Private hospitals finding difficulty

Press, 6 February 1986, Page 19

Private hospitals finding difficulty

PA Wellington Private hospitals and many of their patients are finding it difficult to cope with the effects of wage increases, the executive officer of the New Zea- - land Private Hospitals’ Association, Mr Tim Burns, said. Mr Bums said that for most staff, private hospitals had no option but to follow the wage increases

granted to public hospitals staff. The main group of staff in private hospitals were nurses and hospital aides employed under the Nurses’ Award. The increases they had received, which followed the percentage movements in the public sector, had increased the cost of nurses’ wages by up to 30 per cent, he said. “When nurses’ wages represent about 60 per cent of total costs, this inevitably has a major impact on the hospitals’ fees,” said Mr Burns. He said that as there had been no improvement in the daily patient benefits, the full increases had to be made on that portion of the fees charged direct to the patients. “While some who receive additional assistance through such schemes as the Geriatric Hospital Assistance Scheme may not be adversely affected, other patients will have to meet the higher fee themselves.” There were long-term patients who would not be able to meet the higher fees, he said.

If there was no increase in the daily patient benefits or other special assistance, these fees would have to be subsidised by the private hospitals caring for them — or they would have to be transferred to other, possibly public, care. Surgical patients, a high proportion of whom did not use medical insurance, might also have difficulty in meeting the higher fee levels.

Mr Bums said that the surgical patient benefits had declined markedly in value in recent years to a stage where it was now only about one-fifth of the average cost per patient day.

That benefit and one for short-stay medical patients had not increased since 1981 and the remaining benefits, including the geriatric, had not been increased since 1984.

Mr Bums said he was in full agreement with the Minister of Health, Dr Bassett, when he said the public health system could not afford more big wage increases this year.