Healthscope: Six health funds to be covered by private hospital operator after negotiations
There is good news for teachers, as well as members of five other health funds, following a public battle between a health fund and private hospital operator Healthscope over a new contract.
Manly
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A public spat between private health provider Healthscope and a prominent health fund has come to an end after a last minute agreement.
Following weeks of negotiations, the Australian Health Service Alliance (AHSA) and Healthscope’s private hospital network reached an in principle agreement to be formalised over the coming days.
It comes just weeks after the boss of one of the funds represented by the AHSA, Teachers Health, slammed Healthscope for its “opportunistic and exploitative behaviour” towards teachers who are on the COVID-19 frontline.
Brad Joyce, CEO of Teachers Health told the Manly Daily in May that Healthscope’s decision to terminate during the pandemic was “irresponsible and unconscionable”.
Healthscope, which last month began proceedings to terminate contracts with six health funds, said at the time the deal was “simply not enough to allow our hospitals to meet their costs, such as paying the salaries of our nursing and other hospital staff” and “was also significantly out of step with what other health insurers pay”.
Steven Rubic, Healthscope CEO, said in a message to staff this week that the operator had received an updated offer from the AHSA for a new two-year contract with their hospitals.
“We have reviewed the revised offer and are comfortable that now it represents a commercially viable and sustainable proposition for our hospitals,” he wrote.
“As a result, I’m pleased to advise that we now have an in-principle agreement with the
AHSA for the 28 health funds they represent.”
He also confirmed that Healthscope has suspended its intention to terminate contracts with six AHSA funds, a new agreement is formalised with the AHSA.
The health funds are: Teachers Health, CUA Health, Commonwealth Bank’s CBHS Corporate Health, Australian Unity, CBHS Health Fund and Reserve Bank Health Society Ltd.
Members of these and the other AHSA funds can now continue to be treated in our hospitals with no additional out of pocket charges.
Following the agreement Mr Joyce said this week the health fund will “always fight for quality and value for our members in every negotiation and business decision”.
“As a not-for-profit health fund, our focus is on providing quality and value to our members,” he said.
“That’s why we negotiate our contracts with hospitals, to help members access a high standard of care with minimal out-of-pocket costs.”
The Healthscope hospitals in NSW include Campbelltown Private Hospital, Mosman Private Hospital, Nepean Private Hospital, Newcastle Private Hospital, Northern Beaches Hospital, Norwest Private Hospital, Prince of Wales Private Hospital, Sydney Southwest Private Hospital, The Hills Private Hospital, The Sydney Clinic, Tweed Day Surgery, Hunter Valley Private and Lady Davidson Private.