Medibank is advocating for a significant expansion of hospital care in the home to ease pressure on the traditional hospital system. A new KPMG report commissioned by Medibank outlines potential economic benefits of this approach, estimating that by 2030, up to 30% of conditions could be treated at home.
Home hospital models aim to deliver the same level of acute care found in conventional hospitals, utilizing a mix of technology and in-person support from healthcare professionals. The report suggests that broader adoption of home care could lead to:
- Up to 1.2 million fewer bed days in hospitals
- Savings of up to $1 billion in healthcare costs
- A reduction of $6.4 billion in capital expenses for new hospital infrastructure
These home care models have demonstrated comparable or superior quality of care, reduced risks of hospital-acquired complications, and high patient satisfaction. They also promise better access for patients in regional and rural areas.
Medibank CEO David Koczkar praised the report, highlighting the demand from patients for more home-based care options. He emphasized the need for a shift in the healthcare system to ensure sustainability and choice for patients.
“Australia relies too heavily on traditional inpatient care, limiting access and options for patients,” Koczkar said. “While physical hospitals are crucial, they shouldn’t be the only option. Patients prefer the comfort of home, which also frees up beds for those who need them most.”
KPMG economist Dr. Craig Emerson noted that the report indicates home hospitals could significantly transform the healthcare landscape. With current challenges such as ambulance delays and bed shortages, he stressed the importance of adopting these models now to prepare for future demands.
By 2030, the report estimates that 350,000 patients could receive care at home rather than in traditional hospital settings. However, Australia has been slow to implement these models, with only a few examples like The Alfred (Victoria), rpavirtual (New South Wales), and My Home Hospital (South Australia).
The My Home Hospital service, a collaboration between Medibank’s Amplar Health and Calvary Health Care, has served over 15,000 public patients since its inception in 2021, saving more than 69,000 hospital bed days. Patient satisfaction rates are high, at around 98%.
Seventy-four-year-old Leonard Nicholls, who received care at home after a pneumonia hospitalization, shared his positive experience: “I felt supported with daily nurse visits and regular check-ins with my doctor via video calls. It was easy, and I appreciated being able to recover at home with my family and pets.”
About Home Hospitals
Home hospitals provide a medically-led, coordinated alternative to inpatient care, offering continuous, comprehensive acute care at home. This includes assessments by healthcare professionals to determine eligibility and the provision of advanced services like mobile diagnostics, IV medications, and remote monitoring, supported by technology for ongoing patient care.
