Catholic Health Australia (CHA) is calling for urgent, coordinated reform to address hospital ‘bed block’, with new research revealing the number of days patients remained in hospital despite being medically ready for discharge into aged care has increased by 60 per cent over the past three years, at an estimated annual cost of $1.61 billion.
CHA says the issue extends beyond hospitals, with aged care, disability support and housing operating as separate systems that leave patients waiting when one part cannot provide appropriate care.
CHA Acting Chief Executive Officer Dr Katharine Bassett said thousands of Australians are occupying acute hospital beds simply because there is nowhere else for them to go, describing bed block as “a care economy problem” that requires urgent, system-wide reform rather than hospital-based solutions alone.
Among CHA’s key recommendations is the creation of a nationally funded pool of around 600 transition beds, providing short-term care for patients awaiting aged care or community support.
CHA is also calling for 150 hospital liaison officers and 150 discharge planners to coordinate patient transfers across hospitals, aged care, the NDIS and housing, building on the success of similar liaison roles introduced within the NDIS.
CHA argues that addressing shortages in aged care capacity is essential, advocating for funding to support new residential aged care facilities through a nationally consistent no-interest loan scheme, alongside 60,000 additional home care packages and 5000 new residential aged care beds each year.
Dr Bassett said increasing aged care capacity would not only improve care for older Australians but also free up hospital beds for patients who need acute treatment, benefiting the entire health system.
Private health sector reform
In associated news, CHA has welcomed the Federal Government’s first private health sector reform consultation paper, describing it as a significant step towards improving patient access and strengthening the viability of private hospitals.
The proposed reforms cover Hospital in the Home, maternity and mental health services, regional hospital access, and measures to simplify private health insurance and improve value for consumers.
Dr Bassett said the reforms address long-standing concerns raised by both patients and hospitals. She also praised the Government’s consultation process through the CEO Forum, saying it demonstrated a willingness to act rather than continue prolonged reviews.
The reforms come as the private hospital sector faces mounting financial pressure, with more than 90 private hospital services closing in the past five years and hospitals collectively recording a $756 million operating loss in 2024-25, while private health insurers reported $2.7 billion in profits.
Dr Bassett said reforms such as minimum funding for Hospital in the Home, greater support for regional hospitals, and more sustainable maternity and mental health funding are essential to preserving access to care.
She urged the Government to implement the proposed reforms in time for the 2027 premium round, warning that further delays would place more hospital services and patient access at risk.