Secret plan for radical hospital overhaul leaked
Leaked documents obtained by Fairfax Media show the nation’s top government officials are considering a radical hospital overhaul.
The secret taskforce is developing a proposal for a “Commonwealth Hospital Benefit”, a new funding formula for public and private hospitals.
Fairfax Media understands that under the proposed plan, the private health insurance rebate would be scrapped, consumers charged more for extras cover and the states would be forced to find more money for public hospitals as federal funding would be reduced.
The Commonwealth would combine the $20 billion it currently gives to public hospitals each year with the $3 billion it pays the private sector and the $6 billion it spends on the rebate.
The “pooled” money would be used to pay a standard benefit for services. This is regardless of whether they are performed in a public or private hospital, or whether people choose public or private.
Currently, the Commonwealth pays approximately 40 per cent of the cost of public hospitals. Under the proposed scheme, this would be reduced to 35 per cent.
"States would be required to meet the balance of the cost for public patients thus maintaining free public hospital services," says the department's presentation.