Tammy Tyrrell (Tasmania, Jacqui Lambie Network) Share this | Link to this | Hansard source

My question is for the Minister representing the Minister for Health and Aged Care, Senator Gallagher. Private hospitals, especially not-for-profit services, are losing money and fast becoming unsustainable. If private hospitals in Tasmania and other regional areas close down, it will become even harder for us to access healthcare in an overstretched system. At the same time, private health services have told me they have empty elective surgery and psychology beds. What is the government doing to address underutilised and unsustainable not-for-profit private health services and ballooning elective surgery and psychology waiting lists in our public system?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I thank Senator Tyrrell for the question and for her ongoing advocacy and interest on health care in Tasmania. The question Senator Tyrrell asks really goes to a state government responsibility here, because, whilst the Commonwealth funds and makes a contribution to hospitals, they are owned and operated by state governments and state health services. Whilst there have in the past been public-private partnerships with private hospitals to ensure that, if there is excess capacity in those hospitals, public lists can be delivered through private arrangements, they have been—

Sorry, Senator Ruston keeps interjecting. I can't hear her. I can't hear what you're saying, Senator Ruston, but you are interrupting.

Opposition senators interjecting—

Well, it's not so much if it's a one off. It's just that when it's persistent it does distract you from your answer.

But the point you raise is one where I think most state governments that I know have entered into arrangements with private hospitals for exactly those sorts of things, including in mental health services and definitely elective surgery. So there is nothing stopping that. I know the Department of Health and Aged Care, under Minister Butler's leadership, is looking at the issues that private hospital providers, particularly those not-for-profit providers, have raised about viability and pressures in the system, and I think it's in everyone's interests to make sure that the private and public hospital systems continue to operate. Obviously, they do rely on each other. The private system often does the high-volume, low-acuity work, and then the public sector does all the other areas. But it's absolutely important that they work together, and I know the Department of Health and Aged Care is looking into some of those viability issues. (Time expired)

Sue Lines (President) Share this | Link to this | Hansard source

Senator Tyrrell, first supplementary?

Tammy Tyrrell (Tasmania, Jacqui Lambie Network) Share this | Link to this | Hansard source

During the COVID-19 pandemic, as you mentioned, Tasmanian private hospital services were used to reduce the elective surgery waiting lists, so we know that it can be done. Will the government consider a shared-care model where elective surgery and psychology services are provided in private hospitals that are operating under capacity so private health services can become more sustainable and elective surgery waiting lists are reduced?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

We're really keen to work with the state governments and anyone else who's interested to ensure that demand for health services more generally is being met. That's why we've had a lot of focus on urgent care clinics and ensuring that, under Medicare, people are able to afford, basically, to go and see a GP, because that helps public hospitals by keeping people out of hospital.

But the point you raise is: when you are needing hospital care, how do you make sure that you can optimise the arrangements there? Certainly, from our point of view, we have no issue with public health systems engaging with private health systems to deliver the programs and operations that are needed. It really is a matter for those state hospitals, though. We work very closely with the Tasmanian government in these areas and are very open to suggestions from the Tasmanian government. I acknowledge you've got a small health system in Tasmania, and the public and private systems need to work together.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Tyrrell, second supplementary?

Tammy Tyrrell (Tasmania, Jacqui Lambie Network) Share this | Link to this | Hansard source

The Department of Veterans' Affairs cost model provides a minimum fee to private hospitals to provide care to eligible patients receiving care in private health settings. Will the government consider this already proven model as a way both to support private hospitals providing care and to ease elective surgery waiting lists?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

Well, in a sense, when public hospitals do engage the private hospitals, it's usually done on a model like that of Veterans' Affairs, so it's usually for the national efficient price of that particular procedure. That underpins the arrangement. So I think that largely exists now. I think it really is a matter of what the public hospital system can afford. Obviously they are paying for all their operating theatres and their staff. They are dealing with all the emergency work that comes in as well as the elective work. Something the private system can offer is that they are not constrained by emergency work. But it really comes down to what's affordable and how you manage all the work that's required. But definitely utilising the private system to help is part of the solution in the longer term, as is keeping people out of hospital and using new technology to make sure people don't have to undergo operations as well.