Private hospital operator Wakefield Health Ltd said ACC may have gone too far in its bid to reduce treatment costs and is not fully responsive to the legitimate treatment needs.Chairman John Calder outlined a range of government policy changes affecting t
Private hospital operator Wakefield Health Ltd said ACC may have gone too far in its bid to reduce treatment costs and is not fully responsive to the legitimate treatment needs.
Chairman John Calder outlined a range of government policy changes affecting the company at its annual meeting today.
The company considers itself to be well-placed to offer services to an ageing population but recent policy changes and the subdued economy have reduced it revenue.
There has been a substantial increase in the length of time taken by ACC to approve surgeries and a significant increase in the number of applications for surgery rejected by ACC.
This reflected ACC seeking to actively reduce its treatment costs.
"While most in the industry would accept that there was some scope for tightening of approval processes, many would also feel that ACC have gone too far and are not being fully responsive to the legitimate treatment needs of those who the scheme was intended to cover," Mr Calder said.
"It is also unlikely that the surgical needs of those individuals declined ACC funding will disappear. Rather they will simply be transferred on to public waiting lists or will look to private insurance for cover and both of these funding pools are already under strain," he said.
He said the amount of work from district health boards was also difficult to predict.
There has been a reduction in the amount of elective surgery outsourced to the private hospitals.
"There is also little basis for projecting the inherently uncertain DHB work.
"It is, however, worth noting the changes in national policy regarding contracting with the private sector implemented last year, encouraging longer term sustainable contracting that provides certainty to both parties.
"While this does not yet appear to have resulted in substantial changes in practice, it does create the possibility of a shift from ad hoc to longer term contracting that could be mutually beneficial."
The company told shareholders that trading in the first quarter of the 2011 financial year has been consistent with the prior year.
