Prognosis negative: Healthcare economics and the Kennett Government

Often viewed as the nightmare of portfolios, Health has been the Achilles heel of the Kennett government. The coalition's handling of the portfolio has taken the shine off its economic achievements and would suggest that this is the one area where it has had a reverse midas touch - little in this portfolio has been done with political finesse.
Upon its election, the coalition set about reforming almost all sectors of government, and health was to be no exception. The government continued the previous Labor administration's program of decentralising health services by introducing a number of radical reform initiatives. The previous departments of Health and Community Welfare Services were merged to form Health and Community Services, with Marie Tehan the senior minister. With the reduction in departments came a reduction in senior staff, and a number of professional bureaucrats were head-hunted to implement the coalition's reform program.