Highlights
- According to the new Cyber Security Bill proposed in Australia, private hospitals with Intensive Care Units must comply with cyber security obligations
- Private hospitals are having difficulty in complying with new security measures due to their costs
- According to Catholic Health, the not-for-profit hospital sector would struggle to meet the reforms' standards, and patient care could suffer as a result.
According to the private hospital sector of Australia, new restrictions under the federal government's Critical Infrastructure Protection Bill, have caught them off guard and may force them to close intensive care units owing to the increased cost.
The law aims to ensure that Australia's essential infrastructure is protected from cyber assaults. Institutions with intensive care units (ICUs) in both public and private hospitals are considered important industries and must comply with the law.
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On 10 February 2022, the Minister for Home Affairs introduced the Security Legislation Amendment (Critical Infrastructure Protection) Bill 2022 (the SLACIP Bill) in Parliament. The SLACIP Bill proposals are as follows:
- Additional improvements to the Security of Critical Infrastructure Act 2018 (SOCI Act)
- Sanction a structure for risk management programs
- Declarations of systems of national significance and improved cyber security obligations.
Why are private hospitals not ready for the change?

Image source: © Karenr | Megapixl.com
The proposed Security Legislation Amendment (Critical Infrastructure Protection) Bill 2022 will give the government new authority to demand critical hospitals with intensive care units to comply with cybersecurity obligations (ICUs).
However, private hospitals are finding it difficult to comply with the new security measures as it is financially unaffordable unless they are given financial support from the federal government.
According to media reports, the new measures will require hospitals with ICUs to develop "risk management programs" that will cost AU$8.5 million in the first year and ongoing costs of AU$6 million per year.
Ramsay Health Care, one of the biggest healthcare providers in Australia, stated that hospitals might delay implementing new law due to the impacts of the COVID-19 pandemic. Similar view was voiced by Catholic Health Australia and Uniting Care Queensland.
Ramsay Health Care claimed that only some of its facilities would fall under the definition of a critical hospital, leading to inconsistent requirements for enterprise-wide services.
Ramsay believes that the proposed SLACIP changes', duties and costs will dissuade private operators from entering the market, resulting in detrimental health consequences.
According to Catholic Health, the not-for-profit hospital sector would struggle to meet the reforms' standards, and patient care could suffer as a result. Uniting Care Queensland shared this viewpoint on the non-government hospital sector, and it was reiterated in a further supplemental submission.
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