This
appeared a few days ago:
The mental health crisis gripping Australia’s private hospitals
Some health insurers say stand-alone mental health hospitals
are unlikely to exist in 10 years’ time given the challenges they face.
Empty mental health wards are at the heart of the financial
challenges facing the struggling $22 billion sector. Robert Duong
Jemima
Whyte and Michael
Smith
Oct 25, 2024 – 9.48am
Psychiatrist Angelo Virgona is grappling with a paradox in
the Australian health system.
Demand for mental health treatment is at a record high. It
is the top reason for patients to visit a GP and is the top reason for people
aged under 60 to end up in hospital, insurance data shows. Staff at public
hospital emergency wards say they are overwhelmed with cases.
But Virgona says, despite the mental health crisis in
Australia, particularly among younger people, private hospital psychiatric
wards are empty. He says they have been forced to turn patients away for years
because they cannot find the staff willing to work on the wards.
Now, Virgona, who is a director of the Royal Australian and
New Zealand College of Psychiatrists and has run rural and city clinics, says
no one even calls him any more looking for mental health admissions in private
hospitals because they know it’s an impossible task.
“People just give up on ringing you up for admissions, we
don’t have a doctor who can admit you,” he says. This means the psychiatric
wards in private hospitals are sitting empty, leaving Virgona to question how
long hospitals can keep the wards open.
“We don’t have enough psychiatrists who want to work in the
private hospital system now,” he says.
Empty mental health wards are at the heart of the financial
challenges facing the struggling $22 billion private hospital sector, which is
the subject of an Albanese government review. The private hospital health
check, ordered by Health Minister Mark Butler in June, which collated data from
hundreds of hospitals around the country has been completed, but it has not
been made public.
However, a summary of the findings
from the Department of Health review obtained by The Australian
Financial Review singled out declining mental health and maternity services
as two key problems for the nation’s 650 private hospitals. While the data on
maternity makes sense given the decline in the nation’s birth rate, the
opposite is true for mental health.
Soaring healthcare costs are shaping up as a key headache
for the Albanese government ahead of the next election. The latest The
Australian Financial Review/Freshwater Strategy poll shows health was the
third-highest rated concern, with 27 per cent saying it should be a focus for
the government. Insurers are also preparing to ask for a
big hike in premiums from April next year.
While rising demand for healthcare as the population ages is
putting a strain on all parts of the system, the surge in mental health is the
area most concerning medical practitioners.
Demand for treatment has never been higher, but wards are
closing because psychiatrists do not want to work there. They earn more by
treating patients in their own clinics or online. They also blame insufficient
rebates from private health insurers.
The Albanese government says more than 3000 lives are lost
to suicide each year with demand for treatment higher than ever. Mental illness
is also topping private health insurance claims and was the main reason people
under 60 spent time in hospital last year, industry data shows.
Beds but no staff
Private hospital operators such as Ramsay
Health Care and Brookfield-owned Healthscope say they have the facilities
to treat patients but not the staff.
“The maximum hourly earning capacity of psychiatrists
treating outpatient and low complexity patients is much greater than those
psychiatrists treating the most acute and high-risk patients admitted to
hospitals,” says Carmel Monaghan, the head of Ramsay Health Care’s Australian
private hospital network, which is the largest in the country.
She says there are patients who are “unable to access the
necessary care or languishing in emergency departments and medical wards”
because psychiatrists are financially incentivised to assess and treat patients
as outpatients, especially for enrolment in the National Disability Insurance
Scheme (NDIS).
Treating hospital patients, who are usually admitted for at
least 21 days, is also harder work. The psychiatrists in those cases are on
call 24 hours a day, seven days a week.
“Psychiatrists appear financially incentivised to favour
telehealth and rooms-based work over work in hospital-based settings,” the
preliminary findings of the Butler review says. It also says doctors have
“limited ability” to charge out-of-pocket fees in hospitals, which was also
driving them away.
Department of Health data shows the number of people
receiving Medicare-subsidised psychiatric sessions has increased 18.9 per cent
from 2019 to 2022. But over the same period, the number of services delivered
in private hospitals has fallen 15 per cent.
Pay disparity
Virgona says he earns up to 30 per cent more in his own
rooms than when he works at a private hospital.
