In the wake of Healthscope’s Hobart closure the extra dollars will boost capacity. There’s no word on whether the NT government will get a similar hand-out.
The federal government will tip another $6 million into the Tasmanian government’s coffers to support the “expected increase” in demand for maternity services across the state’s public and private systems following Healthscope’s decision to close the Hobart Private Hospital’s service.
On 20 February, the troubled private hospital operator announced it would be closing maternity services at Darwin Private from 17 April, and at Hobart Private from 20 August.
While health minister Mark Butler has refused to countenance a financial bailout for Healthscope, the new funding for the Tasmanian government will go to upgrading infrastructure and equipment in the Tasmanian Health Service and at Calvary Lenah Valley.
“This funding will improve both capacity and capability of the local hospitals to provide such services,” said the Department of Health and Aged Care announcement.
Mr Butler said women “deserve choice”.
“[That includes] policy holders who have who have taken out gold coverage and want to give birth in a private hospital,” he said.
“Private health insurers and private hospitals need to work together in the best interests of patients.”
Tasmanian health minister Jacquie Petrusma said the extra funding would ensure the Royal Hobart Hospital and Calvary Lenah Valley would be able to meet demand.
“Importantly, the funding will also assist us in moving the mother and baby unit from the RHH to St John’s Park in New Town, which will also have the added benefit of providing more holistic support outside of a hospital setting for mothers experiencing postnatal challenges,” she said.
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“Our number one priority is ensuring mothers and babies have the appropriate support and services they need during their birthing journeys.”
HSD reached out to the DoHAC to find out if the Northern Territory government would also be receiving financial assistance from the federal government to meet demand in Darwin. There had been no response by publication deadline, but this story will be updated with any response we receive.
Calvary Health Care’s CEO Martin Bowles said Calvary Lenah Valley was preparing to pick up as many additional births “as possible”.
“We won’t let this go unattended,” Mr Bowles told the ABC.
“We’re now in the process of trying to manage quite a doubling of activity in this hospital over the next little while.
“And we’ll continue to have those conversations to make sure that we can actually cope with whatever comes across over the next few months.”
Mr Bowles said the hospital would also require “midwifery workforce attraction and retention strategies, investment in necessary infrastructure upgrades, and sufficient private insurer funding for maternity”, to ensure a sustainable and safe maternity service into the future.
“The reality is … the nurses and midwives who work in that facility, they want job security,” he said.
“And we’ll work with them to transition them — the obstetricians, the paediatricians and all of the different workforce elements that are required.”
CEO of the Australian Private Hospitals Association, Brett Heffernan took the opportunity to take another swipe at the insurance industry, saying funds were “banking premiums instead of covering the actual costs of healthcare in private hospitals”.
“Is it any wonder services are closing?” he said.
“The health insurers posing solutions to the maternity crisis is a bit rich. They’ve been raking in people’s gold level premiums for years pretty sure they will never use their maternity cover due to the massive out-of-pockets charged by obstetricians.”