Insurer lobby calls for NT Government to revoke operator of Darwin Private Hospital’s licence
The health fund feud affecting 51,000 Territorians has escalated, with a group calling on the NTG to revoke the operator behind Darwin Private Hospital’s licence over price increases.
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A lobby group has called on the Northern Territory Government to revoke the operator behind Darwin Private Hospital’s licence.
The feud between the operators of Darwin Private Hospital and major health insurers has continued, with a lobby group for the insurers suggesting the government revokes the private hospital operator’s licence.
Chief executive of Private Healthcare Australia (PHA) Doctor Rachel David made the call in a letter penned to Chief Minister Lia Finocchiaro and Health Minister Steve Edgington on Tuesday.
The letter said Healthscope – the operators of Darwin Private Hospital – had “torn up contracts” with Bupa and Australian Health Services Alliance (AHSA), the latter representing not-for-profit member health funds such as Teachers Health Fund, Defence Health and Police Health Limited.
Dr David said the “aggressive and unethical tactic being used by Healthscope” would affect 51,000 Territorians, making access to the Territory’s only private hospital more costly for these health fund holders.
Dr David said those impacted included “professions such as teachers, police, transport workers and defence force personnel”, as well as “a disproportionate number of older Australians”.
Minister Edgington responded to questions raised by this masthead in relation to the letter.
“This is an operational matter for Healthscope,” Minister Edgington said.
“Healthscope is actively examining options to offset the rising costs of hospital services, and part of this involves proposing a new hospital facility fee.”
A Healthscope spokesperson drew attention to rising costs, and said there was a reluctance by insurers to address the issue.
“We have major concerns around the long term viability of all of Australia’s private health sector if insurers are not prepared to meet the growing costs of providing patient care,” the spokesperson said.
They said it had been Bupa and AHSA’s “refusal to come to the table” to “fairly” fund patient care which led them to terminating their contracts.
They said Medibank, NIB and HCF had “done the right thing” and suggested consumers switch to these insurers.
“The ball is in Bupa and AHSA’s court to come back to the table with a fair deal,” the spokesperson said.
Minister Edgington said negotiations between the private hospital and insurers were “ongoing”.
A PHA spokesperson confirmed the insurers preferred an outcome where “Healthscope would come back to the table and arrange a fair deal for Territorians which did not increase out of pocket costs.”
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Originally published as Insurer lobby calls for NT Government to revoke operator of Darwin Private Hospital’s licence
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