Calls for Independent Authority grow louder as private health sector teeters on the edge of collapse

The Australian Medical Association (AMA) is amplifying calls for the establishment of an independent Private Health System Authority, joining stakeholders such as the Australian Private Hospitals Association (APHA) and the Australian Society of Ophthalmologists (ASO) in urging for targeted oversight of urgent reforms.

AMA President Dr Danielle McMullen reinforced the association’s budget submission, which includes a proposal where insurers must allocate at least 90% of premiums to pay-outs.

“We’ve seen many devastating closures of private hospital services, and we are glad to see Health Minister Mark Butler this week call for a better funding deal for private hospitals to address these challenges, which we support,” Dr McMullen remarked.

She continued, “The AMA is also calling for a Private Health System Authority – an independent body dedicated to overseeing the sustainability and innovation of the sector while giving consumers the confidence in private health insurance products.”

Meanwhile, the ASO has sparked its own campaign to address the deterioration of private healthcare, launching an e-petition in late 2024 that garnered 268 signatures. ASO CEO Katrina Ronne revealed that the petition has now been referred to Minister Butler, with a response expected within 90 days.

“With an election looming, we are eagerly awaiting his response, which we hope outlines sound reasoning for or against the establishment of a private health commission or independent authority,” Ronne said.

“We are asking Minister Butler to step up and show leadership and fortitude to find solutions for all Australians, as opposed to sitting on the sidelines and simply watching on or deferring to the government’s closed Private Health CEO Forum.”

While the AMA has expressed cautious optimism regarding the government’s reform efforts through the Private Health CEO Forum, it remains steadfast in advocating for an authority that would fill critical gaps in the current regulatory landscape. Such a body would act as an impartial “umpire,” ensuring that the private health sector’s insurance products and services prioritise consumers.

“Our health system relies on the private system, where the overwhelming majority of our elective surgery is done. Our public hospitals don’t have the spare capacity to cope with a deluge of urgent patients if the private system falters,” Dr McMullen cautioned.

In reimagining healthcare across the entire patient journey, Health Industry Hub^TM is the only one-stop-hub uniting the diversity of the Pharma, MedTech, Diagnostics & Biotech sectors to inspire meaningful change.

The Health Industry Hub^TM content is copyright protected. Access is available under individual user licenses. Please click here to subscribe and visit T&Cs here.