The AMA says planned closures of private maternity services in Hobart and Darwin are like canaries in the coalmine, warning that the long-term viability of the private health system is threatened.
This week, AMA President Dr Danielle McMullen told the media that Healthscope's announcement that it would close maternity wards in hospitals in Darwin and Hobart later this year had cast a shadow over the entire private health system.
"We are deeply concerned by the planned closures of maternity services in Hobart and Darwin," she said.
"The importance of maternity services simply cannot be overstated and those who purchase private health insurance deserve to do so with the confidence they will get the care they need.
"Maternity services are like the canary in the coalmine and these latest closures announced by Healthscope should further emphasise the urgent need for reform to the private health sector."
AMA Tasmania President Dr Michael Lumsden-Steel said the planned closure in Hobart would leave only one remaining private maternity unit for the entire state of Tasmania with the public hospital system providing the north and northwest obstetric services.
AMA Northern Territory President Dr John Zorbas said the closure of the only private maternity service in Darwin meant women would have to travel thousands of kilometres away from home to use their private health cover, which would further strain the already stretched public hospital.
The AMA has released a submission to the Private Health CEO Forum , supporting changes proposed by the forum.
Dr McMullen said the changes proposed by the forum were a welcome first step, however, bolder reforms were needed.
"The private health system needs reform beyond changes to how insurers pay for services or how contracts are negotiated. It needs reforms that improve the entire system and delivers benefits for all involved - clinicians, consumers and governments, too," she said.
"Our submission calls for a thorough review of the way the private health insurance products tier categorisation system works, given the increasingly unaffordable price of gold-tier products.
"We also propose a range of policy options to improve access to private maternity cover, including reviewing the tier level that includes maternity cover options for patients to access maternity cover without a 12-month wait if it is not included in their cover level."
The AMA is calling for a Private Health System Authority to help ensure the sector is appropriately regulated.
