AMA Transcript - Public Hospital Funding

SANDY ALOISI: Well it's doctors who will have to make any funding deal work, so what do they make of this speculation? Joining us now is the President of the Australian Medical Association, Professor Brian Owler. Doctor, good morning.

BRIAN OWLER: Good morning.

SANDY ALOISI: What's your reaction to the news this morning?

BRIAN OWLER: Well, we've heard some rumours, and at the moment that's all it seems to be: a rumour about what sort of deal might be offered, and the amount has varied over the weekend from $5 billion to $7 billion, presumably over four years. But this is a lot less than the money that was taken out as of the 2014 Budget, and it really is a Band-Aid solution. We want to get to a point where we have a long term commitment from the Commonwealth that sees adequate funding flowing to the States and Territories so that we can maintain the sort of health system that people deserve

SANDY ALOISI: So if the deal does involve between $5 billion and $7 billion as has been reported, how much more do we actually need to solve the funding crisis in our public hospitals?

BRIAN OWLER: Well, it was estimated that the changes over a four year period amount to about $20 billion, and people can argue whether that amount was all necessary or the right amount, but we know that the amount that's been budgeted for as of 2014 in the formula that was going to be used was going to be completely inadequate. So certainly, I think $5 billion is very much on the lower side, but I think what you'll find is that States and Territories are so desperate to see funding flow that allows them to continue to fund their hospitals that they'll take any money that's put on the table. But if I was a patient sitting at home, waiting for my elective surgery or who relied on the public hospital system for treatment, I would have my fingers crossed that a proper deal was reached at COAG on Friday.

SANDY ALOISI: Well this seems to have been driven by the Prime Minister; that's what we can glean from the reports this morning, Brian Owler. Has the AMA had any discussions with the Prime Minister or any input into any decision he might take?

BRIAN OWLER: The AMA met with the Prime Minister about 10 days ago. I certainly put to him the issue of public hospital funding. Certainly, it's been an issue since the 2014 budget but other issues like the co-payment have really taken attention away from the problem. But also, the real changes take effect from 2017, and we put to the Prime Minister the problem of increasing demand that we're seeing in our public hospital system. He heard from our emergency doctors about dramatic increases, particularly in the sicker patients that are coming to our emergency departments that the system is now unable to cope with. And of course the AMA put out its Public Hospital Report Card earlier in the year, which showed that we had falling performances right across the country in terms of elective surgery in emergency departments, and with the funding crisis looming, it was a recipe for disaster.

SANDY ALOISI: So what do you think could happen in the future to emergency services and elective surgery if hospitals don't get the sort of funding that you're talking about?

BRIAN OWLER: Well, the problem is that people will wait longer for their elective surgery. People will also languish for longer periods in emergency departments, and as we've said many times, this is not just an issue of convenience. These are people with very significant problems, and the complication rate and the problems that people are likely to experience are going to be much worse the longer they wait. But also, hospitals will have to make choices about what services they provide, and you will see things disappear, like public hospital outpatient departments, and a lot of that is not measured. It doesn't show up, and the end result is that we just have patients having much poorer outcomes.

SANDY ALOISI: So we're going to the polls sometime this year, Brian Owler. Do you think this is a genuine offer that will be put on the table for the States to discuss at the COAG meeting, or are you concerned that it might just be an issue to take health cuts off the table pre the Federal election?

BRIAN OWLER: Well, certainly the election is a significant motivator, it seems, for the deal that we've been looking for. I mean, COAG have been talking about this now for well over a year. We had the COAG Leaders' Retreat last year. So I think not only doctors and nurses will be waiting for the outcomes of this Friday's COAG meeting, but I think patients, particularly public hospital patients, will be very much hoping that this is a genuine offer and that an adequate solution can be reached.

SANDY ALOISI: I'll leave it there, Professor Brian Owler. Thanks for your input this morning.

BRIAN OWLER: Thanks Sandy.

SANDY ALOISI: That's the President of the Australian Medical Association, Professor Brian Owler.

29 March 2016

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