Australia is significantly lagging behind other developed nations in providing hospital-level care at home, with insurance barriers preventing thousands of patients from accessing treatments in their preferred environment despite overwhelming public support for such options.
While countries like the United Kingdom deliver 20 per cent of hospital care in patients’ homes and Canada reaches 10 per cent, Australia remains stuck at just 5 per cent—a gap that healthcare experts attribute primarily to inconsistent insurance coverage rather than medical limitations.
“Hospital-in-the-home care allows patients to stay in the comfort of their own homes for a range of treatments such as dialysis, chemotherapy and palliative care,” explained Catholic Health Australia (CHA) Director of Public Health Alex Lynch. “For a range of treatments hospital in the home delivers high quality outcomes and is preferred by patients.”
Public Demand vs. Insurance Reality
Recent polling commissioned by CHA reveals that 82 per cent of Australians would choose home-based hospital care if their private health insurance covered it, highlighting a significant disconnect between patient preferences and current coverage policies.
This consumer demand comes as Australia’s healthcare system faces mounting pressure from an ageing population and hospital capacity constraints. Despite these challenges, the expansion of home-based care options remains limited by insurance funding structures.
“Expanding hospital-in-the-home care would improve outcomes for patients while taking pressure off the health system as our population ages. We should have more care offered in the home in Australia, but unfortunately we are being held back by inconsistent funding arrangements by health insurers which limits access,” Lynch said.
Patient Experience Shows Benefits
The benefits of home-based hospital care extend beyond just convenience, according to patients who have accessed these services through existing programs.
Susan Homewood, 58, who received rehabilitation at home following knee replacement surgery through Cabrini in Melbourne, shared her experience: “Having rehab at home with Cabrini made such a difference physically and psychologically – I could recover in my own space with my family by my side.”
“I believe my recovery was faster because I was navigating my usual daily tasks and focused on the future. I could also do my exercises with my physio Amber without the stress of travel time,” she added.
Call for Minimum Insurance Payments
CHA is urging the re-elected government to implement minimum insurance payment requirements—known as default benefits—for hospital-in-the-home services, similar to those that exist for traditional in-hospital care.
“Catholic providers believe that patients and their doctors should make decisions about their care, not their insurer. The future of health care in this country must be centred on patient choice, quality, and compassion,” Lynch emphasised.
Healthcare professionals specialising in home-based care echo this call for reform. James Pollard, President of the Hospital in the Home Society Australasia, highlighted the strategic importance of expanding these services: “Hospital-in-the-home is crucial because it can rapidly scale up as our population ages, taking pressure off an overstretched public health system while delivering great outcomes for patients.”
With hospital capacity under increasing strain and patients clearly expressing preference for home-based options where medically appropriate, advocates argue that addressing insurance barriers should be a priority for the new government to bring Australia’s healthcare system in line with international best practices.
Ritchelle is a Content Producer for Healthcare Channel, Australia’s premier resource of information for healthcare.
