UnitingCare Queensland has reached a new financial agreement with Australia’s largest health insurance buying group, after giving notice to end its contract last month.
The details of the agreement with the Australian Health Service Alliance (AHSA) have not been made public and are “still being finalised”, a joint statement said.
The not-for-profit organisation behind four Queensland hospitals gave notice to end its contract less than a month ago, leaving nearly half a million Queensland policyholders in limbo.
“We are extremely pleased to have reached a fair and sustainable outcome with AHSA and their member funds,” the UnitingCare CEO Craig Barke said.
AHSA’s members have more than two million policyholders — 570,000 of them in Queensland.
The ABC previously reported that If a new deal was not reached by the end of November, policyholders with AHSA’s member health funds would not be covered at UnitingCare Queensland’s hospitals.
UnitingCare runs The Wesley Hospital and St Andrew’s War Memorial Hospital in Brisbane, Buderim Private Hospital on the Sunshine Coast and St Stephen’s Hospital at Hervey Bay.
It was the second not-for-profit provider to flag a split from a major insurer.
Policy holders ‘caught in the middle’
In a statement, Australian Medical Association Queensland (AMAQ) president Dr Nick Yim said the new financial agreement was a “promising sign”.
“We urged both parties to get back to the negotiating table for the sake of our health system and the health of patients,” he said.
“The dispute is yet another in a long line of contract disagreements, leaving policy holders of over 20 insurers caught in the middle and potentially facing higher out of pockets charges.”
Dr Nick Yim said the new financial agreement was a “promising sign”. (Supplied)
Dr Yim said “these disputes undermine the confidence Australians have in the private health insurance agreements”.
“Particularly as we continue to see significant premium increases at a time when people are facing cost of living pressures,” he said.
