Healthscope, the private operator of Northern Beaches Hospital, has reached a last minute agreement with 29 private health funds, ensuring thousands will continue to have full private health cover.
Today, 4 March 2025, was to be the final day of the agreement between Healthscope and Australian Health Service Alliance (AHSA) (which represents many well known health funds such as Teachers Health, Police Health and Australian Unity Health) after negotiations broke down, forcing a directive to meet before the Commonwealth ombudsman last month.
Had the eleventh-hour agreement not been reached it would have left police, teachers, health workers, nurses and midwives, defence workers and countless others who are privately insured at risk of significant out of pocket expenses for private care.
However, AHSA confirmed last night that an “in-principle agreement” had been reached.
“Our priority has always been to provide funds’ members access to high-quality, affordable private healthcare,” Andrew Sando, CEO of AHSA said in a statement.
“This outcome safeguards their best interests while also supporting the continued delivery of safe, high-quality care.”
“We know this has been a concerning time for many, however, this agreement ensures uninterrupted access to private hospital care.”
“We know this has been a concerning time for many, however, this agreement ensures uninterrupted access to private hospital care.”
The agreement covers all 38 facilities run by Healthscope.
“Over the past 12 months, we have strengthened our partnerships by signing new agreements with a number of leading private hospital operators across the country.”
“I look forward to continuing our partnership with Healthscope, and all private hospital providers, to ensure the best possible care for Australians and their families.”
Healthscope CEO Greg Horan said the two parties had agreed in principle economic terms and will work together in the coming weeks to resolve remaining points and finalise a new contract.
“This in principle agreement means we can continue to care for AHSA members at all our hospitals without the need for additional fees. We are cautiously optimistic that we can resolve the remaining terms and finalise this agreement in short order, to avoid any future disruption for our patients,” Mr Horan said.
You can read more on the back story of the issue here.
AHSA funds include:
1. ACA Health Benefits Fund
2. AIA Health Insurance
3. CBHS Corporate PTY LTD
4. CBS Health Fund Limited
5. Defence Health
6. Doctors Health Fund
7. Emergency Services Health Pty Ltd
8. Australian Unity Health Limited
9. HBF Health Ltd (excluding WA)
10. Frank Health Insurance
11. GMHBA
12. Health Partners
13. Navy Health
14. Nurses & Midwives Health Pty Ltd
15. Onemedifund
16. Peoplecare Health Insurance
17. Phoenix Health Fund
18. Police Health Limited
19. Queensland Country Health
20. Reserve Bank Health Society Ltd
21. See-u by HBF
22. Teachers Health Fund
23. Territory Health Fund
24. TUH
25. UniHealth Insurance
26. Union Health
27. Westfund
28. HCI
29. Health Insurance Fund of Australia Limited
