Should Australian Government privatise medibanks?
Medibank Private is Australians Government owned company which was formed by the Labor party of Australia in June 1976. In October 1976, it starts operation under the Fraser government. It main purpose was to provide private medical and hospital insurance in all sectors to overcome the existing health insurance. The medibank private operator was the Health Insurance Commission (HIC) (Cavill, 2014) Medibank private is the larger health insurance in Australia with around 3.8 million members. In 2006, the Howard’s government intended to sale the medibank private company. This year, the Abbot government announced to privatise medibank to increase a better values and health outcomes to a competitive and an efficient in a private health insurance company (Whitfield, 1983). Argued that, privatisation has been a proved by the international trend, as more valuable assets than the public sector. It is well organised method to promote durable welfare and public services in the interest of capitalism. This paper will discuss the effects of privatisation on the market competition, high quality in health sector, less regulation and the residual risk and liabilities.
The Medibank Health Company is owned and run by the government as the market regulator and funds the activities as well (Deakin, 2014) stated that, the Government believes medibank has no well-organized reason to continue the services in public sector. The government experiences more Competition and workload in the management of the industry. According to The government intentions to privatise medibank, in order to perform well in the market and reduce the conflict of interest that exists within the government (Buckmaster & Davidson, 2006) point out that, medibank privatisation will surely contribute to competitive and an efficient in the private health insurance industry. As a result of a medibank private sale, the rich and the Poor will definitely and possibly change to great concentration and rationalisation within the company. Having discussed competition, the next paragraph will explain high quality service.
The privatisation of medibank has an important role in which the services are change to a high quality outcome (Cook, 2006). General speaking, medibank privatisation will contribute to reasonable good services. For example, company will be easily managed and controlled. No conflicting ideas, because the decision come from the owner. Doctors and customers representatives will deliver satisfactory services to its members. The expectation from Privatisation is to lower the costs of production and promote a higher quality level of service to consumers. Private health insurance is very convenience and fast service as well. For example, the hospital waiting time will be less (Luke & Jerome 2006) state that, the government objective of the sell is to promote high quality levels of the company. Moreover, the interest of the...