Press Release - UnitingCare Termination

UnitingCare Qld terminates agreements with 22 not-for-profit, member owned health insurers

Press release dated 26 August 2024, Brisbane, Australia

UnitingCare (Qld) has terminated its hospital agreements with over 20 not-for-profit, member owned private health insurers represented by Australian Health Service Alliance (AHSA) after failing to agree to new contractual terms and conditions. The funds combined represent over 2 million Australians.

UnitingCare (QLD) confirmed its intention today to terminate its provider contracts with AHSA funds, with their last offer demanding over a 10% increase each year over the next two years.

Andrew Sando, CEO of Australian Health Service Alliance (AHSA), which acts as an agent for the small- to medium-sized not-for-profit funds, said it was extremely disappointing that UnitingCare (Qld) had terminated the agreement.

“We are not unsympathetic to private hospitals’ requests because we want our members and their doctors to have access to quality private services. But we must ensure private health insurance remains affordable for the majority of people,” said Mr Sando.
As context, the Health Minister approved industry-wide average premium increases of 3.03% earlier this year.

“We understand the pressures that private hospitals are under and have worked to balance their needs while being conscious of the potential impact on premiums that private health insurance members pay, remembering the funds we represent are not-for-profit and member-owned,” said Mr Sando.

AHSA successfully negotiates contracts with hundreds of private hospital operators across Australia every year, ensuring that the customers of those health insurers are not faced with out-of-pocket gaps. This year, AHSA has successfully negotiated with other large private hospital groups and has agreements with over 500 private hospitals.

AHSA wants to be able to provide quality and affordable service to its members, and as we have contracts with other quality Queensland Private Hospitals we will ensure members and their doctors can still access the care they require.

“We ideally want an agreement with UnitingCare (Qld), but it cannot be at any cost,” said Mr Sando. “Such price increases in this inflationary climate disregard the current cost-of-living pressures felt by the majority of Australians.”

“When the termination comes into effect on midnight 20th November 2024, policyholders of those insurers potentially face significant out-of-pocket gaps if they decide to be treated or are admitted to a UnitingCare (Qld) hospital,” said Mr Sando.

It is the decision of hospitals whether to ask patients to pay the out-of-pocket gap amount or not.

“Of course, patients have the option to go to any of the other 500 private hospitals we have contracts with,” said Mr Sando.

AHSA is a not-for profit organisation that exists to ensure member insurers provide the best value, high-quality health services possible, whenever and wherever patients need it. Its member funds cover more than 20% of all 15 million privately insured Australians, many of which work in critical industries: Teachers, doctors, nurses, police and emergency services, defence force and navy personnel.

“As a partner to all health stakeholders – funds, hospitals, practitioners and patients – our vision is for all sections of the system to work constructively towards more affordable, accessible care,” said Mr Sando.

Mr Sando said the not-for-profit, member owned health fund community always seeks to treat all contracted hospitals fairly and prioritises the needs of patients and doctors.

AHSA remains open to undertaking further discussions with the UnitingCare (Qld).

Hospitals Affected by the AHSA / UnitingCare (Qld) Contract Termination

• Buderim Private Hospital
• St Andrews War Memorial Hospital
• St Stephens Hospital
• The Wesley Hospital

Health Insurers Affected by the AHSA/ UnitingCare (Qld) Contract Termination

Number of people covered by AHSA member funds in QLD

• 570,664
  APRA Operations of private health insurers annual report 2022-23

About AHSA

The Australian Health Service Alliance (AHSA) is a large, member-owned, not-for-profit service organisation. We serve small to medium not-for-profit and member owned health funds to achieve the shared goal of a quality, sustainable private health insurance industry for their members. The AHSA facilitates arrangements with healthcare providers on behalf of our funds. As a large service provider and negotiating group, our funds benefit from our collective size to achieve successful outcomes for members. Negotiation of competitive, patient-focused contracts brings value to fund members and contributes to the viability of Australia’s healthcare industry. AHSA exists for our funds and our funds exist for their members. Together, we strive for high quality private healthcare at an affordable price.

Media Contacts

Eddie Morton
Eddie.Morton@Sandpipercomms.com
0499 700 295