A battle between private hospitals and private health insurers is playing out in public. At its heart is how much health insurers pay hospitals for their services, and whether that’s enough for private hospitals to remain viable. Concerns over the viability of the private health system have caught the attention of the federal government, which has launched a review into private hospitals that has yet to be made public.
But are private hospitals really in trouble? And if so, is more public funding the answer? Private hospitals vs private health insurers Many private hospital operators have reported significant pressures since the start of the COVID pandemic, including staff shortages . Inflationary pressures have increased the costs of supplies and equipment, pushing up the costs of providing hospital care. Now, private hospitals have publicised their difficult contract negotiations with private health insurers in an attempt to gain support and help their case.
Healthscope, which runs 38 for-profit private hospitals in Australia, has been threatening to end agreements with private health insurers . St Vincent’s, which operates ten not-for-profit private hospitals, announced it would end its contract with nib (one of Australia’s largest for-profit health insurers) but then reached an agreement . UnitingCare Queensland, which operates four private hospitals, announced it would end its contract with the Australian Health Service Alliance, which represents more than 20 small.
