31-07-2025
As Healthscope's fate looms, Lake Macquarie Private Hospital is expanding
Consumer law won't allow Ramsay Health Care to buy the up-for-sale Newcastle Private Hospital.
So said Lake Macquarie Private Hospital CEO Sharon Rewitt when asked about the prospect.
"The ACCC wouldn't easily give us another hospital in the Hunter. It doesn't like anyone to dominate completely," Ms Rewitt said.
"We already have a big footprint here."
Ramsay owns Lake Macquarie and Warners Bay private hospitals, and officially opened a $20 million surgical centre in Charlestown earlier this month.
A $45 million, six-storey expansion of Lake Macquarie Private at Gateshead gained state planning approval in May.
An earlier plan for a $120 million, 10-storey tower was also approved.
Given the volatility of the market, Ramsay is considering when and how to proceed.
However, a concussion clinic and stroke unit have been established and the oncology unit has expanded at the Gateshead site.
Newcastle Private is among the 37 hospitals owned by Healthscope, which is in receivership and expected to be broken up.
It was reported this week that Ramsay was among nine parties to express interest in Healthscope hospitals.
"Ramsay has publicly said we would be interested in some of the hospitals in areas where we are not," Ms Rewitt said.
She said the private health sector in Newcastle was "a very competitive environment".
"People are a lot more discerning now. They have information.
"They can say, 'I don't want to go to that hospital because I don't think they're good. I want to go to this hospital'."
The cost of surgery and seeing specialists in the private sector has come under scrutiny.
Federal Health Minister Mark Butler said in March that the Albanese government would upgrade the Medical Costs Finder website.
The website will display the average fee charged by specialists, including surgery prices, alongside the national average.
Mr Butler said the cost of medical and hospital services was "a key driver of health inflation for consumers".
He said this fed into "higher out-of-pocket costs and higher private health insurance premiums".
Ms Rewitt said labour and supply costs had "gone up significantly and remain challenging".
"Post-COVID, nothing really returned to normal. Over the last few years, there's definitely been an erosion of margins," she said.
Private hospitals have been locked in a battle with health insurers for higher payments to cover the rising costs of treating patients.
In March, Mr Butler threatened health insurers with "regulatory action" if they did not take "immediate steps" to boost funding to private hospitals.
Asked if her hospital had experienced a boost, Ms Rewitt said "we have".
"We're still in negotiations with a few of the insurers."
She said the price of surgeries was "dictated by what we get from the health funds".
"They say to us, this is what you'll get for this and that service."
The federal health department states that "doctors set their own fees for private medical services".
"Many doctors and insurers use gap arrangements to remove or reduce your gap payment.
"Fees for the same type and quality of care might vary, depending on who you see and where they are located."
Ms Rewitt said the healthcare sector must "find new ways of doing things".
"People are getting older and living much longer. They live with lots of comorbidities."
She said there was a lot of change and opportunity ahead.
"We do a lot more work now with robotics. Patients spend a lot less time in hospital. They recover better.
"The question then is, what resources are available after they've left the hospital."
Consumer law won't allow Ramsay Health Care to buy the up-for-sale Newcastle Private Hospital.
So said Lake Macquarie Private Hospital CEO Sharon Rewitt when asked about the prospect.
"The ACCC wouldn't easily give us another hospital in the Hunter. It doesn't like anyone to dominate completely," Ms Rewitt said.
"We already have a big footprint here."
Ramsay owns Lake Macquarie and Warners Bay private hospitals, and officially opened a $20 million surgical centre in Charlestown earlier this month.
A $45 million, six-storey expansion of Lake Macquarie Private at Gateshead gained state planning approval in May.
An earlier plan for a $120 million, 10-storey tower was also approved.
Given the volatility of the market, Ramsay is considering when and how to proceed.
However, a concussion clinic and stroke unit have been established and the oncology unit has expanded at the Gateshead site.
Newcastle Private is among the 37 hospitals owned by Healthscope, which is in receivership and expected to be broken up.
