Enhancing patient care with a new AHSA and Healthe Care partnership

10 February 2025

Australian Health Service Alliance and Healthe Care pave the way for new era in patient-centred funding agreements

10 February 2025, Sydney, Australia: Australian Health Service Alliance (AHSA) and Healthe Care have negotiated and now commenced a major national funding agreement that prioritises patient outcomes while innovating the way we fund and value private care.

The first-of-its-kind agreement signals improvements to the way private hospitals and insurers approach nation-wide health service contracting. It builds on Healthe Care’s commitment to high quality, efficient and innovative care while helping AHSA member funds keep premiums affordable.

AHSA CEO Andrew Sando said the new agreement includes performance-related incentives drawn from AHSA’s Voice of the Patient initiative, using benchmarked patient experience and outcome data to promote continuous learning and improvement through value-based contracting metrics.

“When patients go to a hospital, they expect high quality care. Healthe Care is showing an ongoing commitment to continuous improvement in patient outcomes, and we are delighted to be partnering with them on this new, world-class solution,” said Mr Sando.

“By analysing the Voice of the Patient’s Australia-wide database, we can emphasise patient-centred care more than ever in our agreements.”

In this innovative model, Healthe Care will receive additional compensation if patient-reported outcome measures at its hospitals show continuous improvement.
Healthe Care CEO Matt Hanrahan welcomed the new agreement emphasising the focus on patient-centred innovation currently under way in private health services.

“Our agreement with AHSA demonstrates how two crucial parts of our private healthcare system can collaborate and collectively innovate to achieve better outcomes for patients,” said Mr Hanrahan.

“Our goal for our hospitals is always to create an environment that allows doctors and patients to achieve optimal health outcomes. Our commitment to quality care is why we can be a leader in new initiatives and why doctors and patients choose Healthe Care.”

Healthe Care employs nearly 4,600 people across a portfolio of 17 private healthcare facilities sites in New South Wales, Victoria and Tasmania. Patients of Healthe Care have access to over 3,000 healthcare professionals across a wide range of services.

AHSA is one of the largest buying groups of private healthcare in Australia, helping not-for-profit insurers provide the highest-quality service possible. AHSA successfully negotiates contracts with hundreds of private hospital operators across Australia every year, ensuring that the customers are not faced with out-of-pocket gaps.

“As a partner to all health stakeholders – funds, hospitals, practitioners, and patients – AHSA hopes to cooperate with more of our hospital partners to strengthen services, address costs and achieve optimal outcomes,” said Mr Sando.

“Healthe Care, with its strong focus on patients and commitment to quality, were the ideal partners to develop this initiative together.”

“All Australians should be able to access affordable, efficient and high-quality care in our hospitals. Healthe Care shares AHSA’s belief that this can only be achieved through constructive cooperation in the sector, so that the needs of hospitals and member funds can both be met.”

Mr Hanrahan added: “Sufficient and innovative funding agreements, such as this, will help ensure the long-term sustainability of our sector, allowing us to continue delivering high-quality care to thousands of patients throughout our network of urban and regional private hospitals.”

“We are extremely pleased to have reached a fair and sustainable agreement with AHSA and their member funds. Our goal was to negotiate an agreement that ensures AHSA member patients receive quality healthcare in our hospitals, while keeping private healthcare premiums accessible and affordable.”

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About Healte Care

Healthe Care Group Pty Ltd is proud to be one of the leading private hospital operators in Australia. Employing over 4,600 people and operating a portfolio of 17 private healthcare facilities across New South Wales, Victoria and Tasmania. Established in 2005, Healthe Care has grown through deliberate expansion of existing facilities, and targeted acquisition of other healthcare services. The Group offers over 1,500 private beds and 100 operating theatres, specialising in Orthopaedics, Cardiology, Gastroenterology, Urology, Mental Health, Rehabilitation and a range of other specialist surgical services.

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