Patients don't know where to turn as pioneering psychiatric hospital gets set to close | 7.30

Summary of Tong Private Hospital Closure

Key Concepts:

• PTSD treatment for veterans and first responders
• Private hospital viability and funding
• Government rebates for psychiatric services
• Private health insurer payments to hospitals
• Impact of hospital closures on patient care and public health system
• Mental health service accessibility

1. Tong Private Hospital Closure:

• Tong Private Hospital, a family-owned facility operating for nearly 5 decades, is closing due to financial difficulties after failing to find a buyer and entering voluntary administration. The hospital will close imminently.
• The closure will impact approximately 3,000 patients annually.
• The hospital is described as unique due to its ability to be "nimble" and introduce advances in mental health treatment, particularly for PTSD.

2. Impact on Veterans and First Responders (Kane Chambers' Experience):

• Kane Chambers, a veteran who served 13 years in the army, received treatment for PTSD at Tong Private Hospital after an incident during training.
• He participated in a 12-week outpatient program and returned for further treatment after a relapse.
• Chambers credits Tong with significantly improving his mental health and overall well-being, stating he is now a "much happier person."
• He expresses concern that the support he received will no longer be available.

3. Financial Challenges and Underfunding:

• Dr. Joshua Geffen, a psychiatrist at Tong for 25 years, attributes the closure to limited government rebates for psychiatrists working in hospitals.
• He argues that the current system places financial stress on patients by requiring them to pay large out-of-pocket expenses for treatment.
• The CEO of the Private Hospitals Association states that Tong has been "crippled" by the soaring cost of providing treatment and the refusal of private health insurers to pay market rates.
• The Private Hospitals Association claims that eight other hospitals are at "imminent risk" of closing.

4. Dispute with Private Health Insurers:

• The Private Hospitals Association accuses private health insurers of "rapacious profiteering," claiming they have made record profits while shortchanging private hospitals by over a billion dollars a year. Management fees have increased by 18%.
• They allege that one major insurer refused to renegotiate with Tong for 13 months, leaving the hospital on outdated rates, and another refused to contract with the hospital at all.
• Health insurers refute these claims, stating that payments to hospitals have increased by 8% over the last 12 months, which is "well above inflation" and has followed health inflation for the last 10 years.
• The closure follows the demise of Health Scope, which runs 37 facilities across the country, which went into receivership last month. Health Scope's management cited underfunding by private health insurers as one of the main causes for collapse.

5. Government Response:

• The Prime Minister stated that the Health Minister is "looking into" the issue and that health insurers "need to pay additional money" for private healthcare.
• The Health Minister stated he had called for insurers to urgently increase payments for hospital services and will assess regulatory actions.

6. Impact on Patients (Kerry Xernia's Experience):

• Kerry Xernia, a patient at Tong for 30 years, expresses worry and anxiety about the closure and the availability of alternative care.
• She believes the care she needs is not readily available in the public system, stating that one has to be "really unwell" to access public health services.

7. Impact on Public Health System:

• The closure of Tong, resulting in the loss of 58 beds, is expected to have a "major impact" on the public health system.
• Concerns are raised about the capacity of public hospital emergency departments and psychiatric units to absorb the influx of patients.
• The State Health Minister downplays the impact on Queensland Health, stating that Tong primarily treats "less acute" patients, while Queensland Health handles "more complex and more difficult cases."

8. Conclusion:

• The closure of Tong Private Hospital highlights the financial pressures facing private hospitals, particularly those providing mental health services.
• The dispute between hospitals and private health insurers raises concerns about the sustainability of the private healthcare system and its impact on patient access to care.
• The closure is expected to place additional strain on the public health system, potentially affecting the quality and accessibility of mental health services.
• The experiences of patients like Kane Chambers and Kerry Xernia underscore the importance of specialized mental health care and the potential consequences of its loss.