What has happened?

Despite extensive efforts, Healthscope has been unable to agree fair commercial terms with the health funds which are members of the Australian Health Service Alliance (AHSA). The funds which are part of the AHSA are listed here: https://ahsa.au/our-funds/

In late November 2024, we gave AHSA health funds notice that our contract with them will terminate. What this means is that we are now in a notice period and the health fund contract continues to apply. There are no immediate impacts for patients at our hospitals.

We are trying to agree a new contract with the AHSA which means their fund members don’t have to pay additional fees for treatment in our hospitals.

We are aware of the impact this is likely to have for our patients who are AHSA health fund members. The last thing we want to do is impose any additional costs on patients during a cost of living crisis. We remain ready to work with the AHSA to reach an agreement that sustainably funds our hospitals.

Healthscope has agreements with four of Australia’s five major insurance groups (Bupa, Medibank, NIB and HCF).

Why has this happened?

Healthscope and the rest of the private health sector continue to face significant financial challenges and increasing costs. There are a number of reasons for this, including the fact that many private health insurers are not funding hospitals fairly and sustainably.

Unfortunately, the AHSA health funds were not offering funding that is sufficient for Healthscope to sustainably offer quality health care going forward, so we gave them notice that our contracts with them will terminate.

This is a disappointing outcome, and certainly not our preferred option. It is an unprecedented step, but something has to change to secure the future of private hospitals. The only long-term solution is an industry solution, with hospitals, governments and doctors forcing private health insurance companies to appropriately fund the cost of patient care. We remain ready to work with the AHSA to reach an agreement that sustainably funds our hospitals.

This issue only affects AHSA health fund members. Patients who are members of other funds are not impacted. Healthscope has agreements in place with other major Australian health insurers including Bupa, HCF, Medibank and NIB.

How can I avoid extra fees?

Australia’s private health insurance laws allow members to move their cover to another health fund without re-serving waiting periods when transferring to a comparable product. AHSA health fund members can avoid additional fees if they switch to a comparable product with another fund that has the same level of benefits and same conditions as their current product.* Healthscope has agreements in place with all other major Australian health insurers including Bupa, HCF, Medibank and NIB.

_{* Private health insurance is complex and it can be difficult to compare health insurance products. You should discuss your health insurance needs with the fund you are proposing to switch to so that you understand the new product, how it differs from your current product and can confirm that the product is right for you.}

_{Make sure you consider the products excess, co-payment, full cost and all out of pocket expenses that will apply in the event you require treatment at a hospital. You should also consider if you are obtaining a comparable product.  If you switch to a comparable product with another fund that has the same level of benefits and same conditions as your current product, you will not have to re-serve any waiting periods that have already been served.}

_{You can compare funds for free at www.privatehealth.gov.au and choose a fund that is not affected.}