The Australian Private Hospitals Association has criticised the federal government for not providing greater certainty around funding for a program that supports registrar training placements.
While the association said a decision to extend the program for 12 months had “bought students and private hospitals some time,” it said without further ongoing funding the long-term future of clinical training remained in jeopardy.
The Specialist Training Program (STP) supports registrar training placements in private hospitals across surgery, psychiatry, oncology, palliative care and rehabilitation, helping to train the next generation of Australia’s specialist medical workforce.
While the government has indicated it plans on funding the program for the 2027 training year, ongoing funding beyond a 12 month extension was not provided in the recent Federal Budget.
APHA chief executive officer Brett Heffernan described this as a “stop gap” measure that fell short of what private hospitals need to commit to places for specialist trainees.
“You can’t build a sustainable specialist workforce for the long-term on rolling 12-month extensions and expect hospitals to just wait and see,” he said.
“The risk is hospitals, who spend their own money to support these training places, may find the on-again, off-again ordeal just too hard.
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“This program has now spent years lurching from cancellation to reprieve and back again, while private hospitals are left trying to make long-term workforce and training decisions with no clear commitment from government.
“Private hospitals currently absorb significant costs to deliver specialist training, including registrar wages, supervision, accreditation and compliance requirements, with STP funding covering only part of the expense.”
Mr Heffernan said private hospitals generally operated on three-year training agreements with state health departments.
He said the lack of certainty was creating major practical challenges for hospitals trying to maintain registrar training positions.
“When the Federal Government only provides 12-months lead time on what it might or might not do, hospitals are forced into constant re-negotiations with public systems, colleges and accreditation bodies.
“Accrediting registrar positions is expensive and resource intensive, requiring hospitals to meet rigorous specialist college standards and supervision obligations.
“With the STP in limbo, it creates more administration, more cost and more instability for a program the health system fundamentally relies on.
“Private hospitals continue to invest because they understand how important this pipeline is to Australia’s future healthcare workforce.
“But there comes a point where uncertainty itself becomes the problem.
“If governments are serious about training the next generation of specialists, then they need to properly commit to it. If private hospitals are not supported to continue delivering this training, where exactly does the Government expect these future specialists to come from?”
A spokesperson for the Department of Health, Disability and Ageing said the 2026-27 Budget confirmed the Australian Government’s intention to extend existing STP grant agreement funding with 13 non-GP specialist training colleges for a further 12-month period from 2027.
“This extension maintains current STP-funded training posts until February 2028 and is intended to provide stability for the 2027 training year while the Government considers reform options for the STP.”
The spokesperson said the development of reform options had been informed by an evaluation of the program completed in 2024.
“The codesign process involved consultations with over 65 stakeholder groups, including the Australian Private Hospitals Association,” they said.
Medical Forum contacted Health Minister Mark Butler’s office about the STP funding arrangements and his office referred the matter to the department.
A spokesperson for the Department of Health, Disability and Ageing said the 2026-27 Budget confirmed the Australian Government’s intention to extend existing STP grant agreement funding with 13 non-GP specialist training colleges for a further 12-month period from 2027.
“This extension maintains current STP-funded training posts until February 2028 and is intended to provide stability for the 2027 training year while the Government considers reform options for the STP.”
The spokesperson said the development of reform options had been informed by an evaluation of the program completed in 2024.
“The codesign process involved consultations with over 65 stakeholder groups, including the Australian Private Hospitals Association,” they said.
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