Healthscope Darwin: More than 50,000 Territorians affected by private health funds feud

More than 50,000 Territorians will soon find it harder to access private hospital services amid a feud between a private hospital operator and insurance firms. See the list of insurers affected.

Darcy Fitzgerald

2 min read

November 27, 2024 - 6:30AM

Darwin Private Hospital. Picture: DPH

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Approximately 51,000 Territorians with certain private health cover will soon find it harder to access services at the NT’s only private hospital due to a fallout between the hospital’s operator and a group of insurers.

The operator behind Darwin Private Hospital, Healthscope, recently terminated its contract with Bupa and Australian Health Service Alliance (AHSA).

AHSA funds include Teachers Health Fund, Defence Health, Territory Health Fund and Police Health Limited.

In a letter to Chief Minister Lia Finocchiaro and Health Minister Steve Edgington, chief executive of Private Healthcare Australia Doctor Rachel David condemned the “unprecedented” move.

Dr David said it would affect 51,000 Territorians and force them to pay more.

It has been reported more than 40 private hospitals across Australia will be affected. Picture: Generic

The termination has affected customers nationwide, with reports stating about 40 hospitals will no longer accept Bupa and AHSA health insurance.

Healthscope – run by Canadian multinational company Brookfield – told this masthead it had not wanted to terminate its contracts.

“These funds’ refusal to come to the table and fund our hospitals properly, has left us with no choice but to terminate,” a Healthscope spokesperson said.

They said Australia’s private hospital system is in “crisis”, pointing to the closure of 20 private hospitals and 70 services in recent years.

“Territorians have the option of switching their cover to another health insurer,” the spokesperson said.

“If they move to a comparable product, they should not need to re-serve waiting periods.”

Darwin Private Hospital is operated by Healthscope. Picture: DPH

Stuck in the middle of the stoush are Territorian health fund customers like local teacher Emily Parker.

“We do not have the privilege of being able to ‘shop around’ for a private hospital in the Territory,” Ms Parker said.

She lamented large multinational corporations intervening in local industry health funds.

“It is also deeply concerning that behemoth foreign companies can hold so much sway over Australian industry health funds that provide not-for-profit cover for Australian workers such as defence, education, healthcare, and police,” she said.

Territorian Bupa member Reyna Pacini said she has also been disadvantaged by Healthscope’s decision and was left with no other options than to pay the extra charge or change insurers.

“I’m very annoyed with Healthscope,” she said.

“I have been with Bupa since it was MBF - so over 36 years.”

Dr David said she understood Territorians’ concerns.

Dr Rachel David is the chief executive of Private Healthcare Australia. Picture: Supplied

“We understand that the Darwin Private Hospital is in a unique position because there are no alternative private hospitals of a similar type in the NT,” she said.

Chief executive of AHSA Mr Andrew Sando accused Healthscope of running a “monopoly” in the Territory which “they hold over the health and wellbeing of Territorians”.

Bupa customers remain fully covered with Darwin Private hospital until at least February 20, 2025 when their contract expires.

AHSA’s coverage will be cancelled from March 4, 2025.