The Australian Medical Association has welcomed several promising proposals on private health sector reform but warns meaningful reform will require action on underlying funding pressures threatening the viability of private hospitals, particularly in mental health and maternity care.
In its response to the first in a series of consultation papers from the Department of Health, Disability and Ageing on private health reform, the AMA said private healthcare provided the important option of choice in care for patients, but it was never intended to compensate for an underfunded public hospital system that cannot keep up with growing demand.
AMA President Dr Danielle McMullen said too many Australians are turning to private care because public specialist outpatient services are unavailable or public hospital waiting lists are too long.
“At the same time, private hospitals are facing rising costs, service closures and growing financial pressure, leaving many patients, particularly in regional areas, without timely access to private care close to home,” she said.
Dr McMullen said the private maternity sector was in crisis and mental health services were also under enormous pressure and without improvements to funding arrangements, access to these services would continue to deteriorate.
“The AMA is particularly disappointed the consultation paper does not include our costed proposal to improve rebates for psychiatrists providing inpatient care, despite strong stakeholder support and its potential to improve access almost immediately.”
On access to maternity care, the AMA called for greater flexibility for women who unexpectedly become pregnant to access appropriate private health insurance cover, and better Medicare support for clinicians involved in maternity care.
Dr McMullen welcomed proposals to expand hospital in the home services, reduce Type C exemption certificate requirements and improve support for regional private hospitals.
“These are sensible reforms that could improve access to care, reduce red tape and strengthen regional health services,” Dr McMullen said. “But unless governments and insurers address the financial sustainability of the private health system, more patients will be pushed back into an already overstretched public health system.”
Read our submission on the Private Health Sector Reform Consultation Paper No. 1.
