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AMA says put patients first as Queensland private hospitals and insurers reach contract stalemate

The AMA urges UnitingCare Queensland and the Australian Health Service Alliance to get back to the negotiating table to strike a deal that puts patients’ needs first while delivering a reasonable return for all parties, recognising the rising costs for providing quality care.

The AMA has highlighted yet another dispute between a private health insurer and private hospital group over contract arrangements that risk leaving patients in the lurch unless there is a resolution.

The dispute between UnitingCare Queensland and the Australian Health Service Alliance (AHSA) is just another example of a private health insurer and private hospital group being unable to agree on a new contract. 

The AMA says the latest contract dispute between private health insurers and private hospitals is more evidence for the need for reform. 

The AMA is urging UnitingCare and AHSA to continue negotiating to strike a deal that puts the needs of patients first, while also delivering a reasonable return for all parties and recognising the rising costs of providing quality care. 

AMA President Professor Steve Robson said doctors are getting fed up with constant contracting breakdowns and that something needs to change.

“This is yet another example of a private hospital group at loggerheads with private insurers over contracting arrangements that will leave policyholders of more than 20 insurers caught in the middle and potentially facing higher out-of-pocket charges,” Professor Robson said.

“The AMA has been calling for sector-wide reform that ensures the private system delivers value for patients and maintains clinical independence while ensuring the long-term viability of hospitals and insurers and has welcomed the Department of Health and Aged Care’s establishment of a Private Hospital Sector Financial Health Check as an initial step in examining growing concerns about the sector. 

“It is critical for all parties to keep patients and clinicians informed, explaining the complex transition arrangements that apply once the current agreement ends.”

The AMA says significant reform is needed to ensure the sustainability of the private health system well into the future. 

The AMA is calling for the creation of an independent Private Health System Authority (PHSA) to drive long-term reform and ensure the sector is appropriately regulated and patients get real value for money from their private health insurance.

A PHSA can be a vehicle for meaningful reform, while helping to solve disputes like this one. 

In the meantime, the AMA urges the two parties to reach an agreement for the sake of patients.

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