Do we really want US-style managed care in Australia?

East Sydney Private Hospital.

Recent media reports suggest private health insurer Medibank is looking to invest in private hospitals.1

According to The Australian the medical insurer is keen to acquire East Sydney Private Hospital, to turn it into a mental health facility where patients’ admissions can be shorter than usual.

The move suggests Australian insurers are looking to invest in short-stay hospitals and day surgery assets in a quest to drive down medical insurance costs for customers.

This development should concern doctors, the public and private health insurance policy holders.