Impact of the Current Regulatory System
The Bed Cap
Differential Treatment of Public and Private Hospitals
Growth of Unregistered Day Procedure Centres

The 1994 Draft Guidelines
Overview and Objectives of the Draft Guidelines
Issues in Response to the Draft Guidelines

Policy Objectives
Overview
An Economic Rationale for Government Regulation of Private Hospitals?
Promoting Quality
Conclusion
Towards a New Framework for Government Regulation of Private Hospitals
The Proposal: Deregulation of Most Planning Controls for Private Hospitals
The Proposal: Review of the Quality Framework for Private Hospitals
The Proposal: Introduction of Service Development Guidelines for Public and Private Hospitals
Further Action and Consultation

This discussion paper takes a fresh look at the way in which government relates to private hospitals.

The last year has witnessed some major changes in the operating environment for public and private hospitals. The establishment in July 1995 of new metropolitan health care networks provides an exciting opportunity to encourage better coordination and strategic planning of Melbourne's public hospitals.

Under the health insurance reforms, both private and public hospitals face new challenges in negotiating contracts with health insurance organisations which provide better value for money and access to services where people live. These reforms support a change to a less interventionist role for government in the private health care industry.

Across Australia governments are re examining the roles of the public and private sector, in response to their endorsement of the Competition Principles Agreement. States have made a commitment to review unnecessary regulation of the private sector to ensure a level playing field between public and private services.

This discussion paper contains options including a less prescriptive role for government in managing the location and distribution of private hospitals in Victoria. In recognition of the vital need to ensure the provision of high quality health care, the discussion paper also proposes a review of the existing quality framework for private hospitals.

An Impact Assessment study of the proposals in this discussion paper will be commissioned and made widely available.

I commend this paper for your consideration and hope that it stimulates a healthy debate on the future role of private hospitals in the Victorian health care system.

Minister for Health