We are calling for clear rules to enforce patient choice and clinical autonomy for out-of-hospital care in the private sector.
In a media statement, AMA President Dr Danielle McMullen said there was a lack of clear rules on the provision of private out-of-hospital care , such as home rehab or hospital in the home.
"Due to a lack of policy and legislation, private health insurers currently control virtually every aspect of private out-of-hospital care - including what services are available to patients and what they can charge - through vertical integration," she said.
The AMA's proposal for a legislated framework is outlined in a new position statement on principles for private health insurance to cover out-of-hospital care.
Dr McMullen said: "We appreciate private health insurers' enthusiasm for out-of-hospital care, but without guardrails and a clear funding requirement in place, it could descend into a US-style system of managed care for these new services, which jeopardises the principles of patient choice and clinical autonomy.
"All we are asking for is the same patient-focused principles we have for in-hospital private care - your choice of doctor, your choice of hospital, regardless of your insurer."