Australia’s healthcare system is under immense pressure. An ageing population, rising chronic disease rates, and escalating costs are straining resources. Between 2011 and 2022, state spending on public hospitals grew by 4.1% annually, yet demand continues to outgrow capacity (KPMG, 2024). Amid these pressures, virtual hospitals - models that deliver hospital-level acute care at home - are gaining attention as a cost-effective solution. However, the current focus is too narrow.
If virtual care can safely replicate acute care at home, why limit it there? By redirecting the same innovation toward preventing hospital admissions in the first place, particularly for chronic conditions, the potential impact becomes even greater. The question isn’t just how to care for patients after they become critically ill, but how to stop them from getting there in the first place.
The recent KPMG report on virtual hospitals highlights significant savings - up to $1 billion in annual operating costs and billions more in avoided infrastructure investment by 2030. These outcomes stem from treating acute cases at home. Yet, chronic diseases like diabetes, COPD, and heart failure (already some of the leading drivers of healthcare costs and hospitalisations) offer an even larger opportunity. Despite these conditions being mentioned in the KPMG report from a hospital perspective, the shift to earlier interventions and preventative care could also dramatically reduce costs while improving quality of life.
Commenting on the KPMG report on LinkedIn, Robert Read, CEO of Amplar Health shared:
“Public hospitals are grappling with ambulance ramping, bed block and an overstretched workforce. These challenges will only compound with the increasing chronic disease burden and ageing population. We need to embrace emerging models of care, supported by technology, so we can continue to have access to some of the world’s best healthcare in Australia.”
For example, a project in Tasmania has incorporated remote patient monitoring into its preventative care for chronic conditions. By tracking patient metrics such as blood pressure and oxygen levels, clinicians can identify deterioration early and intervene before hospitalisation is required. This proactive approach aims to reduce treatment complexity, save resources, and improve patient outcomes.
The UK’s NHS has also seen similar success. Clinitouch’s remote patient monitoring platform helped achieve a 67.5% reduction in unplanned COPD hospital admissions, saving over £2,300 per patient annually (Ghosh et al, 2018). Early results from a project in South Africa also saw cost of hospital referrals decrease from $175K to just $18K after implementing Clinitouch. With chronic disease rates climbing in Australia, a national adoption of preventative virtual care could deliver similar, if not greater, results.
Expanding virtual care into prevention isn’t just about cost savings; it also addresses broader systemic challenges.
Commenting on the KPMG report on LinkedIn, Craig Simmonds, CEO & Founder, Propell Pty Ltd also added:
“This report from KPMG and Medibank further validates what so many studies show on monitoring patients at home. It’s not more funding, but a shift of existing funding from bricks and mortar hospitals to at home funding. Many more people can be looked after for the same dollars. That’s a better outcome for people and governments.”
The broader adoption of preventative virtual care would mark a significant shift from reactive to proactive healthcare. The KPMG report estimates up to 1.2 million bed days could be substituted annually through virtual models. Imagine the effect if even just a small amount of those bed days were avoided altogether through early intervention.
Grant Ricker, Head of International Partnerships, Clinitouch, shares his views, commenting:
“This shift requires robust digital infrastructure, clinician buy-in, and thoughtful integration into care pathways. The Salveo project in Tasmania demonstrates how remote monitoring can complement existing services without adding complexity. With the right partnerships and technology, scaling such initiatives nationally is achievable.”
Virtual care has proven its value in acute settings, but its true potential lies in prevention. By leveraging technology to monitor and manage chronic conditions proactively, Australia could alleviate pressure on its healthcare system, reduce costs, and improve patient outcomes.
The opportunity is clear - shift focus upstream. Preventative virtual care isn’t just a cost-saving tool, it’s a smarter, more sustainable way to care for an ageing, increasingly complex population.
As we rethink healthcare for the future, the question isn’t whether virtual care can be expanded, but how quickly we can embrace its potential.
The team are always happy to chat with organisations who recognise this opportunity. Get in touch with the team today.
