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Terry Barnes

Health insurance shouldn’t be private hospitals’ field of dreams

Instead of protecting private hospitals from predatory insurers, an obsolete contract framework protects hospital operators from full accountability for avoidable inefficiencies and commercial misjudgments.

Terry BarnesPolicy consultant

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Yet again, Australia’s private hospitals and health insurers are at each other’s throats. As The Australian Financial Review has reported, Catholic Health Australia, representing 63 Catholic hospitals, seeks Australian Competition and Consumer Commission authorisation effectively to represent member hospitals in contract renegotiations with insurers, while blocking five big insurers, including listed companies Medibank Private and Nib, from entering contracts with individual Catholic hospitals as “collective” discussions take place.

Private hospital operators, and even big for-profit ones such as Ramsay and Healthscope, routinely claim they are saints in the dysfunctional relationship between hospital operators and insurers, and that insurers are rapacious sinners.

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Terry Barnes is a Liberal Party member and policy consultant who formerly advised federal and Victorian Liberal ministers.

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    Original URL: https://www.afr.com/policy/health-and-education/health-insurance-shouldn-t-be-private-hospital-s-field-of-dreams-20240820-p5k3v6