The national president of the Doctors Reform Society today applauded and supported South Australian Human Services Minister, Mr Dean Brown on his call for the private health insurance subsidy to be scrapped.

Dr Davoren commented "It is no surprise this 30% subsidy from the public purse to the private health insurance industry has done nothing to alleviate the demand on our public hospitals. The DRS predicted the subsidy would fail to deliver improvements in access to health care and we are being proved correct. Not only is the it dragging almost $3 billion annually away from public hospitals, it is forcing up the cost of health care for the individual and the country."

'A recent study published in the Medical Journal of Australia indicated that the cost to the public purse of treating patients with heart disease in a private hospital was greater than if they had been treated as public patients" said Dr Davoren.

"The cost of the 30% private health insurance subsidy is greater than the annual government assistance to the mining, manufacturing and primary agricultural industries combined. Health dollars should be used for health, not to line the pockets of big business. All of us, whether rich or poor will need a public hospital at a critical time in our lives" said Dr Davoren.

For further information:

Dr Peter Davoren
Dr Con Costa

20 Feb 2001

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