“”The deregulation of health services planning will create a profit-driven gold rush.”: John Kaye Photo: Andy Zakeli
Health officials will no longer be able to prevent private hospitals from opening up in areas that are already well-serviced by the public system, under a bill before state Parliament.
Critics fear the move will allow private facilities to cherry-pick wealthier patients from the public system and will put public services at risk.
But the Australian Medical Association has welcomed the change, which the government says could lead to more competition and innovation.
The changes relate to rules that were designed to ensure that public investment in new hospitals and other health facilities could be planned according to population needs, by giving the head of NSW Health the ability to prevent new, private facilities from opening up in areas that are well catered for.
Greens MP John Kaye said the rules had been reviewed by the private health facilities advisory committee, which is dominated by private sector representatives, and could severely impact on publicly provided services.
“The deregulation of health services planning will create a profit-driven gold rush, in which private operators will seek to lure lucrative patients away from public hospitals,” he said. “Public hospital planning will be much more risky with governments less likely to invest in clinical facilities that are vulnerable to private sector cherry-picking.”
He said it could lead to the under-utilisation of existing services, giving the government an excuse to shut them down to save money.
NSW Nurses and Midwives’ Association general secretary, Brett Holmes, said the group was worried public services would be reduced when private operators moved in.
“We are very concerned about the potential consequences of a private operator moving into an area … the public hospital reducing its services in recognition of that private facility, which then goes broke, leaving inadequate services,” he said. “There are already examples of this happening in regional areas, in Bathurst and Lithgow.”
Mr Holmes said it was particularly worrying given state and federal governments were entering into “a new era” of privatisation of health services, including using private operators to run the new Northern Beaches Hospital.
“It could have a big impact on our expenditure on health services, it’s a potential money hole,” he said.
However, Health Minister Jillian Skinner said the provision in the Act had never been used, and general market conditions would ensure the head of the Health Department had appropriate oversight of the system.
“The secretary retains broad powers to refuse an application for a licence as set out in the Act,” she said. “In addition the secretary has the power to apply conditions regarding construction of a private facility in any approval in principle of the application, and can apply conditions regarding the operation of the facility on the final licence issued.”
On introducing the bill to Parliament she said the current system had the potential to be uncompetitive.
AMA NSW head Dr Saxon Smith said doctors were not concerned about the change.
“We welcome the opportunity to continue the public-private mix, which is necessary in Australia to allow us to continue to provide quality services,” he said.
A representative for the Australian Private Hospitals Association could not be contacted.