Sussan Ley tries to douse flames of Medibank Private-Calvary dispute

A list of avoidable medical mistakes will be fast-tracked by the federal government.

Sussan Ley has refused to take sides in the stoush. Picture: AAP

A list of avoidable medical mistakes will be fast-tracked by the federal government in an ­attempt to resolve a bitter dispute between Medibank Private and the Calvary hospital group that threatens to engulf the health sector.

With the breakdown of contract negotiations, Health Minister Sussan Ley last night warned of a “game of thrones” situation in which major stakeholders waged war at the expense of ­patients.

Medibank, the nation’s largest insurer, which yesterday posted an increased profit since privatisation, will formally end its contract with the Calvary group of hosp­itals in southern states on August 31. It follows the failure of negotiations and mediations, ostensibly over Calvary’s payment demands and refusal to forgo payment for a list of preventable errors and poor results put forward by Medibank.

Amid debate over the appropriateness of the list and who should pay for such mistakes, the government has expedited a list of ­adverse events being developed for the Australian Commission on Safety and Quality in Health Care.

The list was requested by the Council of Australian Governments in 2013 and not meant to be completed until next year, but will now be available before Christmas, a development which may break the stalemate between Medibank and Calvary and prevent similar contract disputes.

Ms Ley, who has repeatedly ­refused to take sides or intervene in the stoush, told The Weekend Australian that having an expert list endorsed by the commission would provide clarity and ­certainty for stakeholders.

“Hopefully it will also help end the current cynical game of thrones where certain private health insurers and hospitals are more focused on painting each other as villains rather than supporting patients,” she said. “If patients are unhappy with private health insurance providers and hospitals who play tug-o-war over their membership dollars then the strongest message they can send is to vote with their feet and find a better deal.”

Quality-based funding is gaining popularity in the private sector. The Weekend Australian recently revealed the Department of Veterans’ Affairs would no longer pay for serious mistakes and complications in contracted hospitals, while Bupa last year signed a similar agreement with hospital group Healthscope. Australian-based Ramsay Health Care has announced an alliance with the International Consortium for Health Outcomes Management to measure and improve on ­patient results at its hospitals.

Medibank hopes to roll out its quality-based framework to other hospitals and has had preliminary talks with Healthscope and Ramsay before contract negotiations next year.

The AMA has warned of health funds having too much power and moving toward a US-style managed care system in which they have more ­influence over treatment than ­clinicians.

Ms Ley has also agreed to look at private sector costs and rising insurance premiums, which have seen members lower their cover, risking higher out-of-pocket ­expenses or the need to go public.