Latest news with #RachelDavid
The Advertiser
2 days ago
- Health
- The Advertiser
Insurers accused of 'playing people for mugs'
Health insurers are spending more but leaving Australians with higher out-of-pocket expenses, sparking scorn from private hospitals. A record $12.3 billion was dished out by private health insurers in the year to March, according to official data released on Friday. But the same data shows the average Australian is paying $470.80 per hospital visit, about $46 more than a year earlier. The average gap for general treatments rose $3 to $61.64 per service. Insurers also covered less for services like accommodation, nursing, medical services and medical devices in the March quarter, compared with the December quarter. Private hospitals - already suffering workforce shortages and rising costs for supplies - say insurers were being unfair to patients by allowing gaps to increase. "Welcome to private health insurance in the modern era, too tricky by half in trying to play people for mugs," Australian Private Health Association chief executive Brent Heffernan said. "If it costs me $10 to provide a service and you pay me $8, I'm $2 out of pocket. "Next year it costs me $15 to provide that service and you pay me $10, so I'm even worse off despite you paying me more than you did last year." Insurers say they are spending $61 more per person from last year to this year. This is despite technology and changing clinical practice meaning people have shorter hospital stays. They laid the blame for higher out-of-pocket claims on specialist doctors, whose consultations cannot be covered by health insurers. "Several trends have been dampening demand for private hospital care, including the high cost to see a specialist doctor in the community," Private Healthcare Australia chief executive Rachel David said. "A 7.7 per cent increase year-on-year is a good result for private hospitals that have had a hard time due to the pandemic and inflation." Almost 12.5 million people in Australia have hospital cover, or about 45 in every 100 people. About 15.1 million have general treatment cover. More than 81,000 people signed up for hospital cover in the first three months of 2025, with the largest increase coming from 40-44 year olds. The data from the financial regulator comes after the collapse of major hospital operator Healthscope after lenders voted to stop support for their parent company Brookfield. Healthscope treats 650,000 patients a year and has 19,000 staff across 37 hospitals in the nation. Insurers say they are optimistic the private system won't crumble. "We have a good supply of private hospital services across most parts of the country, so we are confident people with hospital cover will retain access to high-quality services near their homes," Dr David said. The Commonwealth Bank threw Healthscope a $100 million lifeline while fellow lender Westpac pledged to help the company sell to a new owner. Health insurers are spending more but leaving Australians with higher out-of-pocket expenses, sparking scorn from private hospitals. A record $12.3 billion was dished out by private health insurers in the year to March, according to official data released on Friday. But the same data shows the average Australian is paying $470.80 per hospital visit, about $46 more than a year earlier. The average gap for general treatments rose $3 to $61.64 per service. Insurers also covered less for services like accommodation, nursing, medical services and medical devices in the March quarter, compared with the December quarter. Private hospitals - already suffering workforce shortages and rising costs for supplies - say insurers were being unfair to patients by allowing gaps to increase. "Welcome to private health insurance in the modern era, too tricky by half in trying to play people for mugs," Australian Private Health Association chief executive Brent Heffernan said. "If it costs me $10 to provide a service and you pay me $8, I'm $2 out of pocket. "Next year it costs me $15 to provide that service and you pay me $10, so I'm even worse off despite you paying me more than you did last year." Insurers say they are spending $61 more per person from last year to this year. This is despite technology and changing clinical practice meaning people have shorter hospital stays. They laid the blame for higher out-of-pocket claims on specialist doctors, whose consultations cannot be covered by health insurers. "Several trends have been dampening demand for private hospital care, including the high cost to see a specialist doctor in the community," Private Healthcare Australia chief executive Rachel David said. "A 7.7 per cent increase year-on-year is a good result for private hospitals that have had a hard time due to the pandemic and inflation." Almost 12.5 million people in Australia have hospital cover, or about 45 in every 100 people. About 15.1 million have general treatment cover. More than 81,000 people signed up for hospital cover in the first three months of 2025, with the largest increase coming from 40-44 year olds. The data from the financial regulator comes after the collapse of major hospital operator Healthscope after lenders voted to stop support for their parent company Brookfield. Healthscope treats 650,000 patients a year and has 19,000 staff across 37 hospitals in the nation. Insurers say they are optimistic the private system won't crumble. "We have a good supply of private hospital services across most parts of the country, so we are confident people with hospital cover will retain access to high-quality services near their homes," Dr David said. The Commonwealth Bank threw Healthscope a $100 million lifeline while fellow