Australia has a mixed health system - the public sector funded by both state and federal governments, and the private sector paid for by individuals either through private health cover or directly. Together, these costs are now equivalent to nine per cent of GDP and rising.

The past century has seen great advances in health and medical science with many illnesses now a thing of the past and longevity continually on the increase. The rate of change in this period has been dramatic and shows no sign of abating – thus, current health costs have the potential to rise substantially with the advent of new drugs, treatments and technology.

These advances raise important ethical and economic issues. Will only those that have money be able to access expensive treatments or, under "equality of outcome", will governments pay the cost for anybody who needs those treatments? And how much is the country prepared to pay?

There are many groups that hold strong views about health services and the system that delivers them, but many have special interests that may restrict their ability to contribute to a wider agenda. To date, there has been no single group able to take a representative view of the many and varied elements that comprise public and private sector health in Australia. It is within this context the Australian Centre for Health Research Limited has been established.