UnitingCare Queensland, a member of Catholic Health Australia (CHA), has today announced its decision to end its contract with the Australian Health Service Alliance after the alliance refused to present a fair offer during negotiations.
CHA fully supports UnitingCare Queensland Hospitals' decision to stand firm against inadequate funding arrangements.
"The private health insurance sector is enjoying record profits and needs to collaborate with the non-government health sector to deliver sustainable funding arrangements that serve the needs of our patients, communities, clinicians, and service providers," said Dr Katharine Bassett, CHA Director of Health Policy.
"While a similar issue last month between St Vincent's and Nib reached an outcome, we know these types of disagreements will continue as long as insurers continue to squeeze patients and hospitals.
"Hospitals across the country are closing their doors as funding from insurers fails to keep up with the soaring costs of delivering healthcare. After all, there is no private health insurance industry without viable private hospitals."
The private health industry reported a net profit of $2.1 billion for the year ending June 2023, double the previous year. Yet over 70 private hospital services have closed over the last five years due to financial difficulties caused by insurers returning less and less to patients and hospitals.
"Many Australian Health Service Alliance members return well short of the industry's 90 percent gold standard and have some of the highest management fees," added Dr Bassett.
