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Direct funding of private hospitals worth consideration - AMA

AMA President, Dr Bill Glasson, said today that the increasing shortage of health professionals and the increasing demands on existing health services are at the centre of a crisis in the supply of health services in Australia, in both the public and private system.

Dr Glasson made the comments in response to the release of a discussion paper by University of Canberra academic, Ian McAuley, released earlier this week.

McAuley says the private health insurance rebate has not provided the expected relief for an overburdened public hospital system, and that because of leakages to administration, ancillaries and gap payments, support for private insurance has been a high cost way to support private hospitals.

McAuley suggests direct funding of private hospitals, to bring their funding more into line with public hospital funding would result in a fairer and more efficient allocation of scarce health resources.

"It's a concept we already understand, in relation to medical fees, and one worth exploring," Dr Glasson said.

"McAuley's comments reiterate what we already know about an overburdened health system.

"There are just not enough doctors and nurses to meet the increasing demand for health care in this country.

"The AMA has always supported a balanced mix of public and private service providers and funders," Dr Glasson said.

CONTACT:         Judith Tokley             (02) 6270 5471 / (0408) 824 306

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