Consultation on Private Health Reform Options - January 2025

Overview

The private hospital sector is an important part of Australia’s health care system. The sector is diverse, with variations in size, location, types of services delivered, business models and agreements with private health insurers and other funders. 

In early 2024, high-level evidence and stakeholder feedback provided to the Australian Government raised financial viability concerns for the private hospital sector, which could potentially impact the health system and patient outcomes. In response to this, the Department conducted the Private Hospital Sector Financial Health Check (the Health Check) to establish a robust evidence base and gain insights into the current state of the private hospital market and the viability of the sector. 

The Health Check found that while parts of the sector have remained strong, there has been a reduction in profitability over time as costs have risen faster than revenue. The Health Check concluded that there is substantial work for private health insurers and private hospitals to do to ensure the sector’s long-term viability. Further information on the Health Check is available at: https://www.health.gov.au/resources/collections/private-hospital-sector-financial-health-check-resources  

The Government will work in partnership with the private health sector to develop innovative solutions which meet the needs of the sector and the Australian people. 

This consultation opportunity identifies a selection of potential short-term private health reform options on which the department is seeking stakeholder and community feedback.

Why your views matter

The options set out in the below Consultation Paper are not presented as endorsed government policy, rather the options are draft proposals developed for feedback. The department seeks feedback both in terms of whether the option should be proceeded with, and if so, how it should be implemented. 

The diverse perspectives, experiences and knowledge of stakeholders and interested members of the community are valued and respected and will help inform reform options developed for Government consideration. 

Responding to the consultation: 

1. The Consultation Paper provides details on a selection of potential reform options. Please take the time to read the Consultation Paper prior to providing your feedback. The Consultation Paper is available below under the ‘Related’ heading.  

2. We are seeking your response to the issues for stakeholder feedback, as outlined in the Consultation Paper.  

3. It is not necessary to provide a response to all issues for stakeholder feedback. 

4. Please provide your response by 31 January 2025. If you have any questions, please contact private.hospitals@health.gov.au  

Formal written submissions or additional material can be provided via email to private.hospitals@health.gov.au. by 31 January 2025. 

To support stakeholder engagement the department intends to publish responses. Respondents are asked to clearly identify specific elements of the response which are considered confidential and not for publication, as well as the reasons the specific elements are considered confidential. Confidential feedback may still be subject to access under freedom of information laws. The freedom of information process includes consultation with a respondent prior to a decision about the release of information.  

Full details on privacy and publishing information can be found on the ‘Important Information’ page. 

The Department is also seeking your feedback on Private Hospital Financial Data Collection Framework and your input would be greatly appreciated. Further information on this consultation is available here.

Thank you for your participation. Your input is greatly appreciated.