‘A cure likely to kill the patient’: Private hospitals warn fee fix will accelerate closures

The government wants to help private hospitals negotiate with insurers, but the hospitals want more.

The Federal Government wants to set benchmark prices as a reference point for private hospitals negotiating with insurers to fix what it sees as a broken industry.

Private hospitals claim it is a “cure likely to kill the patient”.

The government is canvassing support for a new Private National Efficient Price (PNEP), similar to the National Efficient Price (NEP) that underpins public hospital funding.

A copy of the proposal seen by 6minutes shows the government is suggesting calculating average prices for services based on quantity and complexity of care (Activity Based Funding), with adjustments to reflect the cost of medical devices and the importance of capital for private hospitals.