Health cuts in ‘darkened rooms in Canberra’ will impact Sydney hospitals

Small changes made in dark Canberra offices are having huge impacts on NSW emergency rooms, the premier has warned the federal government, after it announced a cut to the private health care rebate for older Australians.

Australians over 65 would be forced to pay more for their private health cover after the Albanese government announced the rebate would be cut to re-establish fairness between generations. The government is also cutting about 160,000 people from the National Disability Insurance Scheme, and tightening budgets for those who remain eligible.

When asked what impact the rebate cut would have on the NSW hospital system, Premier Chris Minns said his focus will be on getting the federal government to come to the party on delivering aged care and primary care services.

“Little changes at a federal level, made by somebody in a darkened room in Canberra, can have huge impact on an emergency department in Mount Druitt – that’s what we have to get the federal government to understand,” Minns said.

Federal Health Minister Mark Butler on Wednesday announced the savings from the rebate cut would be redirected to a $3 billion aged care package in this year’s budget, which the government says will deliver more aged care beds and better at-home care.

Data from the latest Bureau of Health Information report shows the state’s public health system experienced unprecedented demand in the final quarter of 2025, with hospital emergency department attendances the highest since records began in 2010.

The crunch on emergency departments came as the number of so-called “stranded” hospital patients – patients who could be discharged from hospital but are waiting for a place in aged or disability care – increased by 50 per cent in the 12 months to December 2025.

There were 776 such patients sitting in hospital beds waiting for an aged care place in December 2025.

“Aged care is the responsibility of the Commonwealth government and, at the moment, we’ve got the equivalent of a full public hospital filled with people who should be discharged from NSW hospitals, but they can’t be, because they’ve got nowhere to go,” Minns said.

“I think I’d be misleading you if I said everything was rosy in our public hospital system. Any pressure from a policy change at a federal level that puts pressure on the state system is one that is difficult for us to deal with.”

NSW Health Minister Ryan Park has been vocal about the impact of this “bed block” on the state’s health system, and the need for a federal-led solution.

The Herald reported in February that one in every 10 emergency patients needing a hospital bed in NSW was waiting longer than a day for admission.

Park said that as of Thursday morning, there were about 1200 aged care or NDIS patients who were unable to be discharged from hospitals in NSW.

“We all want a sustainable NDIS, and I’ve got no problem with the federal government making it more sustainable, but it can’t be more cost-shifting onto the states,” he said.

Australian Medical Association NSW president Dr Kathryn Austin backed in Minns’ warning, calling for further federal government investment to ease the aged care bed block.

“The NSW premier is right to highlight the real-world consequences of Commonwealth decisions on frontline services,” Austin said.

“Changes to settings such as the private health rebate or aged care funding do not occur in isolation. They flow directly through to emergency departments, ambulance ramping and hospital capacity across NSW.”

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