How to make hospital funding fairer

by Stephen Duckett


In theory, Commonwealth Government funding to the states and territories for public hospital services is supposed to ensure that total payments for public and private patients are equal. In practice, it doesn’t work that way: states can get more revenue for treating private patients than they get for treating public patients. This is counter to the intent of Medicare and the principle of public-private neutrality.

In this submission to the Independent Hospital Pricing Authority on the draft 2020-21 Pricing Framework, Grattan Institute’s Health Program Director Stephen Duckett exposes the flaws in the national funding arrangements and suggests some solutions.

Download the submission