Private hospitals are an important part of the Australian health system, providing patients with choice and taking pressure off our public hospitals to serve the health needs of our communities, especially in the regions.
Over two-thirds of elective surgery take place in private hospitals.
After reports about the sustainability of some private hospitals the Government directed the Department of Health to undertake a Financial Health Check of the sector.
The Financial Health Check provides a robust analysis of the challenges faced by the private hospital sector.
While parts of the sector have remained strong, there has been a reduction in profitability over time as costs have risen faster than revenue. This shows that there is substantial work for private health insurers and private hospitals to do to ensure the sector's long-term viability.
Hospitals and insurers must work together in the interests of patients and in the national interest to support the entire health system.
Following the Health Check, the Government is establishing the Private Health CEO Forum.
The Forum will bring together leaders from private hospitals, private health insurers, medical groups and independent experts to develop short term options for government consideration and to commence work on long-term reforms to strengthen the sector's financial viability.
The Government thanks the private hospital sector for its collaborative engagement during the course of the Health Check, including the willingness of many hospitals to voluntarily provide sensitive commercial data to inform the analysis.
To protect the commercial information of the private hospitals, a health check summary is being released publicly. Visit https://www.health.gov.au/resources/collections/private-hospital-sector-financial-health-check-resources to read the summary of the health check.
Quotes attributable to Minister Butler:
"Private hospitals provide much needed medical care to communities across the country and are fundamentally important to the broad operation of the entire health care system.
"The Albanese Government is grateful to all those who participated in the health check as we all work towards a strong and sustainable future for private hospitals in Australia.
"There will be no silver bullet from Canberra or funding solution from taxpayers to deal with what are essentially private pressures in this system.
"The Government will work in partnership the private health sector to develop innovative solutions which meet the needs of the sector and the Australian people."
