Patients stranded as the care economy fails to connect: CHA calls for coordinated reform
July 2, 2026
Catholic Health Australia (CHA) has welcomed the Federal Government’s release of its first private health sector reform consultation paper, which puts forward concrete proposals to improve patient access, support struggling hospitals and deliver better value for consumers.
The paper sets out reforms across Hospital in the Home, maternity care, mental health and access to regional private hospitals, alongside measures to simplify private health insurance products and deliver better value for patients.
“This is a serious, substantive package that takes on problems patients and hospitals have been raising for years,” said CHA Acting Chief Executive Officer Dr Katharine Bassett. “CHA has advocated for action on every one of these fronts, and we support the direction the Government is taking. We will engage constructively across the consultation.”
In the past five years, over 90 private hospital services have closed, including maternity wards, surgical units and mental health facilities that communities relied on. The latest data shows private hospitals posted an operating loss of $756 million, while private health insurers posted $2.7 billion in profits in 2024-2025.
“CHA also acknowledges the work the Government has put into getting here. The CEO Forum has given the sector a genuine seat at the table, and this paper reflects the Government has listened. Bringing these reforms forward in time for the 2027 premium round shows a willingness to act rather than review indefinitely,” said Dr Bassett.
“A minimum benefit for Hospital in the Home, support for regional hospitals, and reforms to make maternity and mental health cover more sustainable are exactly the kinds of reforms the sector needs, and the ones CHA has been calling for. The Government has identified the right issues.”
In addition to the reforms proposed in this paper, CHA is continuing to advocate for long-term pricing reform and improved data transparency.
“For too long, private hospitals have been constrained by an opaque and inefficient contracting
system that favours powerful insurers and risks the future delivery of essential health care services,” said Dr Bassett.
“A transparent and evidence-based funding model would provide clarity and lay the foundations for a fairer and more sustainable health care system.”
Dr Bassett urged the government to move swiftly on the reforms proposed today. “Every month we wait, more services close and more patients lose access to care they have paid for. The priority now must be turning these proposals into changes that take effect in the 2027 premium round,” Dr Bassett said.
