Buying up hospitals for service ‘not Govt policy’

Press, 10 March 1987, Page 3

Buying up hospitals for service ‘not Govt policy’

By

PETER LUKE

in Wellington

Buying up private hospitals to form a combined national hospital service is not Government policy, said the Prime Minister, Mr Lange, yesterday. The idea of a combined hospital service was raised at the week-end by the Minister of Internal Affairs, Mr Tapsell, who said that private hospitals should be bought by the Government. Those that wanted to remain independent could do so, but would receive no Government subsidies. Asked if he agreed with Mr Tapsell’s suggestion, Mr Lange said: "No, nor does the Government.” Mr Tapsell, a surgeon

with 27 years experience, had made it clear that his remarks represented personal opinion, not Government policy. At present the Government had no firm policy on the future organisation of private and public hospitals, said a spokesman for the Minister of Health, Dr Bassett Dr Bassett had recently formed a task force to review hospital administration. Questions raised by Mr Tapsell, including the relationship of private and public hospitals, and the way doctors were employed, would be examined by the task force. A copy of Mr Tapsell’s speech had been sent to the task force. Dr Bassett had been interested in his

fellow Minister’s comments, which were at one end of a range of views on hospital organisation. The executive officer of the Private Hospitals’ Association, Mr Tim Burns, said yesterday that he could see little merit in Mr Tapsell’s suggestions. They would tend to lengthen hospital waiting lists, rather than reduce them as Mr Tapsell had claimed. Operatiions now performed in the private sector — 27 per cent of all operations — would still need to be done, Mr Bums said. He suggested that private hospitals were more flexible than public hospitals, and that patients occupied private beds for less time.

The financial cost to the Government would also be considerable, as the total cost of private surgery would have to be picked up. At present the Government paid a patient benefit of 10 per cent of the cost of surgical cases. The Opposition spokesman on health, Mr Paul East, said that Mr Tapsell’s speech was further evidence that many Labour members of Parliiament were philosphically opposed to private health care. “National holds the view that a strong private health sector will reduce the load on public hospitals and allow them to improve’ the service they provide,” he said.