Private health insurers say soaring specialist fees and the cost of medical devices will drive premiums even higher, with benefits paid to hospitals hitting record highs, despite patient numbers struggling to recover to levels before the COVID-19 pandemic

Official data released on Tuesday underlined the cost pressures facing hospitals, which rely on funding from insurers. Those figures, released by the Australian Prudential Regulation Authority, came as hopes fade that the Albanese government’s review of the industry will end a long-running stalemate between insurers and hospitals.