New Zealand Executive Government News Release Archive

30 August 1996

LABOUR HEALTH POLICY THREATENS VIABILITY OF SMALLER HOSPITALS

"Plans by Labour to stop public hospitals with spare capacity taking private fee paying patients will threaten the viability of some smaller hospitals and will mean those people in towns without private hospitals will be forced to travel for private care," said the Minister of Health Jenny Shipley today.

Hospitals in areas like Wanganui, the Wairarapa, Marlborough, and Ashburton benefit directly from treating private patients with in the spare capacity that is not required or used for other local health services funded by RHAs.

"I call on Labour candidates in these areas to explain to the people in these districts why the money for these services shouldn't remain in those districts. Instead Labour will force these people to travel for private hospital treatment, taking the money with them.

"The Government believes that public hospitals which have the capacity to do extra work should be able to seek those opportunities. It is also very important in assisting in attracting and retaining specialists and surgeons to these regions

"Rules have been changed so that private patients can be treated in public hospitals so long as those hospitals have met their public hospital commitments. This is similar to the rules in Australia and Britain.

"Another important change has been allowing ACC to purchase operations directly from public hospitals. Previously ACC could only buy operations from private hospitals. Some of the $25 million that ACC spends annually on non-urgent surgery can now be spent with public hospitals. This measure will also assist in retaining full services in provincial areas.

"Labour wants to return to the past where the private health sector was protected by the old ACC arrangements. This favours individual doctors in city settings.

"This one aspect of Labour's health policy demonstrates that Labour have failed to think through the issues. They have become so caught up in their own rhetoric that they would allow smaller hospitals to close rather than ensure the viability of hospitals in towns like Masterton, and Ashburton," concluded Mrs Shipley.

Inquiries: Bronwyn Saunders ph 4719113 or Helen Hayes ph 4719861.

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