In the hospital, the doctors aren’t paid for time spent
travelling to and from hospitals, talking to nurses, a patient’s family or for
taking calls in the middle of the night.
“It’s the worst remunerated role in all of psychiatry. As an
in-patient, it’s almost uneconomical,” he says. “But it’s also wonderful,
challenging work, providing continuity of care to people in ways not seen in
other parts of the mental health sector.”
Many in the industry believe staffing is not the only
problem, but that it is time to rethink the old model of care centred around
long hospital stays. More people are being treated online or at home.
Patrick McGorry, a former Australian of the Year and mental
health expert says home-based care can be managed safely with teams of experts
visiting patients two or three times a week, making it a less traumatic
experience than staying in hospital.
“You end up getting things like medication reviews which
could easily be done on an outpatient basis if there was better infrastructure
between the isolated private psychiatrist and the hospital, like a team-based
community mental health model. Maybe the insurers and the hospitals need to be
wrangled by the government around that,” McGorry says.
Private health insurers, which fund the hospitals, also
argue the old model is flawed, with one executive saying there is no future for
stand-alone medical facilities. In February, the 75-bed Bethesda mental health
facility in Perth shut down after a year of operation. The West Australian
government took over the lease.
“We will always need hospitals for people experiencing
severe illness and those needing medical support to detox from alcohol and
other drugs,” says Rachel David, the chief executive of Private Healthcare
Australia, which represents the major health insurers.
“But the evidence is increasingly showing that people
recovering from alcohol and drug addiction do better if they receive ongoing
treatment at home and in the community so they can continue to live a
productive life and overcome environmental triggers for their condition.”
“For these reasons, stand-alone mental health hospitals are
unlikely to exist in 10 years’ time,” she says.
The insurance question
Australian Institute of Health and Welfare data shows health
insurance funded 54 per cent of all mental health hospital admissions in
2022-23.
Mental health hospital admissions are expensive for health
funds because the average length of stay is 27 days, which means admissions can
cost more than $10,000.
Ramsay says both mental health and maternity are only
included by health funds in gold cover policies which are increasingly
unaffordable for young people who are the largest users of these services.
However, insurers dispute this saying a government mental
health waiver means a person with basic cover can be upgraded to gold cover if
they are admitted to a mental health facility where they will be covered during
their stay.
An annual survey released by the Royal Australian College of
GPs (RACGP) showed a sharp rise in the number of patients seeing a GP with
mental health concerns. About 71 per cent of GPs report mental health as the
top reason for patient consults, up from 61 per cent when the survey started in
2017.
“GPs from across Australia have told us that they’re seeing
more patients with multiple, complex health issues including mental health, and
that many can’t afford to see specialists or allied health professionals
privately,” RACGP president Nicole Higgins says.
“After decades of underfunding and the Medicare freeze, we
need meaningful investment in patients’ rebates to make essential healthcare
affordable for all Australians. With the current cost-of-living crisis, this is
more important than ever,” she says.
Some healthcare providers are looking at new models that
combine hospital care with more out-patient services.
IMH Deakin Private Hospital is a joint venture between
insurer Medibank and Aurora Healthcare that has a model of shorter stays, 14
days instead of 21 days, for young people seeking mental health treatment.
Anna Smith, the hospital group’s director of clinical
services, says the model which seeks to get people home sooner and into
out-reach programs has led to reduced readmissions.
As the private sector is forced to close down unprofitable
operations and reassess the way it treats one of the country’s fastest-growing
illnesses, many believe home and online care is the way forward although some
GPs are concerned as patients still need supervision and the experts to help
them remain in short supply.
Here is the
link:
https://www.afr.com/companies/healthcare-and-fitness/the-mental-health-crisis-gripping-australia-s-private-hospitals-20240906-p5k8hp
I have to
say this all paints the picture of a system that is on the edge and is struggling
to meet the demand it is faced with while knowing there is a a large backlog of
unmet need.
This is
surely not a stable and satisfactory situation – and so it seems likely we will
see problems break out all over in the next few years.
I wonder
what solutions will emerge. We sure need some smart thinking to bolster this
aspect of the system! Right now it all sounds petty grim!
Any clever
ideas?
David.