Healthscope, who operate a network of 38 hospitals across Australia, have currently not been able to reach an agreement with the Australian Health Service Alliance (AHSA) which is why the contract has been terminated.
This termination was initiated by Healthscope as they requested higher increases in charges than the agreement they made with the AHSA in March 2024.
Health funds and hospitals have contracts with each other to ensure health fund customers can access high quality health care without charging out of pocket costs from the hospital.
Contracts provide higher than the minimum price in exchange for the hospital not charging patients for hospital and operating theatre expenses.
Nearly all private hospital services in Australia are provided under contracts between health funds and hospitals, with no additional out-of pocket-costs.
AHSA negotiates hospital contracts on Westfund's behalf.
The contract negotiations are still ongoing and it is our goal to reach an outcome that will be favourable for our members.