13 Mar Making Private Maternity Care More Affordable: A New Proposal for Parents
Australian midwives and GPs should be allowed to manage pregnancies and births in the private hospital system under a new proposal that would see health insurers funding more options for expecting families.
More Choices, Lower Costs for Expecting Families
The new proposal aims to make private hospital births more affordable by allowing midwives and GPs to manage pregnancies alongside obstetricians. Currently, many families are deterred by high out-of-pocket costs—often exceeding $6,500—leaving private maternity care out of reach.
Private Healthcare Australia (PHA) has called on the Federal Government to allow health insurers to fund more options, including midwife-led and GP-led maternity care within private hospitals. This would give parents greater choice while ensuring costs are transparent and fixed from the start.
“Many women value private hospital births for the continuity of care and access to their own doctor, but rising costs are making it unfeasible,” said Dr Rachel David, CEO of PHA. “We need funding models that allow midwives and GPs to provide care within private hospitals, particularly for low-risk pregnancies.”
A New Way to Pay for Private Maternity Care
Under the proposed system, parents would pay a single, predictable fee, covering all necessary services—including consultations, scans, and pathology. One lead practitioner (a midwife, GP, or obstetrician) would coordinate care and ensure transparency in pricing. This approach aims to eliminate surprise expenses and offer a more sustainable cost structure.
PHA suggests that both health funds and the Australian Government contribute $3,000 per patient to support this model, reducing overall costs while easing pressure on the public hospital system. This reform would expand high-quality care options for families, ensuring private maternity care remains accessible and affordable.
Currently, nearly half of Australians have private hospital cover, and one in four births take place in private hospitals. With this new model, more parents could access the benefits of private maternity care without financial stress.
