Tellytubby,

If you were happy going public with dd the first time, why not stick with that?

I went private (private hospital) and it cost me my hospital excess, which was $200. The only additional cost I had was meals for DH. Having said that, each health fund is different and you would need to check what you are & aren't covered for. I know my dd was covered under me after being born, but I had to add her straight away after being discharged from hospital. I think I may have converted to family cover either just before she was born or just after. (previous to this I was under single cover)

The one thing I found going private is the own room experience, which is good that you can do what you want, when you want. Ie: shower at any time, sleep without being disturbed by others. One other thing, I didn't get 'kicked out'. I stayed 8 days in hospital after having dd and they said I could stay longer as I was having bf difficulties. Not sure how that would work if you are a private patient in a public hospital.
GL, you will do what is best for you & your family. Don't be bothered by your friend, she sounds a bit pretentious (sp)