The Australian health care system.

Medicare is Australia's universal system of health insurance, which is based on the principles of equity. It provides free accommodation and treatment in public hospitals and entitlement to medical services. Laboratories receive reimbursement from Medicare if they are accredited. Hospital funding may be directly funded, whereas in some States the funding is through structures such as Health Areas. There are increasing moves to determine the hospital share of funding based on the number and types of hospital cases. To lower the cost of Medicare, the Federal Government is considering reforms including those which will allow private health insurers to negotiate with doctors and hospitals. Some of the major issues facing the health care system are: (1) how best to deliver care to Aboriginal Australians, (2) overspending, particularly in high-technology medicine, and (3) provision of health care for the small but significant number of Australians who do not live in major metropolitan centers.