The Australian Health Service Alliance (AHSA) has reached an in-principle agreement with Healthscope, ensuring members of AHSA’s not-for-profit funds can continue to access care at Healthscope hospitals without additional out-of-pocket expenses.
Late last year, Healthscope, which is owned by North American private equity group Brookfield and runs 38 private hospitals across Australia, making it the nation’s second-largest private hospital group, announced it planned to charge members of several health funds a “hospital facility fee” of $50 for same-day services and $100 for overnight services, including those involving ophthalmology procedures.
After a backlash from the health funds involved, Healthscope said it intended exercising its termination rights and provided 90 days’ notice as required under the contracts.
The Australian Medical Association stepped in, urging Healthscope, Bupa and AHSA to immediately resolve their respective funding disputes for the sake of patients.
In a media release this week, AHSA CEO Mr Andrew Sando said: “Our priority has always been to provide funds’ members access to high-quality, affordable private healthcare.
“This outcome safeguards their best interests while also supporting the continued delivery of safe, high-quality care.
“We know this has been a concerning time for many, however this agreement ensures uninterrupted access to private hospital care,” said Sando.
With this new agreement in place, AHSA’s 2.5 million members can access the full range of services available at Healthscope’s facilities, knowing they will not incur additional hospital charges, the release said.
“Over the past 12 months, we have strengthened our partnerships by signing new agreements with a number of leading private hospital operators across the country.”
“I look forward to continuing our partnership with Healthscope, and all private hospital providers, to ensure the best possible care for Australians and their families,” said Sando.
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