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Deal settles dispute threatening Bupa-insured patients with increased private hospital costs
The operator of the Shepparton and Wangaratta private hospitals says it has settled a dispute with health insurer Bupa that will ensure Bupa members are covered when they receive treatment at the facilities.
Earlier this month, Ramsay Health, the operator of the hospitals, took its dispute with Bupa public, warning Bupa members to review their health cover to avoid additional costs at the two hospitals.
At the time, a Ramsay spokesperson said its contract with Bupa ended on August 2 and that the operator had been unable to reach agreement with the insurer on “key elements of a new contract”.
Wangaratta and Shepparton private hospitals chief executive Rhys Jones even told Bupa-insured patients they could avoid paying additional out-of-pocket costs by changing health funds.
The dispute centred around the indexation rate that the provider and the insurer must agree on.
The indexation rate enables private hospitals to cover increased costs in patient care, but Ramsay had argued that Bupa’s indexation rate would not cover the cost of care for its members in Ramsay hospitals, meaning they would face additional out-of-pocket costs.
Ramsay and Bupa have signed a new three-year Hospital Purchaser Provider Agreement, avoiding that scenario.
Ramsay Australia chief executive Carmel Monaghan said the new agreement recognised both the current cost of living pressures facing health insurance customers as well as cost increases being experienced by hospitals.
“We are pleased both parties have reached an agreement that allows Bupa members to continue to be covered without the need for any additional out-of-pocket costs, while also ensuring the ongoing sustainability of the private health sector,” Ms Monaghan said.
Bupa Health Insurance managing director Chris Carroll said the agreement showed that health insurers and private hospitals wanted to put patients first and keep health costs under control.
“This three-year deal provides certainty for our members around their cover and not having to pay additional out-of-pocket costs at Ramsay hospitals,” Mr Carroll said.