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Katharine Bassett (CHA)

Catholic Health Australia has welcomed the federal Government’s report on the Private Hospital Sector Financial Viability Health Check, released on Friday, which it says confirms the sector is facing serious viability issues.

“This report confirms what we have been saying for a long time — that the private health sector is under severe and unprecedented funding pressure, especially in mental health and maternity care,” said CHA Director of Health Policy Katharine Bassett.

“We thank the Government for undertaking this important review and committing to swiftly identifying both short-term and long-term solutions,” Dr Bassett said.

“We look forward to working with all sector stakeholders, including insurers, medical groups, patients and independent experts, to ensure private hospitals continue to provide choice and high-quality care, and alleviate pressure on the public system.”     

CHA has proposed several short-term solutions to maintaining viability. These include: governments purchasing services from the private hospital sector to reduce public waiting lists; governments helping to fund wage growth in private hospitals; reducing the capital reserve requirements for private health insurers to increase the flow of funding into the system; reforms to the 2025 premium round to ensure hospital costs are reflected in premium increases; and government incentives to bring down out-of-pocket costs for maternity care.

“Now we know the extent and seriousness of the problem facing private healthcare, the whole sector needs to move quickly and cooperatively to implement solutions in the national interest. The establishment of the Private Health CEO Forum is a welcomed step to achieving this,” Dr Bassett said.

CHA strongly advocated for the Government’s private health check. Its consultations with the Government throughout the process were led by Cabrini Health CEO Sue Williams and Calvary Healthcare CEO Martin Bowles.

FULL STORY

Private hospital financial review confirms serious viability issues (Catholic Health Australia)

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