Healthscope reaches two year agreement with Bupa, ending Darwin Private Hospital feud
A healthcare feud which affected more than 50,000 Territorians has ended with a temporary agreement that will help keep private health in the Territory ‘affordable’. Find out more.
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A healthcare feud which affected patients nationally including more than 50,000 Territorians has ended with a temporary agreement being reached, in an effort to keep private health “affordable”.
In November last year Healthscope terminated its contract with health insurer Bupa and the Australian Health Service Alliance (AHSA) over what they said was a failure by the insurer to address rising costs.
The move meant approximately 51,000 Territorians who were members of the Territory Health Fund, Police Health Limited, Defence Health, Teachers Health Fund, and more, would have been forced to pay more for treatments.
On Friday it was announced in a joint statement an agreement had been reached between Bupa and Healthscope, operators of Darwin Private Hospital.
The agreement is set to run for two years.
In the wake of the terminated contract, Private Healthcare Australia chief executive Rachel David penned a letter to Chief Minister Lia Finocchiaro and Health Minister Steve Edgington calling to revoke Darwin Private Hospital’s license.
With the new two-year in-principle agreement signed, the companies say they will now be working “collaboratively to deliver affordable, high-quality, and innovative care for their shared patients”.
Healthscope chief commercial officer Dhruv Gupta said the new agreement meant they could continue to care for Bupa members in their hospitals across Australia “without the need for additional fees”.
“We look forward to continuing our partnership with Bupa, working constructively together to deliver outstanding and efficient patient care, and collaborating on initiatives to support the long-term sustainability of the sector,” he said.
Bupa Health Insurance acting managing director Kate Williams thanked customers for their patience during negotiations.
“We understand this may have caused our customers some uncertainty while we were working towards an agreement, and I want to thank them for their patience and understanding during the past few months,” she Williams said.
“Our priority throughout negotiations has been ensuring private health remains affordable for our customers while also acknowledging the cost pressures hospitals are facing, and supporting Healthscope to continue to deliver high-quality care, in a sustainable way.”
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