lender Westpac pledged to help the company sell to a new owner. Health insurers are spending more but leaving Australians with higher out-of-pocket expenses, sparking scorn from private hospitals. A record $12.3 billion was dished out by private health insurers in the year to March, according to official data released on Friday. But the same data shows the average Australian is paying $470.80 per hospital visit, about $46 more than a year earlier. The average gap for general treatments rose $3 to $61.64 per service. Insurers also covered less for services like accommodation, nursing, medical services and medical devices in the March quarter, compared with the December quarter. Private hospitals - already suffering workforce shortages and rising costs for supplies - say insurers were being unfair to patients by allowing gaps to increase. "Welcome to private health insurance in the modern era, too tricky by half in trying to play people for mugs," Australian Private Health Association chief executive Brent Heffernan said. "If it costs me $10 to provide a service and you pay me $8, I'm $2 out of pocket. "Next year it costs me $15 to provide that service and you pay me $10, so I'm even worse off despite you paying me more than you did last year." Insurers say they are spending $61 more per person from last year to this year. This is despite technology and changing clinical practice meaning people have shorter hospital stays. They laid the blame for higher out-of-pocket claims on specialist doctors, whose consultations cannot be covered by health insurers. "Several trends have been dampening demand for private hospital care, including the high cost to see a specialist doctor in the community," Private Healthcare Australia chief executive Rachel David said. "A 7.7 per cent increase year-on-year is a good result for private hospitals that have had a hard time due to the pandemic and inflation." Almost 12.5 million people in Australia have hospital cover, or about 45 in every 100 people. About 15.1 million have general treatment cover. More than 81,000 people signed up for hospital cover in the first three months of 2025, with the largest increase coming from 40-44 year olds. The data from the financial regulator comes after the collapse of major hospital operator Healthscope after lenders voted to stop support for their parent company Brookfield. Healthscope treats 650,000 patients a year and has 19,000 staff across 37 hospitals in the nation. Insurers say they are optimistic the private system won't crumble. "We have a good supply of private hospital services across most parts of the country, so we are confident people with hospital cover will retain access to high-quality services near their homes," Dr David said. The Commonwealth Bank threw Healthscope a $100 million lifeline while fellow lender Westpac pledged to help the company sell to a new owner. Health insurers are spending more but leaving Australians with higher out-of-pocket expenses, sparking scorn from private hospitals. A record $12.3 billion was dished out by private health insurers in the year to March, according to official data released on Friday. But the same data shows the average Australian is paying $470.80 per hospital visit, about $46 more than a year earlier. The average gap for general treatments rose $3 to $61.64 per service. Insurers also covered less for services like accommodation, nursing, medical services and medical devices in the March quarter, compared with the December quarter. Private hospitals - already suffering workforce shortages and rising costs for supplies - say insurers were being unfair to patients by allowing gaps to increase. "Welcome to private health insurance in the modern era, too tricky by half in trying to play people for mugs," Australian Private Health Association chief executive Brent Heffernan said. "If it costs me $10 to provide a service and you pay me $8, I'm $2 out of pocket. "Next year it costs me $15 to provide that service and you pay me $10, so I'm even worse off despite you paying me more than you did last year." Insurers say they are spending $61 more per person from last year to this year. This is despite technology and changing clinical practice meaning people have shorter hospital stays. They laid the blame for higher out-of-pocket claims on specialist doctors, whose consultations cannot be covered by health insurers. "Several trends have been dampening demand for private hospital care, including the high cost to see a specialist doctor in the community," Private Healthcare Australia chief executive Rachel David said. "A 7.7 per cent increase year-on-year is a good result for private hospitals that have had a hard time due to the pandemic and inflation." Almost 12.5 million people in Australia have hospital cover, or about 45 in every 100 people. About 15.1 million have general treatment cover. More than 81,000 people signed up for hospital cover in the first three months of 2025, with the largest increase coming from 40-44 year olds. The data from the financial regulator comes after the collapse of major hospital operator Healthscope after lenders voted to stop support for their parent company Brookfield. Healthscope treats 650,000 patients a year and has 19,000 staff across 37 hospitals in the nation. Insurers say they are optimistic the private system won't crumble. "We have a good supply of private hospital services across most parts of the country, so we are confident people with hospital cover will retain access to high-quality services near their homes," Dr David said. The Commonwealth Bank threw Healthscope a $100 million lifeline while fellow lender Westpac pledged to help the company sell to a new owner.
