Digital health revolution finally comes to Australian hospitals—but will it arrive in time?

While you've probably embraced online banking and video calls with the grandkids, the harsh reality is that many Australian hospitals are still operating like it's 1950. But that's about to change in ways that could dramatically improve your healthcare experience.

A powerful new report from the Business Council of Australia has thrown down the gauntlet, declaring that our health system is 'still based off a model from the era of Florence Nightingale' and urgently needs to catch up with the 21st century.

The timing couldn't be more critical, with an ageing population, a shrinking workforce and mounting costs creating unprecedented pressure on the system.

How far behind are we really?

The statistics are frankly embarrassing. In Australia, outside of digital imaging-based AI products, nearly all hospitals remain clinical AI-free zones, according to research published in the Medical Journal of Australia.

Meanwhile, in the United States, the implementation of hospital-based clinical AI, such as sepsis or deterioration prediction, has accelerated over the past five years.

Even more shocking? Up to 75 per cent of global fax traffic comes from medical services. Yes, you read that correctly—in 2025, hospitals are still relying on technology that was cutting-edge when your parents were young.

The game-changing potential of digital transformation

The numbers speak volumes about what we're missing out on. According to the Business Council of Australia, artificial intelligence could allow clinicians to dedicate up to 30 per cent of their time to seeing patients and reduce burnout. Imagine shorter waiting times and doctors who aren't rushed off their feet.

But it's the cost savings that really catch attention: digitised health records and a connected system would save up to $5.4bn in hospital costs, $255m of which would be through fewer duplicated tests. How many times have you had to repeat the same blood test or X-ray because your records weren't available to a new doctor?

Progress is happening—but slowly

It's not all doom and gloom. The Albanese Government is investing almost $30 million in research into new ways to use artificial intelligence (AI) to improve access to health services, with 10 grants awarded from the Medical Research Future Fund (MRFF) to harness the power of AI in the healthcare system.

The My Health Record system, while imperfect, has made significant strides. Most Australians now have a My Health Record, and under the Health Legislation Amendment (Modernising My Health Record—Sharing by Default) Act 2025, healthcare providers, starting with pathology and diagnostic imaging services, will be required by law to upload specific test results and reports to your My Health Record.

This means your blood test results and scan reports will automatically appear in your digital health record, making them instantly available to any doctor treating you.

Real benefits you'll actually notice

Think about your last hospital visit. Did you spend ages filling out the same forms you completed six months ago? Were doctors asking you to repeat your medical history for the third time that day? EMRs and other clinical systems are likely to provide the platform for implementing AI technologies—with uses in areas such as imaging, diagnosis, and treatment, as well as tasks such as reconciliation of reports or analysis of clinical data.

Here's what this could mean in practice: when you arrive at emergency, your complete medical history, current medications, and recent test results would be instantly available. AI systems could flag potential drug interactions or alert doctors to concerning patterns in your health data.

The urgent timeline ahead

The pressure is mounting from all directions. Spending on health and aged care is set to exceed 10 per cent of Australia's GDP by 2062-63, while the number of working-age Australians per retiree is set to drop from four to three in the next 40 years.

Meanwhile, there's growing political pressure over healthcare delays. More than 121,000 people were waiting to be assessed for Home Care Packages, with an additional 87,000 Australians who have been assessed still waiting for support. These delays highlight why technological solutions aren't just nice-to-have—they're essential for managing growing demand.

The challenges holding us back

Some would argue this is a good thing, both prudent and sensibly cautious given the wide ranging ethical, privacy and safety concerns, notes research from the Medical Journal of Australia. Fair enough—nobody wants to rush into technology that could put patients at risk.

'There is more health and medical data out there than ever before, so data privacy and security are a growing challenge,' Dr Hansen said in the recent CSIRO report. These concerns are valid, especially for older Australians who may be more cautious about digital systems handling their sensitive health information.

But the alternative—sticking with fax machines and paper records—isn't exactly risk-free either.

What you can do now

While we wait for hospitals to catch up, you can take some control:

• Set up your My Health Record if you haven't already—it's free and puts your health information at your fingertips
  
• Ask your GP about electronic prescriptions, which can be sent directly to your phone
  
• Keep your My Health Record updated with any changes to medications or conditions
  
• Don't be afraid to ask doctors if they can access your digital records—many can, even if they don't routinely check

The digital health revolution is finally coming to Australia, but it's arriving later than it should have. Australia simply cannot afford to miss out on this opportunity, as experts have warned. The question isn't whether these changes will happen—it's whether they'll happen fast enough to meet the growing needs of our ageing population.