Yesterday’s Australian Health Ministers’ Conference delivered the key news that in six months almost 14,000 additional patients - 55% of the target - had received elective surgery because of the Government’s injection of $150 million for people on waiting lists. This funding was proposed to deliver 25,000 additional procedures within a year for people waiting longer than clinically recommended.

Health Minister Nicola Roxon has also confirmed that the increase in the Medicare Levy threshold and its impact on public hospitals had been discussed.

Some State health ministers appear to be playing down the impact on their public hospitals. When asked if there would be additional demand for public services, Queensland Health Minister Stephen Robertson said “the jury was out” and there was no evidence that the “changes will have the impact that has been suggested by the private health insurers”.

Tasmanian Health Minister Lara Giddings has also said she had seen no evidence to suggest that the changes to the surcharge would have a dramatic effect on demand.

The Australian Health Insurance Association (AIHA) has previously claimed that 908,163 people will drop out of PHI and join public hospital queues. The AHIA has said this would mean the State Governments would require an additional $439 million in 2008/09 to cover the hospital costs of these people. The Federal Budget Papers show a saving of $231.6 million in 2008/09 from changes to the rebate threshold.

But it could be argued that those who drop their insurance will predominantly be young people who are low users of public hospital services and that others with PHI would always have gone to public hospitals anyway – thereby minimising the impact of the threshold change.

As the policy move evolves, it will be interesting to see if there is indeed a blow out in waiting lists and the solution the Commonwealth puts on the table at future Health Minister’s meetings to deal with it.

Other issues discussed at yesterday’s meeting:
• As part of the negotiations for the Australian Health Care Agreements all factors driving growth in demand for public health services would be considered.
• Improving quality care through a Charter of Patient Rights.
• The standardisation of hospital patient ID bands.
• Examination of the consistency of standards and regulation in cosmetic surgery.
• The development of performance indicators.
• Agreement on the development of the Fourth National Mental Health Plan.

The Australian Health Ministers’ Conference Communique is available at: http://www.health.gov.au/internet/main/publishing.nsf/Content/Media+Releases+Communiques-1