Millions to lose health cover at private hospitals amid fee stoush [Video]

Patients at dozens of private hospitals around the country will be left without health cover after operator Healthscope tore up agreements with major funds including Bupa and members of the Australian Health Services Alliance.

In October, Healthscope proposed a $100 fee for Bupa and AHSA members using Healthscope care facilities, in response to what it called “chronic underfunding” from insurers, and the rising cost of providing care.

In response, the insurers threatened legal action, Healthscope said.

“We were proposing the hospital facility fee following Bupa’s and the AHSA’s failure to recognise and fairly fund the rising cost of care. In the absence of fair funding, this fee was Healthscope’s best option,” Healthscope CEO Greg Horan said.

“The response from the insurers was lawfare, and we are not prepared to engage in protracted and expensive legal challenges.”

The agreement terminations will come into effect from February 20, 2025, for Bupa members, and from March 4, 2025, for the AHSA funds.