Australians should get used to lower-quality health and aged-care services unless the system is modernised to rein in "unsustainable" cost growth, health employers warn.
With fax machines and paper filing still commonplace in Australia's archaic health system, the Business Council of Australia said the sector needed to embrace technology and lift productivity.
The lobby group representing employers from the health, aged care and insurance sectors says the nation's ageing population faces the possibility of worse care options and a funding gap.
Australian Unity chief executive Rohan Mead, who also chairs the business council's health and care services committee, said the status quo would put Australia's reputation as a global leader in health at risk and increase the tax burden on younger generations.
"Our health system is still based off a model from the era of Florence Nightingale," he said.
"We need to look at how technological changes and new models of care can provide better outcomes and make Australians even healthier."
Spending on health and aged care is projected to grow to more than 10 per cent of GDP by 2062/63, while the proportion of working Australians per retiree will fall from four to three, placing extra pressure on young wage earners.
The industry's reliance on old technology - 75 per cent of global fax traffic is for medical services - exacerbated the challenge.
A recent Productivity Commission report found AI could help automate up to 30 per cent of tasks undertaken by health workers, freeing them up to spend more valuable time with patients.
Investments in digital technology could save up to $5.4 billion annually on our health care system and about $355 million through fewer duplicated tests, the report found.
"Telehealth already saves Australians up to $895 million per year in reduced travel - these are improvements that make everyone better off," Mr Mead said.
AI tools have shown promise in boosting productivity in health care.
In a trial of 47 practitioners conducted in the UK, Australian software company Heidi Health found its AI tool - which auto-transcribes and summarises patient consultations - halved the time GPs spent on clinical documentation.
The business council blueprint recommended 139 actions, including education programs to boost medical literacy, increase price transparency to improve consumer choice, and reduce unnecessary paperwork that inhibits workforce mobility.
