Hospital group backs private national efficient price

The country’s largest not-for-profit hospital group has united to back the government’s proposal for a Private National Efficient Price (PNEP), calling it a crucial reform to restore fairness, transparency, and stability to private hospital funding.

The private hospitals CEOs Group, representing 63 non-profit hospitals, has strongly endorsed the proposal. They include Catholic Health Australia (CHA), St Vincent’s Health Australia, St John of God Health Care, Mater, Cabrini, Calvary Health Care, St Vincent’s Private Lismore, Canossa, and UnitingCare Queensland hospitals.

“For too long, private hospitals have been constrained by an opaque and inefficient contracting system that risks the future delivery of essential health care services” said CHA Senior Executive Forum Chair and St John of God Health Care Group CEO Bryan Pyne.

“A Private National Efficient Price will provide clarity and lay the foundations for a fairer and more sustainable health care system.”

Mr Pyne said private hospitals across the country are working collaboratively to shape the reform to ensure it delivers for patients, clinicians and their communities.

“CHA members are committed to working together and with government to help get this right,” he said. “We are backing the Government’s effort to modernise pricing and contracting.

“While we are committed to this reform, we acknowledge that it will take time, time the sector simply does not have. Private hospitals are all facing intensive cost pressures, having to absorb significant nurse cost increases now, with many hospitals operating on extremely thin margins.”

Mr Pyne said short-term stabilisation measures were essential to prevent further service closures while the PNEP is developed.

“We need immediate, short-term investment that reflects the real cost of care to keep services open, maintain critical capacity and ensure hospitals can continue supporting the public health system. Insurers must play their part. We strongly support Minister Butler’s call for insurers to return more to hospitals and patients through a higher payout ratio.”

Mr Pyne emphasised that the success of the PNEP will depend on partnership between government, hospitals, private health insurers and clinicians.

“CHA members are deeply committed to working constructively with the Commonwealth,” he said. “Collectively, we bring the experience, data and operational insight needed to ensure the PNEP is not only technically sound, but also practical, safe and sustainable.”

“Short-term stabilisation and long-term pricing reform must be pursued together, as one protects the system now, and the other secures its future.”

“Private hospitals are a vital part of Australia’s health system. By working together, we can create a stronger, fairer and more secure future for the patients and communities we serve.”

Read CHA’s Position Paper on PNEP

Read CHA’s Submission on the Pricing Framework for Australian Private Hospital Services