Bupa customers will be charged an extra $100 for an overnight stay at Nepean Private Hospital after negotiations between the insurer and Healthscope broke down.
Healthscope, which runs Nepean Private Hospital, said it would charge patients insured with Bupa an extra $50 per day, or $100 for an overnight stay.
The new fees will start from November 26 and will be on top of any out-of-pocket costs patients will already face.
Healthscope has already reached agreements with other major insurers including NIB, HCF and MediBank Private, who will pay more in funding.
“We’ve been in negotiations with Bupa and Alliance funds now for many, many months, and we have been unable to get deals that are fairly funded for the quality healthcare that we provide,” Healthscope Chief Executive Greg Horan told the Australian Financial Review.
“It is not something we’ve wanted to do, but when we’re put into this position where we have to ensure the viability of our business.”
Bupa CEO Nick Stone said he was “shocked and disappointed” with the decision.
“This is an unprecedented and unfair move by Healthscope. Everyday Australians should not be caught in the middle and penalised as a result of contract negotiations, particularly at a time when many are battling a higher cost of living,” he said.
“We have reminded Healthscope of their contractual obligations under our current three-year agreement which is designed to give patients certainty when they are at their most vulnerable seeking medical treatment. Bupa is committed to protecting its members and is actively considering all its options with respect to Healthscope proposing to unfairly charge our members.”
Rachel David, CEO of Private Healthcare Australia, the peak body for health funds, said the fee was a “new low” and that Healthscope and its North American owners Brookfield were trying to “extort money from health funds so it can make bigger profits for its overseas investors”.
She said the health funds being targeted by Healthscope already have legal contracts in place for fair funding of services and that this move could be illegal.
“This is a deeply unethical move from a $1 trillion North American private equity firm holding privately insured patients’ hostage and trying to bully health funds into paying them more so they can increase profits,” she said.
“Brookfield was only ever in the Australian hospitals market for the short term. It is trying to squeeze out as much profit as possible before it abandons Healthscope hospitals, potentially making private healthcare unaffordable in the process.
“Targeting patients is a new low. I have never seen a hospital group do this before. This will cause great distress and uncertainty for thousands of people trying to plan healthcare across Australian right now.
“Doctors who use Healthscope hospitals should consider their position, and the financial distress this will cause vulnerable people. In most locations, alternative hospital providers with more stable finances are available.”
Healthscope has been pushing a ‘Protect Your Hospitals’ campaign on its website, splashing the banner across its front page and claiming health insurers were “bleeding local private hospitals dry”.
Troy Dodds
Troy Dodds is the Weekender's Managing Editor and Breaking News Reporter. He has more than 20 years experience as a journalist, working with some of Australia's leading media organisations. In 2023, he was named Editor of the Year at the Mumbrella Publish Awards.