President’s Report

Chris Rex, President

December 2009

I am pleased to be writing this first annual review as President of the Australian Private Hospitals Association and am looking forward to my second year in this position representing members on the wide range of issues that are currently affecting the private hospital industry.

2009 proved to be a tumultuous year for the private health care industry in Australia with a number of proposals (Medicare Levy Surcharge changes and cuts to the 30% private health insurance rebate) threatening to destabilize our current balanced health care system as well as several issues, such as the NSW blood tax and the award modernization process which could have had extremely negative economic implications for members.

In the main, I believe that the APHA, as the peak industry body for private hospitals, has been able to adequately represent our members on these issues and we have been successful in negotiating more reasonable outcomes in most circumstances.  However, the private hospital sector is certainly moving into more challenging times and it is increasingly important that we have a strong voice, delivering a consistent message.

At the same time, we have a lot to be optimistic about.  Private hospitals are well placed to assist the government to meet the healthcare needs of a rapidly increasing and ageing population. In 2010 the oldest of the baby boomers will be 65 years – so increased utilization of hospital services by older Australians is imminent.  By 2030 they will account for twice as many hospital admissions as they do today and will use more healthcare resources than past generations because they will be living longer and managing more complex conditions. Private hospitals are already a very significant part of the delivery of hospital services in this country with over 3 million Australians (representing 40% of hospital admissions) being treated each year.

We have made it clear to government this year that the private sector is a willing partner in any attempts to improve the healthcare system in Australia.  Australia’s balanced health care system has achieved great success by drawing on the strengths of the private and public sectors and this should continue.  To this end, it was pleasing that the report of the National Health & Hospitals Reform Commission released this year supported the current overall balance of financing of the system through taxation, private health insurance and out-of-pocket contribution and proposed that this should be maintained over the next decade.

In closing, I would like to thank the APHA Council and our nine member Board – particularly Vice President Richard Royle and Chair of Council Ben Thynne.  The input and work of the members of the APHA taskforces is also extremely appreciated.

Special thanks should also go to the APHA Secretariat led by Chief Executive Michael Roff.  The secretariat do an outstanding job in all areas from public affairs to policy development.  In my year as President I have not only found them willing and able but extremely reliable and generally a great group of people. On behalf of all the members I acknowledge the APHA staff for their commitment and dedication in 2009.