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Australia’s healthcare system is under immense pressure. An ageing population, rising chronic disease rates, and escalating costs are straining resources. Between 2011 and 2022, state spending on public hospitals grew by 4.1% annually, yet demand continues to outgrow capacity (KPMG, 2024). Amid these pressures, virtual hospitals - models that deliver hospital-level acute care at home - are gaining attention as a cost-effective solution. However, the current focus is too narrow.
If virtual care can safely replicate acute care at home, why limit it there? By redirecting the same innovation toward preventing hospital admissions in the first place, particularly for chronic conditions, the potential impact becomes even greater. The question isn’t just how to care for patients after they become critically ill, but how to stop them from getting there in the first place.
The recent KPMG report on virtual hospitals highlights significant savings - up to $1 billion in annual operating costs and billions more in avoided infrastructure investment by 2030. These outcomes stem from treating acute cases at home. Yet, chronic diseases like diabetes, COPD, and heart failure (already some of the leading drivers of healthcare costs and hospitalisations) offer an even larger opportunity. Despite these conditions being mentioned in the KPMG report from a hospital perspective, the shift to earlier interventions and preventative care could also dramatically reduce costs while improving quality of life.
Commenting on the KPMG report on LinkedIn, Robert Read, CEO of Amplar Health shared:
“Public hospitals are grappling with ambulance ramping, bed block and an overstretched workforce. These challenges will only compound with the increasing chronic disease burden and ageing population. We need to embrace emerging models of care, supported by technology, so we can continue to have access to some of the world’s best healthcare in Australia.”
For example, a project in Tasmania has incorporated remote patient monitoring into its preventative care for chronic conditions. By tracking patient metrics such as blood pressure and oxygen levels, clinicians can identify deterioration early and intervene before hospitalisation is required. This proactive approach aims to reduce treatment complexity, save resources, and improve patient outcomes.
The UK’s NHS has also seen similar success. Clinitouch’s remote patient monitoring platform helped achieve a 67.5% reduction in unplanned COPD hospital admissions, saving over £2,300 per patient annually (Ghosh et al, 2018). Early results from a project in South Africa also saw cost of hospital referrals decrease from $175K to just $18K after implementing Clinitouch. With chronic disease rates climbing in Australia, a national adoption of preventative virtual care could deliver similar, if not greater, results.
Expanding virtual care into prevention isn’t just about cost savings; it also addresses broader systemic challenges.
Commenting on the KPMG report on LinkedIn, Craig Simmonds, CEO & Founder, Propell Pty Ltd also added:
“This report from KPMG and Medibank further validates what so many studies show on monitoring patients at home. It’s not more funding, but a shift of existing funding from bricks and mortar hospitals to at home funding. Many more people can be looked after for the same dollars. That’s a better outcome for people and governments.”
The broader adoption of preventative virtual care would mark a significant shift from reactive to proactive healthcare. The KPMG report estimates up to 1.2 million bed days could be substituted annually through virtual models. Imagine the effect if even just a small amount of those bed days were avoided altogether through early intervention.
Grant Ricker, Head of International Partnerships, Clinitouch, shares his views, commenting:
“This shift requires robust digital infrastructure, clinician buy-in, and thoughtful integration into care pathways. The Salveo project in Tasmania demonstrates how remote monitoring can complement existing services without adding complexity. With the right partnerships and technology, scaling such initiatives nationally is achievable.”
Virtual care has proven its value in acute settings, but its true potential lies in prevention. By leveraging technology to monitor and manage chronic conditions proactively, Australia could alleviate pressure on its healthcare system, reduce costs, and improve patient outcomes.
The opportunity is clear - shift focus upstream. Preventative virtual care isn’t just a cost-saving tool, it’s a smarter, more sustainable way to care for an ageing, increasingly complex population.
As we rethink healthcare for the future, the question isn’t whether virtual care can be expanded, but how quickly we can embrace its potential.
The team are always happy to chat with organisations who recognise this opportunity. Get in touch with the team today.
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