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Australia - Healthcare

Making short stay hospital care work in practice

Posted by on 26 June 2024
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A co-designed, “shared stakeholder value model” could be pivotal in making short stay hospital programs successful, according to Sharon Naidoo, Head of Policy & Government Funding at Bupa. Speaking ahead of the Short Stay Hospital Forum, Ms. Naidoo expressed optimism about the model but emphasized the need for collaboration and openness to innovation.

"We now have clear support for the short stay model and know it can be delivered without compromising patient outcomes. However, structural and process reforms are needed to make it work in practice."


How Would a Shared Value Model Work?

Funding Reform

Ms. Naidoo highlights funding as a key lever in the shared value model, noting that current mechanisms require reform. Currently, hospitals are funded based on patient stay length, despite most costs being incurred rapidly after admission.

Ravi Carouthers, Head of Health Fund Relations at Healthe Care, explains:

"70–80% of costs are acquired in the first six to seven hours of hospital admission. Funding hospitals based on bed days might seem reasonable, but it’s not always a commensurate reduction in overheads."

Ms. Naidoo advocates for funding models that incentivize efficient care while improving customer and provider experiences. Collaboration across the sector is essential to design these models.


Collaboration Across Stakeholders

Ms. Naidoo stresses the importance of engaging all stakeholders—hospitals, doctors, patients, and health funds—to align perspectives and address challenges:

"We’re asking specialists to deliver care differently and grapple with funding shifts. This requires behavioral and mindset changes."

Collaboration can also help identify friction points and enable clinicians to pivot into short stay care.


Screening for Patient Eligibility

Ms. Naidoo emphasizes the importance of screening patients for short stay care to ensure clinical governance and prioritize health outcomes:

"Patient eligibility should be managed by the treating doctor with support from their care team. Decisions should be at their discretion to ensure strong clinical governance."

Protocols must be in place to address complications and ensure patient safety.


Continuing the Debate

With the rise of chronic disease and an aging population, short stay care has a critical role to play in making healthcare systems more sustainable. However, Ms. Naidoo believes urgent discussion is needed to refine the model for mainstream practice:

"There’s evidence from other markets suggesting short stay programs can deliver efficient care while maintaining quality. But a lot of things need to shift before they can."

Ms. Naidoo will join a panel discussion on funder perspectives at the Short Stay Hospital Forum, hosted by Informa Connect on July 30 at the Rendezvous Melbourne.


About Sharon Naidoo

Sharon Naidoo is Head of Policy & Government Funding at Bupa, where she designs and implements funding models to ensure appropriate payment, funding integrity, and innovation for optimal patient outcomes. With expertise in claims risk management, analytics, and funding strategy, Ms. Naidoo is passionate about value-based healthcare and system performance.


Event Details

The Short Stay Hospital Forum will bring together private hospital operators, specialists, private health insurers, government representatives, and innovative tech providers. Joining Ms. Naidoo on the panel are:

  • Bill Prentice, CEO, Ambulatory Surgery Centre Association (ASCA), USA
  • A/Prof Daevyd Rhodda, Orthopaedic Surgeon, Sunshine Coast Orthopaedic Group
  • Jane Griffiths, CEO, Day Hospitals Australia

Learn more and register your tickets here.

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