Australian Study Finds Better Outcomes and Cost Savings in Private Maternity Care

A comprehensive study conducted by Monash University has revealed that women in Australia who receive obstetric-led care in private hospitals experience notably better maternal and neonatal health outcomes, while also incurring lower costs compared to those in public maternity care. The research analyzed over 362,000 births across four years, focusing on matched populations to ensure a fair comparison between the two care models.

The private obstetric model, typically managed by a single obstetrician throughout pregnancy and birth, showed reduced rates of adverse events such as neonatal death, severe birth injuries, postpartum hemorrhage, and the need for neonatal intensive care. In contrast, the public system, which often involves multiple healthcare providers with limited continuity of care, was associated with higher incidences of these complications.

Specifically, across nearly 370,000 matched pregnancies, the study found that the public system had approximately twice as many stillbirths, neonatal deaths, neonatal intensive care admissions, severe vaginal tears, and postpartum hemorrhages. Additionally, the average cost per pregnancy was significantly higher in public care, amounting to AU$28,645 compared to AU$22,757 in private care.

Researchers emphasized that these findings control for various demographic and clinical factors, suggesting that the model of care itself plays a critical role in outcomes. The study also highlighted systemic issues such as maternal age, obesity, country of birth, and birth mode that influence adverse outcomes, reflecting broader social and health inequities.

The implications of this research are substantial, particularly when considering the overall healthcare expenditure. The estimated annual extra cost of public maternity care across Australia is around AU$400 million. Efforts are underway to develop a national Maternity Learning Health System to facilitate real-time data collection and continuous improvement in care quality.

To enhance maternity services nationwide, the researchers advocate expanding access to continuity of care models, investing in comprehensive data infrastructure, and implementing targeted public health initiatives aimed at key risk factors. Ultimately, the goal is to ensure all Australian mothers and newborns receive the highest standard of care, maximizing health outcomes and cost efficiency.

Source: https://medicalxpress.com/news/2025-07-maternal-neonatal-outcomes-private-maternity.html