News
President’s Blog: Strong private hospital sector vital for our State
Friday September 20, 2024
Our strong private hospital sector is a major part of what has historically made our medical system perform well. State dominance of health services produces the sort of mess that is currently the once-proud National Health Service in the United Kingdom, which has become a blight on the prestige of that nation. At the other end of the spectrum, free market dominance reduces universal access to care, as seen in the United States.
A healthy mix is key.
Private healthcare is warmly embraced by Western Australian patients. We have the highest participation rate in private health insurance in the country, with 54% of Western Australians holding private hospital cover compared with the national average of 45%. We have the highest per-capita number of private hospital beds in Australia, and 61% of elective surgery is performed in the private sector.
But the private hospital sector is facing significant challenges. Operators have been expressing concerns about long-term viability for some time. In the Eastern states there have recently been some high-profile spats and failed negotiations between private hospitals and the private health insurers, whose funding of private care is central to the viability of the hospitals.
It’s clear that the public system has no capacity to take on overflow work from the private sector, should the private sector be unable to offer care. But that is precisely the nightmare scenario that State and Federal government policymakers need to urgently contemplate, and prevent by taking steps that support and protect private healthcare. This must include working collaboratively with both the insurers and the hospitals, with meaningful input from clinicians and patients. If we want to have a functional health system in WA 10-15 years from now, finger-pointing and blame-shifting needs to end.
It was in this spirit that the Australian Medical Association (WA) recently convened a summit of leaders from the private hospital and insurance sectors, the State Government, the Department of Health, along with clinical leaders to explore the common ground and shared interests that exist between all parties.
Whilst we did not expect a half-day meeting to solve all the problems of healthcare, it was nonetheless an important and collegiate meeting that had as a firm outcome agreement by all parties that a strong private hospital system that delivers comprehensive care across the full range of specialties is a worthy goal. We will release a more detailed report on the summit outcomes and future steps soon.
