St John of God Hospital Ballarat is warning that patients could be thousands of dollars out of pocket for some surgeries after a federal government decision to change the way medical devices, including basics like sutures and skin glues, are funded.
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The hospital, and other private hospitals around the country, fear they might have to cut services or pass increased costs on to patients to cover the shortfall.
From July 1, the government will drop the requirement for health insurers to pay for a list of around 500 'general use' items used during and after surgery including feeding tubes, gauze, catheters, staples, sutures and skin glues.
Breast cancer surgery, caesareans, gynaecological operations and bariatric surgery typically use large numbers of these devices meaning the cost of these operations could increase thousands of dollars if the general items are no longer covered by health funds.
What could we expect?
St John of God Ballarat chief executive Maria Noonan said the shortfall would be significant if hospitals were to absorb the cost.
"We end up with the kind of problem where cost becomes an issue and provision of services becomes an issue," she said.
"Everything we use for patients costs a fortune ... and rightly so as it takes a lot of money to produce all these things we use for our patients and we are very lucky in this country to have access to that.
"We have to be able to address that on-cost for us and how it affects us ... what is viable."
"We have two options - we either look at not performing certain surgeries or we pass the costs on to the patient."
Some surgeries could increase in cost up to $4000.
How could it impact your hip pocket?
The move comes as private health insurers were this month given approval to increase premiums by more than three per cent, the biggest increase in five years, which will come in to effect from April.
Increasing out of pocket costs could also force some patients on to already crowded public hospital elective surgery waiting lists.
Ms Noonan said the decision would impact women and regional patients disproportionally and called for the federal government to rethink the change.
More than 70 per cent of surgeries impacted by this change are performed on women, and patients in regional areas would have few other options for private treatment if they could not afford the increase.
"As a health service we want the government to be really discerning about the impact, particularly for regional patients who don't have the option ... and who will be impacted if we can't provide those services."
What does Catholic Health Australia think?
Catholic Health Australia chief executive Jason Kara said it was unrealistic to expect private hospitals to "nut out" contracting agreements with more than 30 insurers by July 1.
"The looming changes will particularly impact on women and patients in regional areas where populations are lower and hospitals are less able to absorb extra costs," Mr Kara said.
"The government should step in here to require insurers to fund these items. We are confident a solution can be reached that maintains access for patients and avoids unintended consequences."
The Department of Health and Aged Care was contacted for comment.
