In-principle agreement reached with Healthscope

In-principle agreement reached with Healthscope

Key takeaways:

• Healthscope and the Australian Health Services Alliance (representing Doctors’ Health Fund), signed an in-principle agreement commencing 4 March 2025
• Doctors’ Health Fund members remain covered as per their current policy at all of Healthscope’s 38 private hospitals
• Doctors’ Health Fund looks forward to continuing working closely with Healthscope to deliver high-quality care to our members

Message from the CEO

Late last year, Doctors’ Health Fund were advised by the Healthscope Group that it had decided to terminate our two-year hospital contract on 4 March 2025. The contract was due for formal renewal a year later on 4 March 2026.

Since then, the Australian Health Service Alliance (AHSA) has been negotiating on behalf of Doctors’ Health Fund and the other member-based funds it represents, to reach a suitable agreement.

Pleasingly, after months of negotiations, we have now entered an in-principle agreement with Healthscope.

This is an excellent outcome and means the Group has withdrawn its contract termination, and most importantly, our members remain covered as per their current policy when accessing care at any Healthscope hospital across Australia. We are very appreciative of all the support we’ve received from members during this period of uncertainty and thank you for your patience and understanding.

While this contract termination came mid-term and without warning, we remained focused on ensuring the affordability of private healthcare, while at the same time, acknowledging the funding pressures some private hospitals are experiencing.

We understand that discussions over cost agreements are a standard part of the healthcare landscape. Typically, these negotiations occur privately and in good faith.Our fund currently maintains long standing and ongoing contracts with over 500 private hospitals nationally, with contract terminations rarely occurring – making this contract cancellation by Healthscope very disappointing.

Unfortunately, in recent months, we’ve seen the usual spirit of cooperation between insurers and private hospitals being overshadowed by public comments that insurers are squeezing private hospital operators to boost profits.

Such claims fail to consider the fact that around 2.5 million Australians are covered by AHSA funds that are mutuals or part of mutuals, like ours.These restricted funds provide cover for teachers, police, defence personnel, emergency service workers, and doctors, to name a few.

Our goal is not to maximise profits for shareholders, but to deliver a sustainable return and keep premiums affordable and improve services for our members.

Going forward, I know all of us here at Doctors’ Health Fund look forward to an ongoing positive relationship with the Healthscope group and their leadership team. We will also continue to conduct negotiations with our private hospital partners in good faith to support their sustainability and the ongoing delivery of high-quality care to our members.

Peter Aroney,

CEO, Doctors’ Health Fund

Private health insurance products are issued by The Doctors’ Health Fund Pty Limited, ABN 68 001 417 527 (Doctors’ Health Fund), a member of the Avant Mutual Group. Cover is subject to the terms and conditions (including waiting periods, limitations and exclusions) of the individual policy, available at doctorshealthfund.com.au/our-cover