Australia: Federal health reform plan

March 4, 2010

Hospitals would be rewarded for reducing spending under the federal health reform plan, but experts say this could distort patients’ treatment and may not account sufficiently for differences between states. Under the plan, the government would give public hospitals 60 per cent of independently arbitrated ”efficient prices” for patient care. Uniform national prices for everything from hip replacements to stroke rehabilitation – to be phased in over several years – would mean hospitals which find ways to treat patients less expensively would benefit from an extra windfall. Those where costs were higher than the predetermined price would be left out of pocket. (Sunday Morning Herald)