‘We need relief now; we can’t wait for another talkfest,’ asserts CEO of Day Hospitals Australia

The private healthcare sector is grappling with escalating tensions between private hospitals and health insurers, with no resolution in sight. The situation has reached a “critical point,” jeopardising the sector’s viability. While Health Ministers convened in Hobart last week to discuss health system reforms, the private healthcare crisis was notably absent from the agenda, despite the “enormous” strain it places on public hospitals.

Speaking candidly on the Health Industry Hub podcast, Jane Griffiths, CEO of Day Hospitals Australia, stated, “The funding model is not fit for purpose…it’s come to a crisis point”.

She highlighted the growing disparity in remuneration, noting that the price gap between overnight hospitals and day hospitals for equivalent treatments is widening. Private health insurers not only pay overnight hospitals more for the same day procedures but have also increased payments to overnight hospitals at a faster rate than to day hospitals.

“The challenge for day hospitals is that they are expected to provide the same care under the same standards with the same staff for much lower remuneration,” Griffiths stated.

“We need relief now. We can’t wait for the CEO Forum to come up with suggestions. It’s just another talkfest…There are actions that the [Health Minister] could take right now.”

Griffiths pointed out that two-thirds of admissions to overnight private hospitals are for same-day procedures, many of which could be transitioned to day hospitals. However, barriers continue to hinder the full potential of the sector, which comprises 357 private stand-alone facilities nationwide.

“We’ve reached the fork in the road. Unless they are incentives to move day procedures from overnight hospitals into the more cost effective day hospital sector, we’re at risk of that sector collapsing,” she warned.

With a federal election on the horizon, Griffiths presented key recommendations for immediate action by the Health Minister to stabilise the sector in the short term. She also delved deeper into the longer term reforms that are essential to drive significant transformation within the private hospital sector, ensuring it meets the evolving needs of consumers while maintaining financial sustainability.

“The time for discussion is over,” Griffiths concluded. “The time for action is absolutely premium.”

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