December 13 2024
Private hospitals welcome immediate relief of health package
Not-for-profit healthcare providers – Cabrini Health, Calvary Health Care and St Vincent’s – have welcomed the Federal Government’s package of measures to support private hospitals.
The reforms presented for feedback at today’s Private Health CEO Forum include:
- improving patient access to hospital-in the-home programs by introducing a default benefit for accredited providers;
- moving maternity services to a lower cost private health insurance tier along with other measures to create greater patient choice;
- placing mental health in the risk equalisation pool to make it easier for insurers to offer mental health cover; and
- updating second tier default benefits to incentivise insurers to offer more contracts to hospitals and level the playing field in hospital-insurer negotiations, particularly to benefit regional and rural providers.
The private hospital providers – all members of the CEO Forum – also welcomed the Minister’s commitment to a further discussion on reducing red tape and necessary long-term reforms.
Immediate and real relief
St Vincent’s CEO, Chris Blake, said the reforms presented, if implemented, would provide “immediate and real relief”.
“It’s clear the private health sector – as with the broader health system – is going through a period of transition, particularly post-COVID. Yes, there are long-term reforms that are required, but private hospitals need practical support now to keep their heads above water,” said Chris.
“The package presented today would bring immediate and real relief to private hospitals. It could be the difference between some private hospitals staying open and going to the wall.
“And we know if that happens, the entire public health system will be put at greater risk.
“My colleagues and I appreciate the Minister’s attentiveness to our sector’s challenges and his desire to navigate a way through it.”
Thoughts from our National CEO
Calvary Health Care National CEO, Martin Bowles, said today’s announcement was proof the Private Health CEO Forum was achieving what it was set up to do, with the patient at the centre of decision-making.
“Private hospital providers and insurers must have positive relationships that focus on patients accessing affordable and safe care.
“The Private Health CEO forum enables open dialogue to identify solutions that will deliver improvements in the short term and lead to necessary long-term reform.”
Cabrini Health CEO, Sue Williams, said the changes, if implemented, would just be the beginning of the reform process.
“Today’s proposed reforms are very welcome, but perhaps even more so, is the government’s commitment to pursuing the long-term structural changes our sector needs – including funding reform, workforce reform, and changes in models of care to meet the evolving needs of the community.
“These reforms will be complex, but with the government’s commitment, we hope 2025 and beyond will be better years for both private patients and hospitals,” said Sue.