Covid and medical inflation push up private patient costs

Tuesday 15 August 2023

Private patients are set to see a 6% rise in their fees from next month to account for "the impact of covid-19 on workflow", as well as "the underlying higher rate of medical inflation".

Since the year 2000, the maximum annual fee increase for private patients accessing services provided by the Health Department has been fixed at 2.5% – and exceptions are allowed in "extremely compelling cases only".

However, Health Minister Karen Wilson has now signed off on a 6% rise.

A report outlining the decision justified the uplift by explaining that it was to cover the two years where fees didn't rise during covid "plus an adjustment to allow for the underlying higher rate of medical inflation".

It added that a "detailed costing review was last carried out in 2021 and no inflation increase was implemented in 2022".

"The private patient tariff covers services offered by HCS which patients with insurance, or self-funding patients, can access separately to their state-provided care," the Health Department said.

Pictured: The 6% uplift in private patient tariffs was approved by Health Minister Karen Wilson – now, the Treasurer of the States must sign it off.

"These services offer patients choice and are an important contribution to the island’s healthcare economy, supporting the HCS budget in providing services to public patients. 

"As stated in the Ministerial decision 'the tariff has not been uplifted for inflation for two financial years' therefore the 6% [increase] covers the two years."

The report also states that private patients accessing Health services must "simultaneously" "fully cover costs" and also "not make a surplus".

Pictured: The Government explained that the ‘schedule of tariffs’ lists estimated additional income to HCS when the 6% increase is applied. Column 2 is for a full year in 2024 and column 3 is for the four months of 2023 when the increase will come into effect. It is broken down by business unit of where private patient income is received.

The Government confirmed that "any additional income as a result of these increases will be offset by the staff and non-staff costs of providing these services to the public".

Following the Health Minister's approval, the increase must now also be approved by the Treasurer of the States.

On receipt of Treasury and Exchequer approval, new tariffs are set to take effect from 1 September 2023.