Govt Forum falls flat while health crisis deepens

Federal Health Minister Mark Butler... zero action on crisis for 18 months.

DESPITE mental health designated a priority for "short-term" action by the Federal Government-led Private Health CEO Forum, almost a year on and not a single initiative has emerged to address the crisis.

Set up in December 2024, the CEO Forum is the sequel to the Albanese Government's earlier CEO Roundtable established in May 2024. It ran alongside the Private Hospital Sector Financial Health Check, which suffered a three-month delay in its release and still offered not a single solution.

"After an 18-month process it's reasonable to ask, is this how a responsible government responds to a crisis on its watch?" APHA CEO Brett Heffernan queried. "The lack of urgency to a recognised and deepening emergency, is baffling.

"In setting the Forum agenda, the government identified Mental Health, Maternity, and Regional Health as the priorities for short-term solutions. The Health Department advised that meant a six-month timeframe. This deadline lapsed in June. It's been almost a year and still there is nothing to show on any front.

"Meanwhile, private hospitals are closing and more closures loom. Brisbane's acute psychiatric Toowong Private Hospital closed in June, barring a last-minute deal with the Tasmanian Government The Hobart Clinic will close this month and we know of another eight psychiatric hospitals close to collapse. That's on top of some 10 mental health facilities that closed in just the last two years.

"The Federal Government's process has failed to address the reason for the Forum's creation. The viability of private hospitals. The piecemeal issues canvassed by the government do not address the cause of the crises.

"Now the Forum is discussing the option of a so-called National Efficient Price (NEP). Yet, this nebulous concept poses more questions than answers... who will set the price; is it a fixed price or a price range; how will it account for regionality, or specialities like psychiatric and rehabilitation care; will it cover capital expenditure or healthcare innovation and, if so, how; who will administer it, what bearing will it have on unconscionable health insurance contracting?... just to list a few.

"And there are more delays. Detail on the NEP was promised in August, then delayed until September. It's mid-October and we're still waiting. The Health Department advises that it will take three years to implement. So you can bet on it taking closer to five years.

"In any event, it's not a fix for the funding mess. Health insurers are banking record profits from the ever-growing premiums families pay every year, while private hospitals are forced into liquidation.

"The accumulated funding shortfall in hospital payments since 2022 is a staggering $4.15 billion, while the profit-take by the insurance companies is over $8.2 billion. That doesn't include the now $3.4 billion the insurers reap each year in 'management fees'.

"It's not hard to make record profits when you don't pay your bills in full.

"Not surprisingly, the health insurance industry lauds the CEO Forum. With the process protracted and the government seemingly content to do nothing, the insurers can continue to gouge customers, screw down private hospitals and bank massive profits. Meanwhile, it's patients who suffer."

-ENDS-

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