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This article is from the soc.culture.australian FAQ, by Stephen Wales with numerous contributions by others.

8.7.6 Private Hospitals

Private hospitals are profit making entities (typically owned by a
syndicate of doctors, but sometimes by civic organisations or
insurance companies.) They provide a range of routine surgical and
convalescent care, generally leaving more serious conditions to the
public hospitals in order to reduce their need for expensive capital
equipment. (Although, there are exceptions to this. For example, many
private hospitals have found CAT and MRI scanning to be very
profitable.)

From a patients point of view, private hospitals provide only
Intermediate and Private ward care.

 

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