November 22nd 2024.
Patients may soon find themselves without health coverage at various private hospitals across the country. This is due to a recent decision made by Healthscope, the operator of these hospitals, to terminate agreements with major health insurance providers such as Bupa and members of the Australian Health Services Alliance.
The disagreement began when Healthscope proposed a $100 fee for Bupa and AHSA members who use their facilities. This was in response to what they perceived as inadequate funding from insurers and the increasing cost of providing care. In turn, the insurers threatened legal action against Healthscope.
CEO Greg Horan explained that the proposed fee was their best option in the absence of fair funding from the insurers. However, they were not willing to engage in lengthy and costly legal battles, so they chose to terminate the agreements. These terminations will go into effect on February 20, 2025, for Bupa members and March 4, 2025, for AHSA funds.
The affected AHSA funds include Australian Unity, GMHBA, Health Partners, Westfund, and HIF. Horan reassured the public that Healthscope remains committed to providing the best possible care for its 650,000 patients each year. However, they can only do so if they receive adequate funding.
According to Horan, while private hospitals are losing money, health insurers are making record profits. He stated that it is unacceptable for insurers to fail in their core purpose of funding the care of their members. AHSA CEO Andrew Sando accused Healthscope of prioritizing profits over the well-being of Australians.
Sando argued that if not-for-profit insurers are forced to pay more to Healthscope, it will ultimately lead to higher premiums for members and put more pressure on public services. It is a cycle that will only compound the already high cost of living for ordinary Australians.
It is worth noting that Healthscope is owned by a Canadian multinational company, Brookfield. 9news.com.au has reached out to Bupa for comment but has not received a response yet. In a statement released on October 29, Bupa expressed their disappointment with Healthscope's decision, calling it unprecedented and unfair.
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