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MEDIA reports that the Albanese Government will embark on yet a third year of consultation on the viability crisis impacting private hospitals, covering the same old ground restricted to piecemeal measures, fans the flames of Australia's healthcare demise.
"The very measures raised for future discussion are the very same measures that were on the table during the government's failed 2024 CEO Roundtable and its sequel the CEO Forum," APHA CEO Brett Heffernan said.
"It's taken the government a very long time to go nowhere. The two-year long CEO consultative processes canvassed all of the issues the government is now proposing to consult on for another year. This could be a script from 'Yes, Minister' except no one would believe it.
"To be clear, the measures up for discussion for a third time are ones the APHA supports, because it was APHA that first raised them back in 2023. But none of them, even collectively, address the funding shortfall that causes the viability crisis across private healthcare. A point we made in 2024*.
"Mooted changes to gold, silver, bronze and basic health insurance product tiers, maternity and mental health care, regional patient supports, expansion of hospital-in-the-home, and lifting the moratorium on oversea trained doctors, especially psychiatrists, are worthwhile and were all on the government-led agenda for both the CEO Roundtable and the CEO Forum.
"But none of these options address the viability issue. Even so, we won't be holding our breath.
"The government advised in December 2024 that the crises in mental health, maternity and regional hospital care were "priorities for short-term solutions". The government advised at the time this meant "within six months". That deadline lapsed a year ago without any action by government.
"Under the Albanese Government the private health insurance industry has been allowed free reign to bank the biggest profits in its history of over $2 billion a year, while also increase its management expenses to $3.4 billion a year. In fact, the premium increases the government has approved have largely lined insurer coffers.
"Meanwhile, insured patients are left with massive out-of-pockets due to inadequate insurance cover. Today, a record 71.5% of those with private hospital insurance (or over 9 million Australians) have exclusions built into their cover. It means despite paying higher premiums every year, when people get sick or injured their insurers aren't paying out what they should.
"Despite all the waffle, the government has already articulated the fix required. In March 2025, the Federal Health Minister publicly put health insurers on notice, citing their record profits, record management expenses and poor payouts, to demand they dramatically increase the benefits ratio to private hospitals within three months or be forced to do so.
"Legislating the return to 90% benefits ratio and establishing a Mandatory Code of Conduct for contracting between insurers and hospitals would go a long way to fixing the viability crisis that these gabfests were supposedly set up to address.
"We can only hope the government eventually finds the political courage to do what it said it would do."
-ENDS-
*APHA media release December 2024: Private Health CEO Forum set up to fail
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11/6/2026 Government's Private Health CEO Forum flops