Millions of Australians are expected to be affected when Healthscope, Australia’s second largest private hospital operator, terminates its agreements with two major health insurers, Bupa and the Australian Health Services Alliance.
Healthscope chief executive Greg Horan said Bupa and AHSA’s “refusal” to keep funding for their hospitals at sustainable levels had forced it to terminate the contract.
‘Healthscope cares for more than 650,000 patients each year and we are absolutely committed to providing the best care possible. But we can only do this if we have adequate funding,” said Mr Horan.
“In an environment of rising costs and private hospital closures, it is unacceptable that insurers are failing to deliver on their primary objective – funding the care of their members, particularly those like Bupa who boast record profits.”
Horan claimed that while private hospitals were losing money, health insurers were “making record profits.”
The changes will come into effect on February 20, 2025 for Bupa and March 4, 2025 for AHSA funds.
These terminations will affect all Bupa customers and those insured by AHSA members, including Australian 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.
Australian Health Services Alliance chief executive Andrew Sando accused Healthscope of “ripping off” the public.
“Healthscope is driven by one thing: maximizing returns for its investors, regardless of the impact on the Australian private healthcare system,” he said.
“If member-owned and not-for-profit insurers are forced to pay more to Healthscope to improve the profits of their Canadian private equity owners, then premium prices will inevitably be affected, further compounding the pressures.” of the cost of living they face. Ordinary Australians.
“Higher premiums create greater affordability challenges for ordinary Australians, fewer memberships and participation in private health insurance, more reliance on and pressure on public services and longer waiting lists.”
Bupa APAC chief executive Nick Stone said customers would be covered at Healthscope hospitals until February.
‘We are shocked and deeply disappointed by Healthscope’s action.
‘They appear to be ignoring the interests of our shared patients and customers by trying to affect their access to healthcare.
“Insurers and hospitals must put aside their individual interests and work together productively, alongside government, to ensure that our joint customers and patients continue to have choice and access, and that our private healthcare sector remains affordable and sustainable”.