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The Australian Government is establishing a Private Health CEO Forum, following a private hospital sector financial health check.

Minister for Health Mark Butler said, 鈥淧rivate hospitals provide much-needed medical care to communities across the country and are fundamentally important to the broad operation of the entire healthcare system.

鈥淭here will be no silver bullet from Canberra or funding solution from taxpayers to deal with what are essentially private pressures in this system.

鈥淭he government will work in partnership the private health sector to develop innovative solutions which meet the needs of the sector and the Australian people,鈥� Butler said.

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 government acknowledged in a statement.

鈥淭his shows that there is substantial work for private health insurers and private hospitals to do to ensure the sector鈥檚 long-term viability,鈥� the statement said.

鈥満诹铣怨先和鴖 and insurers must work together in the interests of patients and in the national interest to support the entire health system.鈥�

The forum will bring together independent experts as well as leaders from private hospitals, private health insurers and medical groups to develop short-term options for government consideration and to commence work on long-term reforms to strengthen the sector鈥檚 financial viability.

Catholic Health Australia (CHA) welcomed the federal government鈥檚 report on the Private 黑料吃瓜群网 Sector Financial Viability Health Check.

鈥淭his report confirms what we have been saying for a long time 鈥� that the private health sector is under severe and unprecedented funding pressure, especially in mental health and maternity care,鈥� said CHA Director of Health Policy Dr Katharine Bassett.

CHA鈥檚 consultations with the government throughout the process were led by Cabrini Health CEO Sue Williams and Calvary Healthcare CEO Martin Bowles AO PSM.

鈥淲e thank the government for undertaking this important review and committing to swiftly identifying both short-term and long-term solutions,鈥� Bassett said.

鈥淲e look forward to working with all sector stakeholders, including insurers, medical groups, patients and independent experts, to ensure private hospitals continue to provide choice and high-quality care, and alleviate pressure on the public system.鈥�

CHA has proposed several short-term solutions to maintaining viability. These include: governments purchasing services from the private hospital sector to reduce public waiting lists; governments helping to fund wage growth in private hospitals; reducing the capital reserve requirements for private health insurers to increase the flow of funding into the system; reforms to the 2025 premium round to ensure hospital costs are reflected in premium increases; and government incentives to bring down out-of-pocket costs for maternity care.

鈥淣ow we know the extent and seriousness of the problem facing private health care, the whole sector needs to move quickly and cooperatively to implement solutions in the national interest. The establishment of the Private Health CEO Forum is a welcomed step to achieving this,鈥� Bassett said.

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