News
Collapse shows scope of private problems
Thursday May 29, 2025
Healthscope’s collapse should be a warning to both the State and Federal governments about the parlous state of the private hospital system, according to AMA (WA) President Dr Michael Page.
The parent entities of Healthscope, one of Australia’s largest private hospital owners, which includes WA’s Mount Private Hospital in its portfolio, have gone into receivership.
Dr Page said whilst there were some unique corporate factors involved in Healthscope’s demise, the fundamental issue was the vital role played by private health in our State.
“Western Australians rely on the private system to a greater degree than the rest of Australia and the public system – already itself in dire condition – will never be able to pick up the pieces from a diminished private sector,” he said.
“The mix of strong private and public sectors is precisely why we have historically had such a strong overall health system. The private hospital system needs major Federal support, and it needs it now.”
AMA President Dr Danielle McMullen said the AMA had been monitoring the uncertain situation in relation to Healthscope for several months and has been in constant liaison with the federal minister’s office and the Department of Health, Disability and Ageing.
“The Healthscope network of hospitals is a key part of private healthcare delivery in Australia,” Dr McMullen said.
She welcomed the commitments given that the operation of Healthscope’s hospitals will continue as normal, and that additional funding has been provided to support their operation.
“We also welcome the receiver’s stated intention to transition all hospitals to new ownership, with no plans for hospital closures or redundancies,” Dr McMullen said.
The AMA President was heartened that there was a clear commitment to the continued operations of the Healthscope hospitals and patients can continue to schedule their procedures and other treatments with confidence.
“This is good news for patients, as well as the doctors, health professionals and staff working in Healthscope hospitals.”
In September 2024 the AMA (WA) convened the AMA (WA) Private Health and Hospital Summit. Among the reasons for the summit, which brought together leaders from the ranks of Private Health Insurers, Private Hospitals, Medical Practitioners (Procedural and non-procedural) and the Department of Health, were that:
- Western Australia has the highest rate of private hospital coverage in the country (54%, compared to 44% nationally);
- Over 60% of elective surgeries are performed in private hospitals;
- The private health insurance market is dominated by one major player;
- WA is home to two of Australia’s largest private hospitals, each operated by one of the two leading providers;
- The State has a rapidly ageing population; and
- WA has the largest number of licensed hospital beds in Australia.
Dr McMullen said the Federal Government had been engaging with Healthscope, and with the decision to appoint receivers, the AMA expects the government to play a strong role in helping to ensure this process goes well and Healthscope’s network of hospitals is maintained.
“We also welcome the commitment by the receivers to engage constructively with all key stakeholders,” Dr McMullen said.
“The AMA is ready to work with the receivers as part of ensuring the uninterrupted operation of Healthscope hospitals.
“Private health is an essential part of Australia’s healthcare system and the situation that has emerged with respect to Healthscope further reinforces the need to adopt the AMA’s proposal for an independent Private Health System Authority giving much better oversight of the sector.”
