Private hospitals back public-private solution for IV fluids

PRIVATE hospitals support the Albanese Government's injection of $20 million to expand Australia's onshore manufacturing capability for intravenous (IV) fluids to strengthen essential domestic supplies critical to
hospital care, surgical operations, and a wide range of medical treatments.

Baxter Healthcare has committed to matching the government's investment dollar-for-dollar, which is a testament to public-private collaboration in safeguarding the nation's health system. The expanded production capacity at Baxter Healthcare's Western Sydney facility will result in an additional 20 million units of IV fluids annually, ultimately ensuring the production of 80 million units per year from 2027.

"This sovereign manufacturing capacity will stand Australia in good stead in the event of global health shocks, like the COVID-19 pandemic," APHA CEO Brett Heffernan said. "During the pandemic, private hospitals across Australia stepped up to help public hospitals by taking patients amidst the influx of COVID cases.

"The global shortage of IV fluids, however, was a critical issue for all hospitals as global supply dried up.

Baxter Healthcare rose to the occasion, ensuring that supply met the urgent needs of hospitals across the country. However, the shortage highlighted the need for greater local manufacturing and security in our supply chains.

"We commend the Federal Government for its constructive approach. This investment will go a long way to securing a stable and sovereign supply of essential medical supplies, which are fundamental to the delivery of high-quality care in private hospitals across Australia."

The global shortage of IV fluids, which began in early 2023, has posed significant challenges for healthcare providers. The Therapeutic Goods Administration's projections that supply issues may continue through 2025 underscored the need for action. The $40 million investment in local manufacturing will reduce reliance on overseas production and help prevent future shortfalls in supply.

In addition to this investment, the APHA acknowledges the government's broader efforts to strengthen Australia's healthcare infrastructure. This includes a clinical review of the use of IV fluids and the establishment of a panel of suppliers to further buttress the supply chain and reduce the likelihood of future disruptions.

"This investment is not only a win for private hospitals but also for the broader Australian healthcare system and the patients our members serve," Mr Heffernan added. "By ensuring a steady and secure supply of IV fluids, we can continue providing the best possible care to Australians regardless of any shocks that lay ahead."

-ENDS-

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