example is the undertaking of routine procedures by highly trained health care professionals, such as surgeons, where the same task could be completed safely and effectively, and at a much lower cost, by other clinicians.
Advances in Chronic Wound Care
Adopting advances in wound care technology can support improved healing outcomes that keeps patients out of hospital, and deliver better staff utilisation. DEBRICHEM® is an innovation in wound debridement that supports improved healing rates, and unlike some other wound debridement methods, can be applied by any trained health care professional in almost all healthcare settings.
A UK study on venous leg ulcers found that integrating DEBRICHEM® into standard wound care protocols has the potential to reduce hospital admissions by more than 90%. The same study projected a 57% reduction in NHS wound management costs, while also increasing the probability of healing by 75% and improving patient quality of life.
DEBRICHEM® represents a real opportunity to deliver improved clinical outcomes and better spending efficiencies. By adopting this innovative technology into current wound care practices, could help to keep patients out of hospital, freeing up resources and reducing costs.
Bridging the Gap Between Innovation and Health Economics
The challenge now is to align the latest innovation in wound care into existing clinical protocols, delivering improved patient and health economic outcomes.
Achieving this will depend on collaboration across the healthcare ecosystem. Clinicians, policymakers, and industry must work together to ensure that every dollar spent contributes meaningfully to both individual wellbeing and system-wide efficiency.
In an era of rising demand and constrained budgets, smarter spending isn’t just good – it’s essential.
Talk to the team at Gaia Medical about how DEBRICHEM can support your wound care practice.
Always consult the IFU for indications and contraindications.
References:
Breadon, P & Baldwin, E. (Nov, 2025). Smarter Spending – Getting better care for every hospital dollar. https://grattan.edu.au/report/smarter-spending-getting-better-care-for-every-hospital-dollar/ Grattan Institute
Wounds Australia. (2024). 5 Point Plan to solve Australia’s Chronic Wound Epidemic.
Lindholm C, Searle R. Wound management for the 21st century: combining effectiveness and efficiency. Int Wound J. 2016 Jul;13 Suppl 2(Suppl 2):5-15.
Guest JF, Deanesi V, and Segalla (2022). Cost-effectiveness of Debrichem in managing hard-to-heal venous leg ulcers in the UK. J Wound Care. Medpharm Publications.
DEBRICHEM. https://gaiamedical.com.au/debrichem/