‘SA exposed’: Ministers clash over proposed health changes
The state and federal Labor health ministers are at loggerheads over aged care funding, as the state government adds temporary capacity to the hospital system.
The South Australian Health Minister has put Federal Labor on blast today over its proposed changes to private health insurance rebates.
SA Health Minister Blair Boyer warned the changes could cost SA hospitals up to $60 million a year.
If implemented, the Commonwealth’s changes would reduce aged-based private health insurance rebate loading by around four percentage points for people aged 65 to 69 years and by around eight percentage points for those aged 70 years and over.
Boyer said SA was “particularly exposed” to the proposed changes, with Melbourne Institute modelling showing even a modest reduction in private health insurance participation among older people could increase demand on public hospitals.
Approximately 58.2 per cent of South Australians aged 65 and older hold private health insurance, the Minister said. Older South Australians are also the main users of private hospital services.
Boyer was concerned that unless Federal aged care investment was accelerated, the changes would result in additional pressure on hospitals in SA.
The Health Minister said he wrote to his federal counterpart – South Australian MP Mark Butler – to “make it clear that SA would prefer the full private health insurance rebate to remain in place”.
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“We need assurance that our public hospitals will not be left carrying additional demand if older South Australians decide private health cover is no longer affordable,” he said.
“That concern is heightened by the fact there are currently 484 older patients in SA Health facilities waiting for a Commonwealth-funded aged care placement.
“South Australia has the oldest population per capita on the mainland, and we cannot afford changes that shift additional pressure onto a public hospital system that is already managing significant demand.”
A Federal Government spokesperson hit back at Boyer, saying the Commonwealth “worked with South Australia in good faith, and it is now time for them to deliver on their promises to give Australians better access to health services, when and where they need them”.
“Under the new hospital funding agreement, the Commonwealth is delivering an additional $25 billion in hospital funding to the states and territories including an additional $2 billion to SA over five years. That takes the Commonwealth contribution to South Australia hospital funding to $15.2 billion over five years,” the spokesperson said.
“During hospital funding negotiations, the states told us older long-stay patients were the biggest issue when it came to the hospital system. In response, our government proposed a ringfenced $2 billion for aged care services as part of the agreement, but states and territories rejected that offer, instead choosing to direct that funding into their hospital systems.
“We know there is a big challenge ahead to lift bed capacity in aged care to meet increasing demand and that is why our government is making record investments in our residential aged care and home care system.”
SA Liberal spokesperson for health Jack Batty said Boyer had to “stop Labor’s unfair changes”.
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“He says he opposes them — well, pick up the phone to Canberra and make sure your Labor mates dump them,” Batty said.
“Blair Boyer himself is warning these changes could push South Australians out of private health insurance and put even more pressure on our public hospitals.
“Our hospitals are already struggling with record ramping, long waiting lists and hundreds of patients stuck waiting for aged care. The last thing they need is thousands more South Australians being pushed towards the public system.”
New temporary aged care facility to open
Meanwhile, a temporary 20-bed unit for older South Australians at the Lyell McEwin Hospital will open on Monday as the state government grapples with “significant demand” for aged care placements.
The ‘Older Adults Supportive Interim Stay Unit’ (OASIS Unit) was announced this morning by Boyer, who said the facility would improve patient flow, increase capacity and reduce pressure on emergency departments.
The OASIS Unit would provide short-term care for older people who no longer need hospital treatment but are awaiting longer-term care arrangements.
Boyer cited figures showing 106 patients at Lyell McEwin Hospital and Modbury Hospital were waiting for aged care placements, saying the new unit would free up hospital capacity for other patients.
“One of the biggest challenges facing our hospitals is the number of patients who are ready to leave hospital but remain in a bed while awaiting aged care placements or other discharge arrangements,” he said.
“With more than 100 patients currently waiting for aged care placements across Lyell McEwin and Modbury hospitals, this new OASIS Unit will provide appropriate care for older South Australians while freeing up beds for patients who need acute treatment.”
Boyer reiterated calls for Commonwealth investment into the aged care sector.
“Despite there never being more investment in our health system and an additional 700 beds across the state – beds that were designed for future planning and demand – they are instead being taken up by aged care patients waiting for a residential aged care placement, which is a Commonwealth responsibility,” he said.
“Across Australia, we need an additional 10,000 aged care beds every single year. Last year we had just 800.”
A spokesperson for Minister Butler said: “We’ve already invested an unprecedented $1 billion through our aged care capital grants program, including more than $152 million for projects in SA, with investments in 2026 unlocking 268 new beds in metropolitan Adelaide”.
“Our government has made record investments in our residential aged care and home care system to ensure every older Australian gets the care they deserve, and doesn’t have to languish in hospital when they could recover at home.”
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