Catholic Health Australia (CHA) welcomes the federal government’s report on the Private Hospital Sector Financial Viability Health Check released today, which 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 Catholic Health Australia Director of Health Policy Dr Katharine Bassett.
“We thank the government for undertaking this important review and committing to swiftly identifying both short-term and long-term solutions.
“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
- 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,” said Dr Bassett.
CHA strongly advocated for the government’s private health check. Our consultations with the government throughout the process were led by Cabrini Health CEO Sue Williams and Calvary Healthcare CEO Martin Bowles AO PSM.
