Without local private hospitals,
public hospitals would be overwhelmed and unable to meet the needs of our growing and ageing population.

The public hospital system relies on private hospitals

2 out of every 5 hospital admissions in Australia are to a private hospital

1 out of every 2 same day chemotherapy treatments are performed in the private sector (eg. cancer treatment)

2 out of EVERY 3 elective surgeries in Australia are performed in a private hospital

2 out of 3 muscular skeletal procedures (e.g knee and hip replacements) are performed in private hospitals

1 out of every 3 specialist mental health beds are in local private hospitals

4 out of every 5 rehabilitation visits (e.g stroke recovery) happen in private hospitals

Since the COVID-19 pandemic, private hospitals have been facing challenges caused by a number of factors including:

► Elective surgery restrictions during the COVID pandemic

► Challenges attracting and retaining qualified doctors and nurses

► Cost inflation - including salaries and wages, supplies, energy costs, building and equipment

► An unbalanced negotiating position with the private health insurance funds.

Almost all private hospital operators are losing money due to rising costs.

HEALTHSCOPE

-$662m

MATER

-$106m

SJOG

-$116m

EPWORTH

-$59m

CALVARY

-$377m

ST VINCENT’S

-$29m

The cost of hospital care has been rising faster than the cost of inflation.

Since the COVID-19 Pandemic, 70 private hospitals have closed. And more are at risk with the department of health warning that 16 private hospitals have declared plans to close since 2023.

The AMA is calling for an independent umpire to oversee private health insurers, and for private health insurers to have a minimum benefits payout ratio of 90 cents in the dollar - on average they are currently only paying 83 cents in the dollar.

Australian Medical Association (AMA) analysis also found that private health insurers increased their profits and increased management expenses.

How much management expenses (e.g., bonuses, marketing) did your health insurer spend?

Are you getting value from your health insurance?