Private hospitals 'hide' from Senate probe

Private hospitals are accused of ignoring requests to front a Senate inquiry, prompting threats of a summons to appear for one of Australia's richest bosses.

One of Australia's highest paid bosses is being threatened with a summons to appear as private hospitals ignore requests to front a Senate inquiry into rising health costs.

Senior Labor figure Sam Dastyari has gone on the attack in a Facebook video warning Chris Rex, the head of Australia's largest private hospital operator Ramsay Health Care, to stop hiding.

"The average wage of $45,000 a year is what this bloke gets paid every single day," Senator Dastyari said.

"Taxpayers provide $6 billion for private health insurance rebates that goes to private health insurers and ends up in a handful of private health companies like the one run by Mr Rex.

"While costs have skyrocketed and services have plummeted, there are legitimate questions about how it's appropriate that people like Mr Rex have been giving themselves 20 per cent pay rises and bragging about just how profitable their business is."

A Senate inquiry is looking into rules that make medical devices like pacemakers more expensive in the private system than the public system - often blamed by private health insurers as a reason for higher premiums.

The committee has made multiple attempts to contact Ramsay to appear at public hearings scheduled for Wednesday and Thursday in Canberra but there was no response.

It had also asked private hospital operator Healthscope and the Australian Private Hospitals Association to appear but with no luck.

Senator Dastyari has received advice from the Senate that the committee can require their appearance by issuing a summons or subpoena.

Ramsay in February said it lifted its first-half net profit 13.8 per cent to $255.9 million, helped by growth in admissions to its hospitals and medical centres.

It said revenue was up 3.4 per cent to $4.3 billion and also announced that Mr Rex will retire this year.

Ramsay and Healthscope declined to comment.

The Australian Private Hospitals Association has been contacted for comment.


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Source: AAP



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