It's broke so fix it!

FROM today private hospitals across Australia will launch a poster campaign, with banners proclaiming 'It's Broke So Fix It!' and 'Private Hospitals Are Heavy Lifters', to be prominently displayed in high-traffic areas of private hospitals and day surgery centers.

"The posters are designed to raise awareness of the critical funding issues facing private hospitals and the knock-on effects to patient choice, access and quality care, while reminding people about the vital role private hospitals play in Australia's healthcare system. It seems to be something the Federal Government has forgotten," Australian Private Hospitals Association CEO Brett Heffernan said today.

"Previously both sides of politics celebrated Australia's complementary private and public hospital system, which for a long time has been the envy of the world. But over the last few years the Federal Government has turned its back on that ethos, leaving the 12.2 million Aussies with private hospital insurance, patient needs, private hospitals and their employees, and the broader healthcare system, in chaos.

"There are two primary objectives. Firstly, the posters address the funding crisis, which has seen the Australian Prudential Regulatory Authority report that health insurance companies have been shortchanging private hospitals by more than $3 billion over the three years of the Albanese Government's
watch. At the same time, the insurers have posted never-before-seen profits over $5 billion.

"This stark inequity and market failure is jeopardising the viability of private hospitals and, ultimately, the quality of care provided to patients due to the inability to invest in the state-of-the-art technology, advanced treatments, services and staffing patients expect.

"Since 2022 almost 20 private hospitals have closed their doors entirely, 70 services in other private hospitals have been permanently cancelled, consumer choice has eroded, investment in quality compromised and public hospital waiting lists are longer and deeper.

"To all intents and purposes the Federal Government has thrown its hands in the air, declaring it's not it's job to fix the broken private health system. We beg to differ. When the Federal Health Minister approves premium hikes every year, the government has skin in the game. The government has a duty to ensure those premiums reach the hospitals providing treatment and care, not simply lining insurer pockets.

"To all intents and purposes the Federal Government has thrown its hands in the air, declaring it's not it's job to fix the broken private health system. When the Federal Health Minister approves premium hikes every year, the government has direct skin in the game and a duty to ensure those premiums reach the hospitals, nurses and other staff providing treatment and care, not simply lining insurer pockets.

"In fact, according to 2024 market research, when Australian voters were informed that private health insurers were not properly funding private hospitals, 81% of voters agreed "the Federal Government needs to step in to force the insurers to properly fund the private health system".

"Secondly, the posters aim to raise awareness of the leading and irreplaceable contribution private hospitals make to the Australian healthcare system, across surgical, medical, mental health and rehabilitation
treatments and services.

"Private hospitals perform 70% of all planned surgery – 1.7 million operations – each year, including hip and knee replacements, malignant breast cancer procedures, hysterectomies and eye surgeries.

"They account for 1.6 million medical treatments each year, including the majority (54%) of chemotherapy, as well as 62% of mental health hospitalisations and 80% of in-hospital rehabilitation. Further demise of the sector will be devastating for patients, local jobs and healthcare delivery, while adding more pressure to struggling public hospitals.

"Each pair of posters will be displayed in high-traffic areas within our members' facilities across the country, including waiting rooms, reception areas, main corridors, and other locations where they can be easily seen by patients, visitors and staff.

"To facilitate engagement with this important issue, the posters include a call to action via a QR code. Scanning the code will enable people to quickly and easily send an email to Federal Health Minister Mark Butler, as well as their local Federal Member of Parliament.

"The process is automated to ensure ease of use, encouraging patients, visitors and staff can voice their concerns and advocate for a more equitable funding model.

"With 45% of the population holding private hospital insurance, they are an important cohort covering metropolitan, suburban, regional and rural communities. Some 5 million are admitted to private hospitals each year.

"We encourage hospital staff (over 55,000 employees in our member hospitals) to participate in this campaign. Given they are directly affected by the funding shortfalls, their involvement is crucial in demonstrating the widespread support for meaningful reform now.

"Collective action from those directly impacted will help to highlight to the Federal Government that it cannot simply ignore the funding crisis that has been allowed to blowout under its nose.

"Our preferred policy solution is, and has always been, to ensure patients continue to have access to world-class care without subjecting them or taxpayers to extra costs.

"The Federal Government can mandate 88 cents-in-the-dollar flows from insurers' premiums to cover hospital care costs. Or the government can re-direct funds from the rebates on health insurance to meet hospital costs in providing care. Importantly, these have zero impact on government coffers or patient pockets.

"It is a tragedy that while the Federal Government openly acknowledges that mental health, obstetrics and rural and regional services are in crisis, it has failed to act in any way to address these, or any other areas, of private hospital activity.

"Throughout this protracted saga, the Federal Government has done nothing to address the funding crisis.

It's Health Check in November was a joke. Despite recognising private hospitals are being short-changed by insurers, and the cascading consequences for patients, hospitals and their staff, and the national hospital
system, the government has failed to take a single initiative to fix it. It's nowhere near good enough."

Both posters - 'It's Broke So Fix It!' and 'Private Hospitals Are Heavy Lifters' – are attached.

-ENDS-

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