Impact Assessment Study- The Role of Government in Regulating Private Hospitals feb 1996

Metropolitan Health & Aged Care Services
Department of Human Services
A Victorian Government Department, Australia

Private Hospitals in Victoria Publications <<

IMPACT ASSESSMENT STUDY

THE ROLE OF GOVERNMENT IN
REGULATING PRIVATE HOSPITALS

February 1996

TABLE OF CONTENTS

INTRODUCTION
TERMS OF REFERENCE
EXECUTIVE SUMMARY
3.1 Profile of the Private Hospital Sector
3.2 Nature and Extent of the Bed Trade
3.3 Impact of the Bed Cap
3.4 Impact of the Proposed Deregulation
3.5 Conclusions
3.6 Transitional Issues
OVERVIEW OF THE HEALTH CARE SYSTEM
4.1 Broad Statement on Structure of the Industry
4.2 National and State Legislative Framework for the Health Care System
4.3 Financing of Private Hospitals
4.4 Allocation of Resources Within the Public and Private Sectors - Some Current Issues
PROFILE OF THE PRIVATE HOSPITAL SECTOR
5.1 Concentration and Distribution of Private Hospitals
5.2 Size Range of Acute Private Hospitals and Day Procedure Centres
5.3 Ownership Profile of the Private Hospital Sector
5.4 Demand for Private Hospital Services
5.5 Relationship Between Private Hospitals and Private Health Insurance Funds
5.6 Casemix of Public and Private Hospitals
5.7 Private Hospital Occupancy Rates
5.8 Private Hospital Cost Structure
IMPACT ANALYSIS OF THE CURRENT STATE REGULATION OF PRIVATE HOSPITALS
6.1. Overview of the Current Regulatory System
6.2. Welfare Economic Analysis of the Bed-Cap Regulation
6.3. Government Regulation and Rent-Seeking
6.4. Nature and Extent of the Bed Licence Market
SIZE, CONCENTRATION & DISTRIBUTION OF THE PRIVATE HOSPITAL & DAY PROCEDURE CENTRE SECTOR
7.1. Private hospitals
7.2. Day procedure centres
UTILISATION RATES IN EXISTING PRIVATE HOSPITALS & DAY PROCEDURE CENTRES
8.1. Overview
8.2. Supplier Induced Demand
8.3. Utilisation of public hospitals
8.4 Rural hospitals
LIKELY IMPACT OF REMOVAL OF THE BED CAP ON THE NUMBER OF PRIVATE HOSPITAL & DAY PROCEDURE CENTRE BEDS
COMPETITION AND ALLOCATIVE EFFICIENCY OF THE ACUTE HEALTH CARE SECTOR
10.1 Introduction
10.2. Access and costs for consumers
10.3. Impact of deregulation on the private health insurance funds
TRANSITIONAL ISSUES
11.1 Introduction
11.2 Considerations in determining whether transitional strategies are required in a particular case of deregulation/reregulation
CONCLUSIONS
12.1 Costs
12.2 Benefits
12.3 Weighing the balance
12.4 Transitional issues
BIBLIOGRAPHY

APPENDIX 1: REVIEW OF PRIVATE HOSPITAL AND DAY PROCEDURE CENTRE REGULATION IN OTHER STATES

APPENDIX 2: SUMMARY OF SUBMISSIONS ON PRIVATE HOSPITALS REGULATION PAPER

1. INTRODUCTION

The Office of Regulation Reform within the Department of Business and Employment was commissioned by the Department of Health & Community Services in December 1995 to undertake an Impact Assessment Study of the proposals concerning deregulation of most planning controls outlined in the Discussion Paper, The Role of Government in Regulating Private Hospitals.

The report assesses the effectiveness of the current regulatory framework governing the private hospital sector, the impact of the proposed deregulation on the public and private hospital sectors, private health insurance funds and consumers. The study also examines regulation of the private hospital sector in other states and transitional issues associated with deregulation such as compensation and staging.

The report was researched and prepared by Martin Oakley, Sandra Denis and Geoff Hargreaves. The Office of Regulation Reform would like to acknowledge the assistance of Sharon Willcox, Program Manager and Katie Karanika, Project Officer from the Health Financing, Acute Health Services Division, Department of Health & Community Services.

February 1996 Rex Deighton-Smith
Director

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