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1 Discussion paper - Public hospital separations by urgency category and funding source 2007-08 to 2015-16 Background At the 9 February COAG, First Ministers considered a Heads of Agreement on public hospital funding and health system reform. As part of this agreement, the parties have agreed to examine the impact of private patients in public hospitals. The text from the Heads of Agreement is listed below. Private patients in public hospitals 9. The Parties agree to ensure the information and process for patients electing to use private health insurance in public hospital emergency departments is appropriate, robust and best supports consumer choice. 10. In developing the NHA, the Parties will work together to: a. examine the underlying drivers of growth of private patients in public hospitals; b. develop reform initiatives to improve admission policy and practices to support patient choice, and to deliver comprehensive data provision and more consistent financial reporting on private patients; and c. examine the impact of historic changes to the original Medicare principles and ensure the final agreement supports access to public hospital services by all patients on the basis of clinical need. This paper will present some key statistics from an examination of public hospital data. The data presents public separations by urgency category and funding source for the years 2007- 08 to 2015-16. Illustrations of this data can be found in Attachment B. It should be noted that an urgency category of “emergency” does not necessarily mean that the patient was admitted through the emergency department. Attachment A1 sets out the definitions of the different urgency categories. This work has been prepared in the context of negotiations of the next National Health Reform Agreement. Summary of data analysis National level data An examination of the data reveals that on a national level, the growth of privately insured emergency separations has increased significantly for all urgency categories. Across each urgency category, the rate of growth of private separations significantly exceeds public separations. This data is illustrated on slide 1 of Attachment B.

Discussion paper - 2007-08 to 2015-16 The funding split of new emergency separations in Queensland since 2007-08 has also been illustrated on slide 7. While this graph demonstrates

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1

Discussion paper - Public hospital separations by urgency category and funding source

2007-08 to 2015-16

Background

At the 9 February COAG, First Ministers considered a Heads of Agreement on public hospital

funding and health system reform. As part of this agreement, the parties have agreed to

examine the impact of private patients in public hospitals. The text from the Heads of

Agreement is listed below.

Private patients in public hospitals

9. The Parties agree to ensure the information and process for patients electing to use

private health insurance in public hospital emergency departments is appropriate,

robust and best supports consumer choice.

10. In developing the NHA, the Parties will work together to:

a. examine the underlying drivers of growth of private patients in public

hospitals;

b. develop reform initiatives to improve admission policy and practices to support

patient choice, and to deliver comprehensive data provision and more

consistent financial reporting on private patients; and

c. examine the impact of historic changes to the original Medicare principles and

ensure the final agreement supports access to public hospital services by all

patients on the basis of clinical need.

This paper will present some key statistics from an examination of public hospital data. The

data presents public separations by urgency category and funding source for the years 2007-

08 to 2015-16. Illustrations of this data can be found in Attachment B.

It should be noted that an urgency category of “emergency” does not necessarily mean that

the patient was admitted through the emergency department. Attachment A1 sets out the

definitions of the different urgency categories.

This work has been prepared in the context of negotiations of the next National Health

Reform Agreement.

Summary of data analysis

National level data

An examination of the data reveals that on a national level, the growth of privately insured

emergency separations has increased significantly for all urgency categories. Across each

urgency category, the rate of growth of private separations significantly exceeds public

separations. This data is illustrated on slide 1 of Attachment B.

2

Since 2007-08, on a national level:

Private emergency separations have increased by 144%, compared with 26% for

public emergency separations.

Private elective separations have increased by 78%, compared with 21% for public

elective separations.

Private ‘other’ separations (e.g. maternity and dialysis) have increased by 106%,

compared with 42% for public ‘other’ separations.

Overall, privately insured separations represent a small proportion of total hospital

separations, at 14% of all separations. However, this is a significant increase since 2007-08

when only 9% were privately insured. In that time, publicly funded separations have

decreased from 91% to 86%. This data is illustrated on slide 2 and 3 of Attachment B.

State-level data

There are instances of extreme levels of growth in the number of privately insured separations

in a number of states. The following section details findings from two states, Queensland and

New South Wales. For your reference, data from the other states and territories have been

included in Attachment B from slide 11 onwards.

Queensland

Queensland has seen the largest relative growth in the number of privately insured public

hospital separations out of any of the states. This data is illustrated on slide 4 of Attachment

B. Since 2007-08:

Private emergency separations have increased by 736%, compared with 50% for

public emergency separations.

Private elective separations have increased by 153%, compared with 24% for public

elective separations.

Private ‘other’ separations have increased by 345%, compared with 51% for public

‘other’ separations.

As demonstrated on slide 5, the total number of privately insured separations is still only a

small proportion of all public hospital separations in Queensland. However, when analysing

the growth in separations since 2007-08, slide 6 demonstrates that this growth has favoured

privately insured patients.

Of all additional separations compared with 2007-08 levels, privately funded activity

accounted for:

28% of new emergency separations;

22% of new elective separations; and

31% of new ‘other’ separations.

