Pharmacy Daily | Healthscope controversy

AUSTRALIANS with health insurance will not lose access to private hospitals, reassured the peak body for private health insurance, Private Healthcare Australia (PHA), yesterday.

This is despite a campaign launched by Healthscope and its private equity owner, Brookfield, aimed at "misleading" patients, stated PHA.

According to PHA CEO Dr Rachel David, the campaign pressures health insurers and the Federal Government for a bailout that could drive up health insurance costs for millions of Australians.

She has assured the 12 million Australians with hospital cover that health funds will protect access to essential private hospital services without increasing insurance premiums.

"Health funds are supporting private hospitals through recovery, but we will not let Healthscope's threats lead to higher costs for consumers," said Dr David.

Healthscope has threatened to terminate contracts with some health funds and impose extra charges on patients.

"It's Healthscope, not health insurers, that's threatening increased costs for pregnant women and cancer patients," Dr David emphasised, adding that health funds are committed to protecting members from rising premiums and unnecessary out-of-pocket expenses.

Brookfield, which acquired Healthscope in 2019, is allegedly accused of prioritising profits over healthcare, "having off-loaded assets and failed to manage debt effectively amid inflation and high interest rates", she said.

Dr David criticised Brookfield's tactics, saying, "the company's focus on short-term financial gains undermines our healthcare system in Australia".

As a government review into the sector continues, Dr David underscored that Healthscope's financial troubles are self-inflicted and unrelated to insurer payments.

"Health insurers are working to maintain a sustainable healthcare environment, not to bail out a foreign private equity firm," commented Dr David, reaffirming insurers' commitment to protecting members and keeping premiums low. JG