Mater has confirmed 400 staff will lose their jobs from its internal pathology unit over the next 12 to 18 months, including 100 positions ending before Christmas, as the major Queensland hospital operator moves to external providers. Health Minister Tim Nicholls expressed sorrow for affected workers and called on the federal government to ensure Medicare rebates cover the cost of delivering services.
The decision to switch to an external provider was attributed to cuts to Medicare subsidies, which Mater says have not kept pace with rising delivery, workforce and property costs. Mater Pathology currently offers blood tests, respiratory testing, glucose tolerance testing and non-invasive prenatal testing.
Under the new model, pathology services at Mater's Brisbane and Springfield hospitals will be delivered through specialist providers including Sullivan Nicolaides Pathology and Pathology Queensland. The change will not affect Mater hospitals in Townsville, Mackay, Rockhampton, Bundaberg or the Gold Coast, which already rely on external pathology service providers. Mater said future employment decisions were a matter for the external providers.
A Mater spokesperson said the decision was not a reflection of staff capability. "The pathology model Mater is adopting is used by private hospital operators across Australia and will allow more resources to be directed to the clinical care of our patients," the spokesperson said. "We are deeply grateful to our Mater Pathology people. This decision is not a reflection on their capability, professionalism or commitment." The spokesperson said the transition would have no impact on the high-quality care Mater patients receive, with continuity of care underpinning every stage.
Health Minister Tim Nicholls expressed sorrow and sympathy for affected staff and agreed that current federal funding arrangements were not keeping pace with demand across numerous healthcare services. Nicholls called on the federal government to ensure the Medicare rebate works as intended. "Cost-of-living pressures, even for those people who have private health insurance, is making people turn up at our emergency departments and use public health services rather than relying on their private health insurance," he said. "And so we do need the Commonwealth to step up to make sure that the Medicare rebate does actually cover the cost of delivering those services."
Nicholls said he had been in contact with Mater about the planned cuts and said redeployment opportunities would be explored. Pathology Queensland would step in where it could, and although fully staffed at the moment, it would look to provide opportunities for Mater Pathology workers.
Analysis
Why This Matters
- 400 healthcare workers face job losses, with 100 to go before Christmas, affecting families and the local health workforce.
- Patients may experience changes in pathology service continuity, though Mater says there will be no impact on care.
- The decision highlights broader financial pressures on private hospitals and the adequacy of Medicare rebates, which may have implications for healthcare funding policy.
Background
Mater is a major Queensland healthcare provider that operates both private and public hospitals. It had run its own pathology unit, Mater Pathology, but says rising costs and insufficient Medicare subsidies have made it unsustainable to continue the internal service. The transition to external providers Sullivan Nicolaides Pathology and Pathology Queensland will take place over the next year.
Key Perspectives
- Mater: says the transition is necessary due to cuts to Medicare subsidies that have not kept pace with costs; the new model is already used by other private hospital operators and will allow more resources for clinical care; the decision is not a reflection on staff capability.
- Health Minister Tim Nicholls: expresses sorrow for affected workers, agrees that Medicare funding has not kept pace, and calls on the federal government to act; says redeployment through Pathology Queensland will be explored.
What to Watch
- The number of Mater Pathology staff who are redeployed through Pathology Queensland and other providers.
- Any changes in pathology service quality or turnaround times at Mater hospitals during the transition.
- Whether the federal government responds to growing calls from states and providers to increase Medicare rebates.
Checked
12 claims in this story checked against 2 sources: 11 supported.
Show each claim
- SupportedMater confirmed 400 pathology job losses.Sydney Morning Herald - Latest News: “Mater confirmed 400 full-time and casually employed staff would lose jobs from its internal pathology unit across Brisbane and Springfield over the next 12-18 months”
- SupportedHealth Minister Tim Nicholls urged the federal government to ensure the Medicare rebate works as intended.Sydney Morning Herald - Latest News: “Tim Nicholls called on the federal government to ensure Medicare rebate was working as intended.”
- SupportedOne hundred positions are to end before Christmas.Sydney Morning Herald - Latest News: “including 100 positions before Christmas.”
- SupportedThe 400 staff will lose their jobs over 12 to 18 months as Mater transitions its internal pathology unit to external providers.Sydney Morning Herald - Latest News: “Mater confirmed 400 full-time and casually employed staff would lose jobs from its internal pathology unit across Brisbane and Springfield over the next 12-18 months”
- SupportedMater attributed the switch to external providers to Medicare subsidy cuts that had not kept pace with rising delivery, workforce and property costs.Sydney Morning Herald - Latest News: “The decision to switch to an external provider was put down to cuts to Medicare subsidies, which they say have not kept pace with rising delivery, workforce and property costs.”
- SupportedThe new model will use Sullivan Nicolaides Pathology and Pathology Queensland at Mater's Brisbane and Springfield hospitals.Sydney Morning Herald - Latest News: “Under the new model, pathology services at Mater’s Brisbane and Springfield hospitals will be delivered through specialist providers, including Sullivan Nicolaides Pathology and Pathology Queensland.”
- SupportedThe change will not affect Mater hospitals in Townsville, Mackay, Rockhampton, Bundaberg or the Gold Coast, which already use external pathology providers.Latest business news: “The change will not affect Mater hospitals in Townsville, Mackay, Rockhampton, Bundaberg or the Gold Coast, which already rely on external pathology service providers.”
- SupportedA Mater spokesperson said, “The pathology model Mater is adopting is used by private hospital operators across Australia and will allow more resources to be directed to the clinical care of our patients.”Latest business news: ““The pathology model Mater is adopting is used by private hospital operators across Australia and will allow more resources to be directed to the clinical care of our patients.”
- SupportedA Mater spokesperson said, “We are deeply grateful to our Mater Pathology people. This decision is not a reflection on their capability, professionalism or commitment.”Latest business news: ““We are deeply grateful to our Mater Pathology people,” the spokesperson said. “This decision is not a reflection on their capability, professionalism or commitment.””
- SupportedNicholls said, “And so we do need the Commonwealth to step up to make sure that the Medicare rebate does actually cover the cost of delivering those services.”Sydney Morning Herald - Latest News: ““And so we do need the Commonwealth to step up to make sure that the Medicare rebate does actually cover the cost of delivering those services.””
- SupportedNicholls said he had contacted Mater about the planned cuts and that redeployment opportunities would be explored.Sydney Morning Herald - Latest News: “Nicholls said he had been in contact with Mater about the planned cuts and said redeployment opportunities would be explored.”
- Partly supportedPathology Queensland would step in where it could and, despite being fully staffed, would look to provide opportunities for Mater Pathology workers.Sydney Morning Herald - Latest News: ““Pathology Queensland will, where it can, step in to pick up services … [and] although we’re fully staffed at the moment, we will be looking to provide opportunities for those people who worked at Mater Pathology.””