3

The funding split of new emergency separations in Queensland since 2007-08 has also been

illustrated on slide 7. While this graph demonstrates the significant shift towards privately

funded activity, it also demonstrates that this growth may have reached a saturation point.

This is perhaps due to hitting the ceiling on the number of privately-insured patients.

New South Wales

New South Wales has also seen significant growth in the number of privately insured

separations. This data is illustrated on slide 8.

Private emergency separations have increased by 99%, compared with 17% for public

emergency separations.

Private elective separations have increased by 59%, compared with 23% for public

elective separations.

Private ‘other’ separations have increased by 72%, compared with 27% for public

‘other’ separations.

As demonstrated on slide 9, the total number of privately insured separations is still only a

small proportion of all public hospital separations in New South Wales. However, when

analysing the growth in separations since 2007-08, slide 10 demonstrates that this growth has

favoured privately insured patients.

Of all additional separations compared with 2007-08 levels, privately funded activity

accounted for:

64% of new emergency separations;

27% of new elective separations; and

28% of new ‘other’ separations.

4

CODE 1 Urgency status assigned - emergency

Emergency admission:

The following guidelines may be used by health professionals, hospitals and health insurers in determining whether an emergency admission has occurred.

These guidelines should not be considered definitive.

An emergency admission occurs if one or more of the following clinical conditions are applicable such that the patient required admission within 24 hours.

Such a patient would be:

at risk of serious morbidity or mortality and requiring urgent assessment and/or resuscitation; or

suffering from suspected acute organ or system failure; or

suffering from an illness or injury where the viability or function of a body part or organ is acutely threatened; or

suffering from a drug overdose, toxic substance or toxin effect; or

experiencing severe psychiatric disturbance whereby the health of the patient or other people is at immediate risk; or

suffering severe pain where the viability or function of a body part or organ is suspected to be acutely threatened; or

suffering acute significant haemorrhage and requiring urgent assessment and treatment; or

suffering gynaecological or obstetric complications; or

suffering an acute condition which represents a significant threat to the patient's physical or psychological wellbeing; or

suffering a condition which represents a significant threat to public health.

If an admission meets the definition of emergency above, it is categorised as emergency, regardless of whether the admission occurred within 24 hours of such

a categorisation being made, or after 24 hours or more.

CODE 2 Urgency status assigned - Elective

Elective admissions:

If an admission meets the definition of elective above, it is categorised as elective, regardless of whether the admission actually occurred after 24 hours or

more, or it occurred within 24 hours. The distinguishing characteristic is that the admission could be delayed by at least 24 hours.

Scheduled admissions:

5

A patient who expects to have an elective admission will often have that admission scheduled in advance. Whether or not the admission has been scheduled

does not affect the categorisation of the admission as emergency or elective, which depends only on whether it meets the definitions above. That is, patients

both with and without a scheduled admission can be admitted on either an emergency or elective basis.

Admissions from elective surgery waiting lists:

Patients on waiting lists for elective surgery are assigned a Clinical urgency status which indicates the clinical assessment of the urgency with which a patient

requires elective hospital care. On admission, they will also be assigned an urgency of admission category, which may or may not be elective:

Patients who are removed from elective surgery waiting lists on admission as an elective patient for the procedure for which they were waiting (see

code 1 in metadata item Reason for removal from an elective surgery waiting list code N) will be assigned an Admission urgency status code N code of

2. In that case, their clinical urgency category could be regarded as further detail on how urgent their admission was.

Patients who are removed from elective surgery waiting lists on admission as an emergency patient for the procedure for which they were waiting (see

code 2 in metadata item Reason for removal from an elective surgery waiting list code N), will be assigned an Admission urgency status code N code

of 1.

CODE 3 Urgency status not assigned

Admissions for which an urgency status is usually not assigned are:

admissions for normal delivery (obstetric)

admissions which begin with the birth of the patient, or when it was intended that the birth occur in the hospital, commence shortly after the birth of

the patient

statistical admissions

planned readmissions for the patient to receive limited care or treatment for a current condition, for example dialysis or chemotherapy.

An urgency status can be assigned for admissions of the types listed above for which an urgency status is not usually assigned. For example, a patient who is to

have an obstetric admission may have one or more of the clinical conditions listed above and be admitted on an emergency basis.

CODE 9 Not known/not reported

This code is used when it is not known whether or not an urgency status has been assigned, or when an urgency status has been assigned but is not known.

