I went private with DD, because I just thought that's what you did when you had PHI. i had a great ob and she didn't charge a gap nor any mid preg management fee. My most expensive outlay for the hospital stay was the aneasthetist and the pead (PHI doesn't cover you until you actually get to the hospital). Only a portion of each visit/scan is covered by medicare so yes you do have to outlay a lot. Also the midwives in the delivery suite - you never even meet them until you're in labour. How can you know that oyu will work well together or even feel comfortable?

With DS I wen though the public hospital (in a small town now and that's all there is for 200km) I saw the midwives. I was highrisk thoughout and I had fantastic care that was personal and continuous - probably more so than with the private ob. The midwives in the clinic looked after me and my baby throughout.
I used phi at the hossy and had a private room and that covered my theatre costs as well.

I would use the public system with just my PHI at the hospital again.