It was reported this week that Ramsay was among nine parties to express interest in Healthscope hospitals.
"Ramsay has publicly said we would be interested in some of the hospitals in areas where we are not," Ms Rewitt said.
She said the private health sector in Newcastle was "a very competitive environment".
"People are a lot more discerning now. They have information.
"They can say, 'I don't want to go to that hospital because I don't think they're good. I want to go to this hospital'."
The cost of surgery and seeing specialists in the private sector has come under scrutiny.
Federal Health Minister Mark Butler said in March that the Albanese government would upgrade the Medical Costs Finder website.
The website will display the average fee charged by specialists, including surgery prices, alongside the national average.
Mr Butler said the cost of medical and hospital services was "a key driver of health inflation for consumers".
He said this fed into "higher out-of-pocket costs and higher private health insurance premiums".
Ms Rewitt said labour and supply costs had "gone up significantly and remain challenging".
"Post-COVID, nothing really returned to normal. Over the last few years, there's definitely been an erosion of margins," she said.
Private hospitals have been locked in a battle with health insurers for higher payments to cover the rising costs of treating patients.
In March, Mr Butler threatened health insurers with "regulatory action" if they did not take "immediate steps" to boost funding to private hospitals.
Asked if her hospital had experienced a boost, Ms Rewitt said "we have".
"We're still in negotiations with a few of the insurers."
She said the price of surgeries was "dictated by what we get from the health funds".
"They say to us, this is what you'll get for this and that service."
The federal health department states that "doctors set their own fees for private medical services".
"Many doctors and insurers use gap arrangements to remove or reduce your gap payment.
"Fees for the same type and quality of care might vary, depending on who you see and where they are located."
Ms Rewitt said the healthcare sector must "find new ways of doing things".
"People are getting older and living much longer. They live with lots of comorbidities."
She said there was a lot of change and opportunity ahead.
"We do a lot more work now with robotics. Patients spend a lot less time in hospital. They recover better.
"The question then is, what resources are available after they've left the hospital."
Consumer law won't allow Ramsay Health Care to buy the up-for-sale Newcastle Private Hospital.
So said Lake Macquarie Private Hospital CEO Sharon Rewitt when asked about the prospect.
"The ACCC wouldn't easily give us another hospital in the Hunter. It doesn't like anyone to dominate completely," Ms Rewitt said.
"We already have a big footprint here."
Ramsay owns Lake Macquarie and Warners Bay private hospitals, and officially opened a $20 million surgical centre in Charlestown earlier this month.
A $45 million, six-storey expansion of Lake Macquarie Private at Gateshead gained state planning approval in May.
An earlier plan for a $120 million, 10-storey tower was also approved.
Given the volatility of the market, Ramsay is considering when and how to proceed.
However, a concussion clinic and stroke unit have been established and the oncology unit has expanded at the Gateshead site.
Newcastle Private is among the 37 hospitals owned by Healthscope, which is in receivership and expected to be broken up.
It was reported this week that Ramsay was among nine parties to express interest in Healthscope hospitals.
"Ramsay has publicly said we would be interested in some of the hospitals in areas where we are not," Ms Rewitt said.
She said the private health sector in Newcastle was "a very competitive environment".
"People are a lot more discerning now. They have information.
"They can say, 'I don't want to go to that hospital because I don't think they're good. I want to go to this hospital'."
The cost of surgery and seeing specialists in the private sector has come under scrutiny.
Federal Health Minister Mark Butler said in March that the Albanese government would upgrade the Medical Costs Finder website.
The website will display the average fee charged by specialists, including surgery prices, alongside the national average.
Mr Butler said the cost of medical and hospital services was "a key driver of health inflation for consumers".
He said this fed into "higher out-of-pocket costs and higher private health insurance premiums".
Ms Rewitt said labour and supply costs had "gone up significantly and remain challenging".
"Post-COVID, nothing really returned to normal. Over the last few years, there's definitely been an erosion of margins," she said.
