14 February 2025

ACT wants to reverse the flow of NSW patients as health demands threaten to overwhelm government

| Ian Bushnell
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Canberra Hospital building entrance

Canberra Hospital is the nearest tertiary hospital for the surrounding region. Photo: Michelle Kroll.

The cash-strapped ACT health system may not be rationing cross-border patients, but it is working to “reverse the flow”, claiming that what NSW pays the Territory does not cover the full cost of treating its residents.

The ACT has denied allegations that it is turning away NSW referrals and cutting them from waiting lists, but a South Coast doctor says dealing with the ACT has become increasingly opaque, and public patients with non-emergency conditions face interminable waits for a referral to be processed.

The result is that they may never actually be treated in the ACT.

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All referrals now have to be made electronically through the HealthLink platform, which the doctor said was a good system, but that didn’t mean referrals were actually being actioned.

“It’s a very opaque process,” the doctor said. “Sometimes you get a letter back saying they’ve been accepted and then they just never get an appointment.

“And the timing and the triaging just seems ad hoc. Some of them just never get called, or they just get bumped, year after year, waiting for joint replacements and things.

“If you go into bat for them and spend time and effort ringing people, you can get people moved up the waiting list, but it’s not a seamless process.”

The doctor said Canberra Hospital was the nearest tertiary hospital and the NSW health districts had their own issues with constraining costs and localising treatments.

Doctors were also set in the referral patterns based on their connections and relationships, and for many, Wollongong or Sydney would not be in their orbit.

The doctor added that claims that the ACT’s blowout in health costs was unexpected did not wash, given the known needs of an ageing population.

The ACT has had to tip $227 million more into the health budget to deal with an ‘unanticipated’ surge in demand, setting off a chain reaction of belt-tightening across the rest of the government.

The ACT Government spokesperson said NSW residents were not refused services, but Canberra Health Services was working closely with the surrounding NSW region to reverse the flow of patients where appropriate and determine if the service was available closer to home.

The ACT expected the new Eurobodalla Regional Hospital under construction in Moruya to eventually take more of the load.

The spokesperson said people were not being removed from Canberra waiting lists solely because they lived in NSW, but it was likely that some NSW residents would be removed as part of a broader piece of work to review waiting lists across specialties.

NSW residents made up, on average, approximately one in four of the services delivered in ACT public hospitals, but the funding provided by NSW under the cross-border agreement did not recognise the full cost of service delivery, the spokesperson said.

“This includes costs such as capital and recognition of the higher costs faced by smaller jurisdictions, which lack economies of scale,” the spokesperson said.

Most of the NSW patients come from the greater Queanbeyan area.

In the most recent year reconciled, the ACT Government received $121.8 million from the NSW Government for NSW residents receiving care in the ACT while paying NSW $24.5 million for ACT residents treated there, meaning a net amount from NSW of $97.3 million.

The current agreement expires this year and the ACT and NSW are due to commence renegotiating it, with the ACT to seek more money to cover rising costs.

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A NSW Health spokesperson said NSW paid the cost of care for all NSW residents treated in ACT, in accordance with the NSW-ACT Cross Border Agreement.

This contribution was calculated using the National Efficient Price, which is set by the Independent Health and Aged Care Pricing Authority, and actual activity.

The ACT spokesperson said the recent draft NEP determination by IHACPA is costed at $7262 per national weighted activity unit or average service for 2025-26.

“After the application of back-casting, this is an increase of 5.6 per cent from the NEP for 2024-25. However, the raw year-on-year increase was estimated to be closer to 12 per cent,” the spokesperson said.

A NSW Health spokesperson said the ACT Health Directorate engaged at several levels to support health services for ACT and southern NSW residents.

ACT residents also benefited from receiving care in NSW when they needed it, including specialist services that were not available in ACT.

“In addition, NSW clinicians work in collaboration with ACT clinicians to provide support to benefit patients, particularly at the Sydney Children’s Hospital Network,” the spokesperson said.

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Just remove it as a territory and fold in into NSW already

HiddenDragon8:23 pm 14 Feb 25

“…….recognition of the higher costs faced by smaller jurisdictions, which lack economies of scale,” the spokesperson said.”

That fact of life which, of course, applies to all of the state-level services delivered by the ACT government, and the tendency for also-rans to end up in positions of authority in the ACT, goes a long way towards explaining the over-priced mediocrity of too much of what the ACT government does.

Even if (good luck with that) NSW can be pestered and cajoled into paying what the ACT thinks it should get for the net cost of cross border health services there would still be a sizeable black hole in ACT finances.

ChrisinTurner2:35 pm 14 Feb 25

Surely putting money into the ACT halth system is more important than a tram for developers.

The tram only costs 0.8% of the act budget, about $59 million each year. But health costs several billions every year.

59 million a year for the next thousand years, maybe. And that doesn’t account for the massive loss on running costs. But hey, we should totally waste money on vanity projects when they can’t even afford to fund the health system adequately.

Robauz, please don’t regurgitate government spin. The annual availability payments may be at $59m p.a. at the moment, but over the 20 years we committed to paying the private partners a total of $1.78bn, or an average of $89m p.a. On top of that were the never separately disclosed initial works, and an increasing amount of interest each year as the entire amount has been borrowed. Once construction was completed we paid a $300m lump sum, so there has to be another $15m+ each year in interest on that alone. The full cost would be closer to $120m p.a., or about the entire annual subsidy for the ACT bus system prior to stage 1. In broad terms, stage 1 carries about 1/5th of public transport users, but is costing as much as the bus network used to in its entirety. The trunk route replaced by stage 1 would have also been one of the more profitable for the bus system. We’re probably still pumping in that $120m p.a. into the bus system.

With the cost of stage 2A set to almost match stage 1, we’ll be looking at $200m+ p.a. just for a single public transport line running north from the lake. Construction costs for stage 2B are slated to be 5+ times as much as stage 1 ($4b vs $700m) so if it goes ahead, we could easily be looking at $500m+ p.a. for light rail plus the bus subsidy. If it’s not stopped, at some point in the future, the ACT’s light rail plan will be an economics and town planning study in how to bankrupt a city by delivering a public transport system that delivers slower public transport for most of the users. On that point, everyone living in outer Gungahlin who used to get an express bus straight to the city now get funneled through LR, resulting in slower journeys and the governments own figures show the LR journey time between Woden and the city would almost double under LR stage 2.

So predictable. No matter what the topic someone will find a way to link it to light rail.

Ahhh, the clowns have found a scapegoat. Not their constant irresponsible spending and financial management capability of a 6 year old in a toy store with a $50 note. No, it’s NSW who are to blame. 🤣

I have not had problems getting in at this point in time. I live in Queanbeyan and have seen a heart specialist and a Neurologist at the hospital in the last 3 months. All at the hospital and waiting for surgery now.

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