Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — 14th Annual National Health Summit 2004
17 slides from Ramsay Health Care's conference presentation, Oct 26, 2004
Slide 1: The Prescription for a Strong Australian Healthcare System
RAMSAY HEALTH CARE The Prescription for a Strong Australian Healthcare System The Balance between Public and Private Patrick Grier Managing Director
Slide 2: Population, private health insurance and admissions
A Pee ey opulation 8.8 million with PHI 1/3 private hospitals 2.3 million private . admissions = ‘A OE a ee
Slide 3: To Meet the Challenge of Cost Increases & Consumer Expectations
To Meet the Challenge of Cost RAMSAY Increases & Consumer Expectations HEALTH « Bipartisan Support for the Balanced Healthcare System Coalition - 30% Rebate - Life Time Cover - Increased rebate for + 65yr olds. Labor - 30% Rebate - Medicare Gold - expanded role for private hospitals
Slide 4: Persons Covered by Health Insurance
Persons Covered by Health Insurance Source: PHIAC, AHIA Estimates 8,800,000 8,000,000 7,200,000 6,400,000 5,600,000 4,800,000 4,000,000 3,200,000 LHC in Force 30% Rebate introduced After 30% Rebate & Lifetime Health Cover ACTUAL Trend Before Means Tested Incentive ] a a | T T T Dec-96 Jun-97 Dec-97
Slide 5: The Growing Role of the Private Sector
The Growing Role of the Private RAMSAY Sector » 32% of all hospital beds » Treat 4 out of every 10 patients « Private Hospitals perform 56% of surgery « Fulltime staff have more than doubled * Capital investment growing at approximately 5% every year
Slide 6: Reducing the Pressure on the Public Sector
os Reducing the Pressure on the RAMSAY Public Sector In the 4 years prior to 2004 » Private hospital admissions up 37% *» Public hospital admissions up 6% In 2003 public hospital admissions were up 2.4% But 50% of these were private patients
Slide 7: Funding Model
Funding Model Public hospitals admit approx 4 m patients receive $15.2 bn of taxpayer funds Private hospitals admit approx 2.4 m patients receive $1.6 bn of taxpayer funds Estimate private hospital procedures would cost the public hospitals $4.5 bn The model is based upon encouraging user pays
Slide 8: Public Hospital Beds per 1,000 Uninsured
Public Hospital Beds per 1,000 Uninsured Effect of 30% Rebate & its Removal Data Source: AIHW, ABS, PHIAC, TQA, AHIA Estimates 6.0 55 Based on TQA Research if ‘ 30% Rebate Removed 5.0 4 4.5 4 4.0 4 \ 3.5 4 ; 50 | | a N oO Tt w oO Led eo fo) Q = N o Tt @ @ @ S$ @ 2 S@ @2& F< F< Ff GF g rr N o) tT w)
Slide 9: Membership has gone from 30% to 45%
Membership has gone from 30% to 45% and only dropped to 43% despite 3 years of average 7.5% premium increases Actual numbers have remained static If the Rebate is dropped it is estimated health insurance premiums would increase by approx 45%
Slide 10: Some Myths about the Private Sector
Some Myths about the Private Sector “Private Hospitals only treat minor procedures” » Of the total 654 different procedures performed in Australian - Private hospitals perform 647 w» Exceptions include liver, organ, heart and lung transplants « At the last count private hospitals treated over 500,00
Slide 11: Private Hospitals – Increasing Levels of Sophistication
Y x © shad the o a=) = 3 = c ) 2 iS = a. 7] fe) x Y ed © 2 hea a. dures oO © ) des a. thes ) £ = B 1994/92 20012 Data Source: Australian Bureau of Statistics Private Hospitals — Increasing Levels of Sophistication wey onENEQeYyaY ylug ABojoaug ————— Ss : Pasay drayenys As aajuaZ Sis A[eig, [Udy sau
Slide 12: Some Myths about the Private Sector
Some Myths about the Private Sector “Health Insurance is only for the rich” = More Australians on low incomes have health insurance than those on high incomes « 1.8 million on incomes less that $35,000 are privately insured. » A consumer driven reform
Slide 13: Income of Families with PHI
Income of Families with PHI June 1998, ABS 1200 1000 800 600 400 <$20,000 $20,000- $35,000- $50,000- $70,000- $100,000+ $34,999 $49,999 $69,999 $99,999
Slide 14: The NHS of the UK
The NHS of the UK In a recent poll 69% believe government is not delivering an improved health system It is a system in crisis — Blair intends lifting expenditure from 7.7% to 9% of GDP Since 1995 - Senior managers increased by - General management increased by - While qualified nurses increased by
Slide 15: Blair's solution - increase participation by the private sector
Blair’s solution - increase participation by the private sector Private Finance Initiatives (PFIs) “Concordat” between public and private hospitals in UK and abroad a From 2000 - 2003 private hospitals treated 250,000 NHS funded patients per year Independent Treatment Centres (IPSs) a Stand alone pr
Slide 16: The Way Forward
The Way Forward Learn from the experiences of other OECD countries Continue to grow the private sector - Aim to have 50/50 balance Drive cost efficiencies - Including cost of technology Pay for quality performance -— differentiation of private hospitals Greater partnership between public and private
Slide 17: Ramsay Health Care
RAMSAY HEALTH CARE The Prescription for a Strong Australian Healthcare System The Balance between Public and Private Patrick Grier Managing Director
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