Private hospitals have been locked in a battle with health insurers for higher payments to cover the rising costs of treating patients.
In March, Mr Butler threatened health insurers with "regulatory action" if they did not take "immediate steps" to boost funding to private hospitals.
Asked if her hospital had experienced a boost, Ms Rewitt said "we have".
"We're still in negotiations with a few of the insurers."
She said the price of surgeries was "dictated by what we get from the health funds".
"They say to us, this is what you'll get for this and that service."
The federal health department states that "doctors set their own fees for private medical services".
"Many doctors and insurers use gap arrangements to remove or reduce your gap payment.
"Fees for the same type and quality of care might vary, depending on who you see and where they are located."
Ms Rewitt said the healthcare sector must "find new ways of doing things".
"People are getting older and living much longer. They live with lots of comorbidities."
She said there was a lot of change and opportunity ahead.
"We do a lot more work now with robotics. Patients spend a lot less time in hospital. They recover better.
"The question then is, what resources are available after they've left the hospital."
Consumer law won't allow Ramsay Health Care to buy the up-for-sale Newcastle Private Hospital.
So said Lake Macquarie Private Hospital CEO Sharon Rewitt when asked about the prospect.
"The ACCC wouldn't easily give us another hospital in the Hunter. It doesn't like anyone to dominate completely," Ms Rewitt said.
"We already have a big footprint here."
Ramsay owns Lake Macquarie and Warners Bay private hospitals, and officially opened a $20 million surgical centre in Charlestown earlier this month.
A $45 million, six-storey expansion of Lake Macquarie Private at Gateshead gained state planning approval in May.
An earlier plan for a $120 million, 10-storey tower was also approved.
Given the volatility of the market, Ramsay is considering when and how to proceed.
However, a concussion clinic and stroke unit have been established and the oncology unit has expanded at the Gateshead site.
Newcastle Private is among the 37 hospitals owned by Healthscope, which is in receivership and expected to be broken up.
It was reported this week that Ramsay was among nine parties to express interest in Healthscope hospitals.
"Ramsay has publicly said we would be interested in some of the hospitals in areas where we are not," Ms Rewitt said.
She said the private health sector in Newcastle was "a very competitive environment".
"People are a lot more discerning now. They have information.
"They can say, 'I don't want to go to that hospital because I don't think they're good. I want to go to this hospital'."
The cost of surgery and seeing specialists in the private sector has come under scrutiny.
Federal Health Minister Mark Butler said in March that the Albanese government would upgrade the Medical Costs Finder website.
The website will display the average fee charged by specialists, including surgery prices, alongside the national average.
Mr Butler said the cost of medical and hospital services was "a key driver of health inflation for consumers".
He said this fed into "higher out-of-pocket costs and higher private health insurance premiums".
Ms Rewitt said labour and supply costs had "gone up significantly and remain challenging".
"Post-COVID, nothing really returned to normal. Over the last few years, there's definitely been an erosion of margins," she said.
Private hospitals have been locked in a battle with health insurers for higher payments to cover the rising costs of treating patients.
In March, Mr Butler threatened health insurers with "regulatory action" if they did not take "immediate steps" to boost funding to private hospitals.
Asked if her hospital had experienced a boost, Ms Rewitt said "we have".
"We're still in negotiations with a few of the insurers."
She said the price of surgeries was "dictated by what we get from the health funds".
"They say to us, this is what you'll get for this and that service."
The federal health department states that "doctors set their own fees for private medical services".
"Many doctors and insurers use gap arrangements to remove or reduce your gap payment.
"Fees for the same type and quality of care might vary, depending on who you see and where they are located."
Ms Rewitt said the healthcare sector must "find new ways of doing things".
"People are getting older and living much longer. They live with lots of comorbidities."
She said there was a lot of change and opportunity ahead.
"We do a lot more work now with robotics. Patients spend a lot less time in hospital. They recover better.
"The question then is, what resources are available after they've left the hospital."
