10 December 2009 
 
The Australian Healthcare and Hospitals Association (AHHA) today expressed 
disappointment that the Productivity Commission's final report on public and private 
hospitals, released today, contains some serious data gaps.   
 
"AHHA welcomes the finding of the Productivity Commission that public hospitals are 
performing efficiently and delivering good value to the community, Ms Prue Power, 
AHHA Executive Director said today. 
 
"However, we are concerned that the final report has not addressed some significant 
data gaps, identified by AHHA in the draft report, which prevent a more meaningful 
comparison of public and private hospitals.  
 
"For example, the cost of medicines cannot be compared between the two sectors when 
PBS costs in private hospitals are not included. This is a glaring omission which 
undermines the credibility of the report in this area. 
"We are also disappointed that the Commission did not include the cost of allied health 
care in the study. This represents a significant component of the cost of hospital care, in 
particular for people with chronic conditions. The cost of capital has also not been dealt 
with in a comparable way across the sectors making comparisons in this area virtually. 
impossible.  
"In addition to this, the Report does not include the cost involved in carrying out 
teaching responsibilities in public hospitals. This is a serious omission as public hospitals 
dedicate considerable resources to the important task of training the next generation of 
the Australian health care workforce.  
"Finally, AHHA notes that the inclusion of public hospitals in remote and very remote 
areas adds to the average cost of public hospital care, due to the higher cost of 
providing care in these areas. AHHA believes that these hospitals should have been 
omitted from comparative cost calculations given that there are no private hospitals in 
these areas.   
"However, AHHA welcomes the Commission's recommendation to move towards a more 
robust and nationally-consistent data collection on hospital-acquired infections, such as 
including private hospitals in national reporting arrangements. 
 
"This will enable future reports to provide a more meaningful comparison between 
sectors and give governments, policy makers and the Australian community robust 
information about their hospital system, Ms Power said. 
 
For further information/comment:  
Ms Prue Power 0417 419 857 
 
 
   
Data gaps mar 
hospitals report