Need for certainty in private health system

AMA (NSW) is renewing its call for a new independent authority to oversee private hospitals after today’s announcement that more than six million Australians will now face hefty out of pocket costs after Healthscope cancelled agreements with multiple health funds.

Today’s Sydney Morning Herald reports the funds include Bupa and 22 smaller not for profit organisations, which are part of the Australian Health Service Alliance.

It comes after Healthscope’s decision last month to charge members of these funds additional gap fees of up to $100 per admission.

“Patients are becoming collateral damage in the ongoing war between the government and private hospital operators, and an urgent independent authority needs to be installed,” AMA (NSW) president Dr Kathryn Austin said.

“It is unacceptable that we now have six million Australians facing higher health costs at a time when the cost of living is already causing so many people to go without basic necessities.

AMA (NSW) recognises the significant financial pressures on the private hospital system and the costs to providing high quality care.

Dr Austin said a strong private hospital system is critical to the suitability of our health system, particularly given our public hospital system is so desperately underfunded.

“This also undermines the confidence Australians have in private health insurance arrangements, and will now be creating enormous stress and anxiety for patients already booked in to have elective procedures.”

Last month, the AMA urged Healthscope, Bupa and the Australian Health Service Alliance to immediately return to the negotiating table to resolve their damaging funding disputes.

“This issue needs urgent resolution. We must have an independent authority to oversee private health installed as soon as practicable and we must stop using patients as pawns,” Dr Austin said.

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