‘The best thing the Federal Health Minister can do to preserve the advantages of Australia’s
balanced public/private healthcare system is to ensure that health insurance, private hospitals
and medical services are kept separate and free from conflicts of interest’, Mr Stephen Milgate,
CEO of the Council of Procedural Specialists, said today.
Allowing any corporation to provide health insurance and hospital and medical services may
ultimately result in a restriction of choice for the millions of Australian patients who use the
private health sector.
It is in the DNA of for-profit health corporations to seek to control their business activities in
order to maximise returns to investors.
This motivation does not naturally fit with Australia’s traditional commitment to community
rating (equal sharing of burdens) in the private health insurance industry.
Sadly, the two can clash and may result in detriments to patients.
The recent admission by Bupa Healthcare that the company has wrongfully denied some
patients their entitlements by incorrectly rejecting their claims for healthcare benefits1 is
welcome, as is Bupa’s agreement to compensate members who were incorrectly denied
benefits under their policy terms and conditions.
‘Australia’s excellent reputation for clinical care is in no small part due to the balance achieved
in our public/private system and the regular movement of medical specialists between both
sectors’, Chairman of the Council of Procedural Specialists A Prof David Scott said. ‘This is
underpinned by a Medicare system that supports patient choice of doctor.’
The Australian constitution has safeguards to prevent the conscription of doctors by
government, upholding the central role of the doctor/patient relationship. However, a new
threat, namely corporate takeover of hospital and medical services, has arisen, which needs to
be checked in order to preserve the central role of the doctor/patient relationship.
Catholic Health Australia, the Australian Private Hospitals Association and the AMA have
warned against allowing corporate health funds to extend their ownership of medical services
and private hospitals (a process known as vertical integration) and the potential for this to lead
to a US-style system of managed care. The Council of Procedural Specialists shares these
concerns.
The Council of Procedural Specialists calls on the Minister for Health to defend Australia’s
uniquely balanced healthcare system and not allow a corporate takeover of significant sections
of the private healthcare sector, which is underwritten by Medicare.
A Prof David Scott OAM
Chair
Council of Procedural Specialists
Mr Stephen Milgate AM
CEO
Council of Procedural Specialists
stephen@milgate.net
