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Report confirms Commonwealth policies are on track

The Federal Minister for Health and Ageing, Senator Kay Patterson, welcomed the Australian Institute of Health Welfare (AIHW) report, Australian Hospital Statistics 2001-02.

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29 June 2003

Report confirms Commonwealth policies are on track

The Federal Minister for Health and Ageing, Senator Kay Patterson, today welcomed the Australian Institute of Health Welfare (AIHW) report, Australian Hospital Statistics 2001-02.

"What this report demonstrates is that the Commonwealth's policy of providing strong support for both the public and private sector is on track and working," said Senator Patterson.

In particular the Minister drew attention to the growth in private hospital admissions.

"Private hospital admissions grew by 9.5% in 2001-02, and following a fall last year, public hospital admissions grew by just 2.6%," said Senator Patterson.

More than four out of 10 procedures are now undertaken in private hospitals, which include many complex procedures. For example, more than half of all chemotherapy admissions in Australia are in private hospitals.

With a greater proportion of the growing activity in the hospital sector taking place in private hospitals, pressure is being relieved from public hospitals.

"This shows two things: that the private system is effectively reducing the burden on the public system, and that the Government's private health reforms are continuing to work.

"This Government's policies have created a sustainable private health insurance system that continues to relieve the pressure on the public system, which we have provided record funding.

"Without the 30% rebate and the influx of younger members caused by Lifetime Health Cover many older people would be unable to afford private health insurance and would be reliant on public hospitals."

In supporting this, Senator Patterson also highlighted several other facts evident from data in the report:

  • 62,000 fewer people were treated in public hospitals, than would have been the case if growth was evenly spread between public and private hospitals.
  • Private hospital admissions grew by 9.5% in 2001-02, while public hospital admissions only increased by 2.6%.
  • The number of patient days in public hospitals in 2001-02 increased by 0.6%, while growing by 3.3% in private hospitals.
  • Over the period 1993-94 to 2001-02, the number of patient days has decreased in public hospitals by 5.1% and increased in private hospitals by 36.0%.

In light of the report Senator Patterson renewed her call to State Health Ministers to sign up to the new Australian Health Care Agreements.

"The offer on the table is a $10 billion increase over the current Agreements. It is 17% real growth over the next five years," said Senator Patterson.

"This is a generous offer, particularly given the growing trend towards use of private hospitals. It is time for the States to accept the deal and get on with the job of running their public hospital system."

Media inquiries: Randal Markey, Media Adviser, Senator Patterson's office, 02 6277 7220.