The federal government is considering introducing a fixed-price funding model for the country’s 650 private hospitals under a raft of proposals evaluated to fix the sector, and has told key players it is willing to let more facilities
One option discussed on Friday was the adoption of a “national efficient price” to set a baseline price for services, a model used in the public system. The government is under pressure to help a system regarded as being inefficient, but also a critical part of the healthcare system, a major employer and a key driver of economic activity. Regional areas are particularly sensitive to the government.
The government has also made it clear to industry players that private hospitals in regional areas are essential and could be given special consideration. “Brookfield is managing more than $1 trillion in assets. They can afford to bail themselves out of some bad business decisions in Australia.” “What’s really needed is wide-scale policy reform that understands current and future market and provision cost pressures. Although Butler has missed the main private health reform game, providers and insurers can’t just run to mummy, whether the government or the ACCC, to resolve their differences,” he said.Medibank, Australia’s largest health insurer, says only 64 per cent of private hospital beds are being utilised.