Health Minister sits on reform petition amid warnings of private hospitals falling prey to insurer takeover

Calls for the Federal Government to establish a private health commission or independent authority are languishing in the in-tray of Health Minister, Mark Butler MP.

The Australian Society of Ophthalmologists (ASO) launched an e-petition in late 2024 demanding the creation of a private health commission to tackle the crumbling private healthcare sector. ASO CEO Katrina Ronne revealed the petition garnered 268 signatures, prompting its referral to Minister Butler for a response 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 stated. “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.”

The ASO warns of a healthcare crisis with private hospitals like Healthscope falling prey to profit-driven takeovers. ASO President Dr Peter Sumich cautioned, “It is the beginning of an inevitable transition to US-style managed care, where the private health insurance industry stands to reap profits and overrule clinical and patient decision making against the recommendations of clinicians and the requests of patients.”

Catholic Health Australia (CHA) echoed similar concerns, fearing Healthscope’s potential acquisition by insurers could lead to restricted patient choices and compromised care quality.

Dr Katharine Bassett, Director of Health Policy at CHA, emphasised “The prospect of a health insurer gaining control over a major hospital network such as Healthscope is alarming. If a health insurer runs Healthscope hospitals, we risk a future where patients can only see the doctors and receive the treatments their insurer allows – not the care they actually need. This would be a dangerous shift toward a managed care model that puts profits ahead of patients.”

Highlighting grim examples from the US, Dr Sumich recounted cases where insurers intervened mid-surgery or denied patients life-saving treatments they deemed ‘not medically necessary’.

“In December, we saw this result in the assassination of the Chief Executive Officer of the largest health insurer in the US, based on the number of its members and physicians employed. This is not a future we want for Australians,” stated Dr Sumich.

Dr Bassett stressed the urgency of safeguarding patient rights amid healthcare reforms, cautioning against unchecked insurer influence.

“We must learn from international experiences where insurer-driven healthcare models have led to increased costs and reduced quality of care. The Australian healthcare system’s integrity relies on maintaining a clear separation between insurers and healthcare providers to ensure patient choice and access remains at the centre,” Dr Bassett urged.

“We need to balance the need for innovation with the right checks and balances to ensure reform moves in the best interests of patients.”

Ronne rallied support, urging ophthalmologists and broader members of the community to press political candidates on healthcare reform.

“Support the calls to action being made by your ASO, the AMA, and other health industry bodies by raising the issue with your local member or candidate running this federal election,” she said. “If we all do our part, we can ensure Canberra hears us and is forced to act before it is too late.”

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