Healthscope Ends Contracts with Bupa and AHSA, Affecting 6 Million Australians

The decision follows disputes over funding and proposed patient fees, leaving policyholders with higher costs or fewer options for care.

Healthscope, Australia's second-largest private hospital operator, will terminate agreements with Bupa on February 20, 2025, and AHSA funds on March 4, 2025.
The cancellations impact 38 hospitals nationwide and approximately 6.6 million Australians insured through Bupa and AHSA-affiliated health funds.
Healthscope proposed a $50-$100 hospital facility fee to address rising healthcare costs, which insurers opposed, citing concerns over affordability and legal challenges.
Private Healthcare Australia and AHSA accused Healthscope of prioritizing profits for its private equity owner, Brookfield, while Healthscope argued insurers failed to adequately fund care amidst rising costs.
The federal health minister expressed concern but urged both parties to resolve the dispute, as Australia's private hospital sector faces closures and financial challenges.