Millions of ns are expected to be impacted as Healthscope, ‘s second-largest private hospital operator, terminates its agreements with two major health insurers, Bupa and the n Health Services Alliance.
Healthscope, which runs 38 private hospitals across , announced last month it planned to charge members of several health funds a ‘hospital facility fee’ of $50 for same-day services and $100 for overnight services.
But after Bupa and n Health Services Alliance (AHSA) refused to pay the proposed fee, Healthscope said it had no choice but to end its contracts with them.
‘Healthscope cares for over 650,000 patients every year and we are absolutely committed to providing the best possible care. But we can only do this if we are adequately funded,’ Healthscope CEO Greg Horan said.
‘In an environment of rising costs and private hospital closures, it is unacceptable for insurers to fail their core purpose – funding the care of their members, particularly those like Bupa who are boasting of record profits.’
Horan claimed that while private hospitals were losing money, health insurers were ‘banking record profits’.
It means that Bupa and AHSA members could be forced to pay hundreds of dollars more to be treated in a Healthscope hospital.
The changes will take effect on February 20, 2025, for Bupa, and on March 4, 2025, for AHSA funds.
These terminations will impact all Bupa customers and those insured by AHSA members, including n Unity, GMHBA, Health Partners, Westfund, and HIF.
Bupa has 4.1 million health insurance members and the AHSA collectively covers more than 2.5 million people.
Healthscope is owned by North American private equity group Brookfield.
Dr Rachel David, the CEO of Private Healthcare , the peak body for health funds, accused the company of ‘unethical behaviour’.
‘This is another unethical tactic from a $1 trillion North American private equity firm that appears intent on holding health fund members hostage, while also trying to bully health funds into paying them more so they can increase their profits,’ Dr David said.
‘If Healthscope was serious about delivering patient care to ns in a cost-of-living crisis, it would negotiate an affordable and sustainable outcome, rather than throwing its toys out of the cot.
‘There is no scope for health funds to pay across the board, above-inflation increases to private hospitals.
NSW
Campbelltown Private Hospital
Hunter Valley Private Hospital
Lady Davidson Private Hospital
Nepean Private Hospital
Newcastle Private Hospital
Northern Beaches Hospital
Norwest Private Hospital
Prince of Wales Private Hospital
Sydney Southwest Private Hospital
The Hills Private Hospital
The Sydney Clinic
Tweed Day Surgery
Windsor Road Private Clinic
Northern Territory
Darwin Private Hospital ACT
ACT
National Capital Private Hospital
Queensland
Brisbane Private Hospital
Gold Coast Private Hospital
Peninsula Private Hospital
Pine Rivers Private Hospital
Sunnybank Private Hospital
South
Ashford Hospital
Flinders Private Hospital
The Memorial Hospital
Tasmania
Hobart Private Hospital
Victoria
Holmesglen Private Hospital
John Fawkner Private Hospital
La Trobe Private Hospital
Knox Private Hospital
Melbourne Private Hospital
Northpark Private Hospital
Ringwood Private Hospital
The Geelong Clinic
The Melbourne Clinic
The Victoria Clinic
Western
Mount Hospital
People struggling with the cost of living will simply drop out or downgrade their health cover, which leaves Healthscope worse off as its customer base dries up.’
Dr David said if Healthscope followed through with its contract termination, patients could be charged thousands of dollars to receive care at a Healthscope-owned hospital.
‘This is just not done in n health care. We don’t rip up contracts, we don’t hang patients out to dry and we don’t directly gouge patients like the American system,’ she said.
‘It’s really sad to see this North American private equity firm prepared to throw n patients, doctors, nurses and hospitals under the bus to enrich their investors.
n Health Services Alliance CEO Andrew Sando accused Healthscope of ‘gouging’ the public.
‘Healthscope is driven by one thing – maximising returns for their investors, regardless of the impact upon the n private health care system,’ he said.
‘If the member-owned and not-for-profit insurers are forced to pay more to Healthscope to improve the profit of its Canadian private equity owners, then it inevitably stands that premium prices will be impacted, further compounding the cost of living pressures facing ordinary ns.
‘Higher premiums create greater affordability challenges for ordinary ns, fewer private health insurance memberships and participation, more reliance and pressure on public services and longer waiting lists.’
Dr David said ‘health funds are doing everything possible to protect consumers against big, foreign-owned companies like this.
‘These foreign raiders are preying on Medicare and private health insurance to enrich themselves and they don’t care about rising health insurance premiums,’ she added.
‘Ripping up contracts and charging patients might be an American way of doing business, but there is no place in n healthcare for these unethical private equity bully boy tactics that have a direct impact on people’s lives.’
Bupa APAC CEO Nick Stone said customers would be covered at Healthscope hospitals until February.
‘We are shocked and deeply disappointed by Healthscope’s action,’ he said.
‘They appear to be disregarding the interests of our shared patients and customers by seeking to impact their access to healthcare.
‘Insurers and hospitals need to put aside their individual interests and work productively together, along with government, to ensure our joint customers and patients continue to have choice and access and our private health sector remains affordable and sustainable.’
While hospital and health fund disputes are common, it is very rare for a contract to be terminated.