Private Hospitals, Ama Vow To Fight Health Plan
Sydney Morning Herald
Thursday November 25, 1993
Private hospitals and doctors said yesterday they would refuse to participate in a scheme designed by the Minister for Health, Senator Richardson, to reform the private health insurance industry.
Senator Richardson told the annual general meeting of the Australian Health Insurance Association (AHIA) in Launceston on Tuesday night that his reform package, due to go to the Cabinet in mid-December, contained three major components.
Despite opposition from the Prime Minister, the package will contain a higher Medicare levy - as well as plans to amalgamate the funds to fewer than 20 and a scheme to provide a single bill for privately insured hospital patients.
The amalgamation plans may include measures to abolish employer-based health funds, which Senator Richardson believes steal business away from the registered funds by providing cheap alternatives.
The controversial reforms are designed to revive the flagging membership of the funds and to encourage the use of private hospitals in order to take the burden off the public hospital system.
But the chief executive of the AHIA, Mr Russell Schneider, said last night the mood among the fund executives after Senator Richardson's speech was one of great uncertainty. The smaller funds would almost certainly oppose amalgamation, he said.
Senator Richardson told the funds that in order to provide the patient with a single bill, he would legislate to enable them to negotiate with private hospitals about the cost of each treatment.
The plan would mean patients would be covered for the full cost of their treatment and the doctors would be paid by the hospital.
Senator Richardson said he was convinced the system would work because it would cover patients for the full cost of their treatment while putting a cap on doctors' fees.
But the executive director of the Australian Private Hospitals Association, Dr Greg Herring, said last night that his association refused to enter into contracts with doctors.
"We have no ability or interest to contract with doctors," Dr Herring said. "Why are we going to be the martyrs of the Western world |"
The Australian Medical Association (AMA) vowed yesterday to fight any moves which would take away the right of doctors to give bills to their patients.
"If hospitals and doctors don't co-operate this scheme will never work,"the president of the AMA, Dr Brendan Nelson, said last night.
But Senator Richardson said "self-interest" was the key to his plan.
"So, your self-interest will be in ensuring, along with private hospitals industry, that that gap, the medical component, is not exceeded.
"While you may believe that I am not an expert in any of this, I am a world expert on power. Without increasing the size and capacity of your organisations you won't be able to perform the task this legislation will set
Senator Richardson's $100 million plan to reduce hospital waiting lists will be considered by the Cabinet today.
© 1993 Sydney Morning Herald
Share This