Private patient cash haul damaging Tasmanians' access to care

Friday, 1 November 2019

Private patient cash haul damaging Tasmanians' access to care
Tasmania's health service annual report shows a public health system failing patients, while raking in the
cash from the privately insured in the state.

Australian Private Hospitals Association (APHA) Acting CEO Lucy Cheetham says the report illustrates the
impact the cash grab for privately insured patients is having on access to public hospital care.

"We know from Australian Prudential Regulation Authority data that there has been significant growth in
privately insured patients treated in public hospitals in Tasmania. In 2018-2019 this number was 21,456 –
meaning one in seven public hospital beds were given up for privately insured patients.

Data from the Annual Report on Health in Tasmania shows the public system in Tasmania is in a dismal
state as a result, she said.

"Patients who are reliant on the public system are being let down by the push to make money out of the
privately insured. The Tasmanian health service is missing its own key performance indicators by a
significant margin. Patients who, according to Tasmanian health, should be getting surgery within no more
than 30 days are waiting up to 686 days for their surgery.

"All the while, the income generated from privately insured patients is on the rise, $35,590,000 for 20182019 up from $34,288,000 in 2017-2018. The take from private health insurance jumped 10 percent in
2018-2019," she said.

Other details around elective surgery show admission within the recommended time was achieved only 58
percent of the time, with a KPI of not less than 90 percent. Wait times for every category of surgery were
high leaving patients waiting twice, seven times, even up to 22 times the target maximum number of days.

Ms Cheetham said another troubling detail in the report were concerns raised about non-compliance with
taxation and superannuation legislation to do with the Private Patient Scheme. This should lead to the
Federal Auditor-General reviewing all states.

"We saw the same thing in Victoria in June where their Auditor-General found the Victorian Department of
Health and Human Services incentivised public hospitals to coerce patients into private treatment. That
report found the practice – particularly if private patients were treated ahead of the public – a potential
breach of the National Health Reform Agreement, which could result in the Federal Government asking for
its money back.

"Federal Health Minister Greg Hunt has called states out on this practice and they must account for their
actions as hospital funding negotiations enter their final phase. The fact that by their own admission and
reporting public hospital systems are failing public patients to such a significant degree should be impetus
alone to end this practice," Ms Cheetham said.

-ENDSMedia contact: Frith Rayner, Director Communications and Marketing, 0413 971 999

Level 3 /11 National Circ, Barton ACT 2600. PO Box 4502, Kingston ACT 2604. [T] 02 6273 9000 [F] 02 6273 7000
[E] [W] www.apha.org.au [FB] ValuingPrivateHospitals [Twitter] @priv8hospitals
ABN 82 008 623 809

The Australian Private Hospitals Association (APHA) is the peak industry body representing the private hospital and day surgery
sector. The private hospital sector treats 4.5 million patients a year, including treatment of a third of chemotherapy, 60 percent of all
surgery, 74 percent of all elective musculoskeletal surgery and 80 percent of rehabilitation.

Level 3 /11 National Circ, Barton ACT 2600. PO Box 4502, Kingston ACT 2604. [T] 02 6273 9000 [F] 02 6273 7000
[E] [W] www.apha.org.au [FB] ValuingPrivateHospitals [Twitter] @priv8hospitals
ABN 82 008 623 809

Next Media Centre:
15/11/2019 No excuse for Victorian elective surgery blow out

Previous Media Centre:
31/10/2019 Small change could make huge difference to mental health care access