Millions of Australians are expected to be affected as Healthscope, Australia’s second largest operator of private hospitals, ends its agreements with two major health insurers, Bupa and the Australian Health Services Alliance.
Healthscope CEO Greg Horan said Bupa and the AHSA’s “refusal” to keep funding for its hospitals at sustainable levels had forced the company to terminate the contract.
‘Healthscope cares for more than 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,” Mr Horan said.
‘In an environment of rising costs and private hospital closures, it is unacceptable that insurers are not delivering on their core purpose of funding the care of their members, especially those of insurers like Bupa, which 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 insurers and the AHSA collectively covers more than 2.5 million people.
Andrew Sando, CEO of the Australian Health Services Alliance, accused Healthscope of “gouging” the public.
“Healthscope is driven by one thing: maximizing returns for their investors, regardless of the impact on Australia’s private healthcare system,” he said.
“If member insurers and non-profit insurers are forced to pay more to Healthscope to improve the bottom line of Canada’s private equity owners, then it is inevitable that premium prices will be affected, putting pressure on the cost of living that is being faced.” is further enlarged. ordinary Australians.
“Higher premiums mean greater affordability challenges for ordinary Australians, reduced membership and participation in private health insurance, increased reliance and pressure on public services and longer waiting lists.”
Bupa APAC CEO Nick Stone said customers would be covered at Healthscope hospitals until February.
‘We are shocked and deeply disappointed by Healthscope’s actions.
“They appear to be ignoring the interests of our shared patients and customers by attempting to influence their access to healthcare.
“Insurers and hospitals must put aside their individual interests and work productively, together with government, to ensure that our shared customers and patients continue to have choice and access and that our private healthcare remains affordable and sustainable.”