PC supports reforms to strengthen healthcare

TODAY's release of the Productivity Commission's (PC's) Interim Report Delivering quality care more efficiently, recognises the vital role private hospitals play in Australia's complementary hospital system.

Australia's public-private hospital blend has consistently ranked Number 1 in the world. But that standing has never been more precarious.

"We appreciate the PC's alignment with our calls for reform, which makes it more important than ever that the Albanese Government move decisively to secure a positive future for Australian healthcare providers and their patients," APHA CEO Brett Heffernan said.

"The report suggests that the Australian Government should empower Primary Health Networks with the flexibility to commission services aligned with local priorities, supported by dedicated funding streams.

"Governments are encouraged to shape the care economy by breaking down silos across sectors and making reforms that enhance inter-sector connectivity. This approach is essential for a resilient, sustainable healthcare system.

"APHA supports these reforms, emphasising the need for a healthcare model that leverages private hospital capacity to better address national challenges, such as elective surgery backlogs, chronic disease management, and hospital-in-the-home (HITH) services.

"Private hospitals already provide HITH services for public patients, but barriers prevent them from delivering these services to private patients. In particular, health insurers typically only fund HITH services that they themselves provide. An obstacle that must be addressed.

"We need a funding model that fosters public patients in private hospitals more consistently, supported by long-term commitments rather than ad hoc arrangements. This would reduce pressure on public hospitals, improve patient outcomes, and see spare capacity in private hospitals optimised.

"Aligning these reforms under the National Health Reform Agreement with private hospital capabilities will support more sustainable federal and state budgets, and ease government capital expenditure on public facilities and better promote innovation.

"However, key gaps remain. The report does not fully address how to overcome resistance to change, manage fragmented responsibilities, or navigate competing priorities across sectors and jurisdictions.

"Clarity on funding levels for prevention and collaborative programs is lacking, as are concrete solutions for data sharing barriers related to privacy and jurisdictional issues. Additionally, standardising evaluation methods across diverse programs and securing reforms beyond short-term political cycles remain unaddressed."

Next steps for the government:

• Provide clear timelines, milestones, and accountability mechanisms for implementing reforms.
• Announce specific funding allocations for prevention initiatives, collaborative commissioning, and regulatory alignment.
• Act swiftly to translate these recommendations into concrete action, ensuring Australia maintains its global healthcare leadership.

"The APHA stands ready to collaborate with all governments and stakeholders to build a more integrated, efficient, and patient-centred Australian healthcare system – one that optimises private hospital capacity for the benefit of all Australians," Mr Heffernan added.

"We have already begun those conversations with state governments over the last six months. Regardless of their political persuasion, the states universally understand and appreciate the contribution private hospitals make to healthcare in their backyards and the pressure that is alleviated in the public hospitals they run.

"We need the Australian Government to meet us halfway on these reforms."

-ENDS-

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