6

PRIVATE HEALTH MINISTERIAL ADVISORY

COMMITTEE

Presentation – Public hospital separations by urgency

category and funding source

11 APRIL 2018

7

0%

20%

40%

60%

80%

100%

120%

140%

160%

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Gro

wth

ove

r 20

07-0

8

National - Growth since 2007-08 in public hospital separations by urgency category and funding source

Private emergency

Private other

Private elective

Public other

Public emergency

Public elective

1

8

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Sep

arat

ion

s

National public hospital separations by urgency category and funding source since 2007-08

Private other

Private elective

Private emergency

Public other

Public elective

Public emergency

2

9

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Private other 1% 1% 1% 1% 2% 2% 2% 2% 2%

Private elective 4% 4% 5% 5% 5% 5% 5% 5% 5%

Private emergency 4% 4% 4% 4% 5% 6% 7% 7% 7%

Public other 16% 16% 16% 16% 17% 16% 16% 16% 17%

Public elective 37% 38% 38% 37% 36% 36% 36% 35% 34%

Public emergency 37% 37% 36% 36% 36% 35% 35% 35% 35%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Pro

po

rtio

n o

f to

tal s

ep

arat

ion

s

National public hospital separations by urgency category and funding source since 2007-08

3

10

0%

100%

200%

300%

400%

500%

600%

700%

800%

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Gro

wth

ove

r 20

07-0

8

Growth since 2007-08 in public hospital seps by urgency category and funding source, Queensland

Private emergency

Private other

Private elective

Public emergency

Public other

Public elective

4

11

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

Sep

arat

ion

s

QLD - Public hospital separations by urgency category and funding source since 2007-08

Private other

Private elective

Private emergency

Public other

Public elective

Public emergency

5

12

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Emergency Elective Other

Pro

po

rtio

n o

f n

ew s

epar

atio

ns

sin

ce 2

007

-08

QLD - Growth in the number of separations since 2007-08 according to funding source

Private

Public

6

13

7

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

QLD - new emergency separations funding source since 2007-08 as a % of total

Private emergency

Public emergency

14

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Gro

wth

ove

r 20

07-0

8

NSW - Growth since 2007-08 in public hospital seps by urgency category and funding source

Private emergency

Private other

Private elective

Public other

Public elective

Public emergency

8

15

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2,000,000

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Sep

arat

ion

s

NSW - Public hospital separations by urgency category and funding source since 2007-08

Private other

Private elective

Private emergency

Public other

Public elective

Public emergency

9

16

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Emergency Elective Other

Pro

po

rtio

n o

f n

ew s

ep

arat

ion

s si

nce

200

7-0

8

NSW - Growth in the number of separations since 2007-08 according to funding source

Private

Public

10

17

11

-40.0%

-20.0%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

140.0%

160.0%

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Gro

wth

ove

r 20

07-0

8

VIC - Growth since 2007-08 in public hospital seps by urgency category and funding source

Private emergency

Private elective

Private other

Public elective

Public other

Public emergency

18

12

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Sep

arat

ion

s

VIC - Public hospital separations by urgency category and funding source since 2007-08

Private other

Private elective

Private emergency

Public other

Public elective

Public emergency

19

13

-40.0%

-20.0%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Gro

wth

ove

r 20

07-0

8

Growth since 2007-08 in public hospital seps by urgency category and funding source, WA

Private emergency

Public other

Private elective

Public emergency

Private other

Public elective

20

14

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Sep

arat

ion

s

WA - Public hospital separations by urgency category and funding source since 2007-08

Private other

Private elective

Private emergency

Public other

Public elective

Public emergency

21

15

-40.0%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16Gro

wth

ove

r 20

07-0

8

Growth since 2007-08 in public hospital seps by urgency category and funding source, SA

Private emergency

Public other

Public emergency

Private elective

Public elective

Private other

22

16

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Sep

arat

ion

s

South Australia - Public hospital separations by urgency category and funding source since 2007-08

Private other

Private elective

Private emergency

Public other

Public elective

Public emergency

23

17

-100.0%

-50.0%

0.0%

50.0%

100.0%

150.0%

200.0%

250.0%

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Gro

wth

ove

r 20

07-0

8

TAS - Growth since 2007-08 in public hospital separations by urgency category and funding source

Private elective

Private emergency

Public elective

Public emergency

Public other

Private other

24

18

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Sep

arat

ion

s

TAS - Public hospital separations by urgency category and funding source since 2007-08

Private other

Private elective

Private emergency

Public other

Public elective

Public emergency

25

19

-100.0%

0.0%

100.0%

200.0%

300.0%

400.0%

500.0%

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Gro

wth

ove

r 20

07-0

8

ACT - Growth since 2007-08 in public hospital separations by urgency category and funding source

Private other

Private elective

Private emergency

Public emergency

Public elective

Public other

26

20

0

20,000

40,000

60,000

80,000

100,000

120,000

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Sep

arat

ion

s

ACT - Public hospital separations by urgency category and funding source since 2007-08

Private other

Private elective

Private emergency

Public other

Public elective

Public emergency

27

21

-200.0%

0.0%

200.0%

400.0%

600.0%

800.0%

1000.0%

1200.0%

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Gro

wth

ove

r 20

07-0

8

NT - Growth since 2007-08 in public hospital separations by urgency category and funding source

Private emergency

Private elective

Public other

Private other

Public emergency

Public elective

28

22

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Sep

arat

ion

s

NT - Public hospital separations by urgency category and funding source since 2007-08

Private other

Private elective

Private emergency

Public other

Public elective

Public emergency