15 November 2008

Blood services no longer subsidised for private hospitals

Minister for Health, John Della Bosca, said today that NSW tax-payers would no longer subsidise blood services for private hospitals.

Mr Della Bosca said public hospitals were already being charged for the collection, processing and distribution of blood and blood products.

"The collection, processing and distribution of blood and blood products costs money - there's no reason private hospitals should get it for free when the public system has to pay for it," the Minister said.

"NSW tax-payers have to fork out about $8 million a year to cover the administration costs for these services in private hospitals.

"Some might describe it as a rort that private hospitals have been paying nothing while public hospitals have been charged for the collection, processing and distribution of blood and blood products.

"It's time private hospitals were treated the same way as public hospitals and this change is a fair way to manage the cost.

"There's no reason for NSW tax-payers to subsidise the private hospitals system when even public hospitals don't enjoy that benefit," Mr Della Bosca said.

"This decision evens out the playing field and is a fair and balanced approach.

"Under the Human Tissue Act it is illegal to charge for blood products and no patients in the private system will be billed for blood services such as transfusions.

"I have asked the Director General of NSW Health to consult the Red Cross and the Private Hospitals Association so this change can be successfully implemented.

"The current arrangements between NSW Health, the Australian Red Cross and the National Blood Authority remain unchanged.

"And importantly it has no impact on blood donors," the Minister said.

"In this year's budget, Health was allocated a record $13.2 billion. The mini-budget has not changed the health service's allocation.

"The Rees Government will continue to work hard to deliver the best possible health services to families across NSW," he added.

For a range of health information, go online to www.health.nsw.gov.au