In 1992, Health Care of Australia, an international hospital corporation, was contracted by the NSW Government to construct and manage a new, hi-tech, privately owned, 161 bed 'public' hospital. (In other words, a private hospital which contracts with the Government to supply public hospital services). This was the Pt Macquarie Base Hospital, situated on the east coast of Australia almost
... [Show full abstract] half-way between Sydney and Brisbane. With this privatisation strategy, the NSW Government expected to save $46 million over 20 years. The proposed privatisation of Pt Macquarie's hospital services brought union and community consternation, but the privatisation continued nevertheless. This case study of the privatisation of the hospital uncovers the real costs of the venture and the way the costs of private services are subsequently distributed between users, owners and tax-payers. In the light of these findings, the paper offers an insight into why governments privatise health services.
