More than 6 million Australians will lose cover at 38 private hospitals after the country’s second-largest hospital operator pulled out of agreements with dozens of funds, including major health insurer Bupa.
In a dramatic escalation of the funding stoush between private hospitals and health insurers, Healthscope announced on Friday that it would be terminating its contracts with Bupa and 30 other funds represented by the Australian Health Services Alliance (AHSA).
Healthscope chief executive Greg Horan said the company had been left with no choice but to cancel the agreements after the insurers threatened legal action against its decision in October to impose up to $100 out-of-pocket fees on Bupa and AHSA members using their facilities.
Healthscope chief Greg Horan said private hospitals were facing a “viability crisis” and some insurers had so far refused to pay for rising healthcare costs. Credit: Oscar Colman
“In the absence of fair funding, this fee was Healthscope’s best option,” Horan said in a statement. “The response from the insurers was lawfare, and we are not prepared to engage in protracted and expensive legal challenges.”
AHSA chief executive Andrew Sando said Healthscope’s decision was driven by concern for investors, not patients.
Loading
“Gouging the Australian public to generate profits for their private equity owners is not in the national interest, and flies in the face of compassionate, equitable and sustainable healthcare,” Sando said.
In Sydney, Healthscope operates Norwest, Prince of Wales, Campbelltown and Nepean private hospitals, as well as the private arm of Northern Beaches Hospital. In Melbourne, Healthscope runs La Trobe, Melbourne, Knox and John Fawkner private hospitals.
The decision presents a particular headache for fund members already booked in for surgeries or procedures at Healthscope hospitals.
Read the full article here