Perth Now
2 days ago
- Health
- Perth Now
Insurers accused of 'playing people for mugs'
Health insurers are spending more but leaving Australians with higher out-of-pocket expenses, sparking scorn from private hospitals. A record $12.3 billion was dished out by private health insurers in the year to March, according to official data released on Friday. But the same data shows the average Australian is paying $470.80 per hospital visit, about $46 more than a year earlier. The average gap for general treatments rose $3 to $61.64 per service. Insurers also covered less for services like accommodation, nursing, medical services and medical devices in the March quarter, compared with the December quarter. Private hospitals - already suffering workforce shortages and rising costs for supplies - say insurers were being unfair to patients by allowing gaps to increase. "Welcome to private health insurance in the modern era, too tricky by half in trying to play people for mugs," Australian Private Health Association chief executive Brent Heffernan said. "If it costs me $10 to provide a service and you pay me $8, I'm $2 out of pocket. "Next year it costs me $15 to provide that service and you pay me $10, so I'm even worse off despite you paying me more than you did last year." Insurers say they are spending $61 more per person from last year to this year. This is despite technology and changing clinical practice meaning people have shorter hospital stays. They laid the blame for higher out-of-pocket claims on specialist doctors, whose consultations cannot be covered by health insurers. "Several trends have been dampening demand for private hospital care, including the high cost to see a specialist doctor in the community," Private Healthcare Australia chief executive Rachel David said. "A 7.7 per cent increase year-on-year is a good result for private hospitals that have had a hard time due to the pandemic and inflation." Almost 12.5 million people in Australia have hospital cover, or about 45 in every 100 people. About 15.1 million have general treatment cover. More than 81,000 people signed up for hospital cover in the first three months of 2025, with the largest increase coming from 40-44 year olds. The data from the financial regulator comes after the collapse of major hospital operator Healthscope after lenders voted to stop support for their parent company Brookfield. Healthscope treats 650,000 patients a year and has 19,000 staff across 37 hospitals in the nation. Insurers say they are optimistic the private system won't crumble. "We have a good supply of private hospital services across most parts of the country, so we are confident people with hospital cover will retain access to high-quality services near their homes," Dr David said. The Commonwealth Bank threw Healthscope a $100 million lifeline while fellow lender Westpac pledged to help the company sell to a new owner.
Sky News AU
5 days ago
- Business
- Sky News AU
'No amount of money' could have saved Healthscope during 2024 private health insurance attack, Rachel David declares
There was 'no amount of money' that could have saved Healthscope as it was waging war against private health insurers in 2024, a leader in the medical industry has declared. Healthscope was forced into receivership on Monday after the debt-laden hospital operator was handed from its Canadian owners Brookfield to its lenders earlier this month. Commonwealth Bank of Australia has issued the company a $100m lifeline to ensure all of Healthscope's hospitals will remain open and operate as usual. The collapse follows Healthscope launching an aggressive advertising campaign in 2024 to allege private health insurers were not paying their fair share to fund private hospitals. Private Healthcare Australia's CEO Rachel David on Tuesday hit back at Healthscope when questioned about the operator's campaign on Sky News' Business Now. 'There is no amount of money that health funds or the government could have thrown at Healthscope at that point which would have made up for the terrible business decisions made by Brookfield,' Ms David said on Tuesday. She singled out Healthscope's $5.7b sale, which was regarded as overvalued, in 2019 to Brookfield and the decision to sell 22 hospitals for $2.5b to foreign investors before leasing them back to the operator for high rents. 'In a situation like that, there is no amount of money that health funds could have put their hands on that would have resulted in a different outcome,' Ms David said. 'We have to be mindful that … consumers have got to be able to afford their premiums. 'The advertising campaign was a misstep, but now that we're in a situation where new owners can take over ... myself and the private health insurance industry is incredibly optimistic that the private hospital sector will come through this and be able to deliver much more modern and attractive models of care for our patients.' Healthscope faced troubles during the pandemic when patients halted their elective surgeries, leading to major downturns for private hospitals. The uptick in at-home treatment, which was bolstered by private health insurers, also came as a sting to Healthscope as lengthy hospital visits became less necessary. The company has also been marred with controversies, including the death of a two-year-old boy last September, a cancer patient having the wrong side of his colon removed in 2019 and the death of a 17-year-old boy suffering from anaphylaxis in 2021. Healthscope's CEO Tino La Spina told reporters on Monday he is confident there will be a buyer to take over the business. 'I think we're confident that there is interest in taking the Healthscope business as a whole. We have 10 non-binding indicative offers,' Mr La Spina said. 'Some are for the whole (business) and others potentially could include the whole (business) under certain circumstances. That is the focus.' Health Minister Mark Butler said Labor will not bail out the embattled healthcare company amid its financial troubles. 'We remain steadfast in our view that an orderly sales process that maintains the integrity of the entire hospital group will provide the best outcome for patients, staff, landlords and lenders,' Mr Butler said. However, he did stress the hospitals operated by Healthscope 'remain a critical part of our healthcare system'. 'The government does not want any of these important assets to be put in jeopardy to satisfy international investors,' Mr Butler said.
News.com.au
5 days ago
- Business
- News.com.au
Healthscope downfall blamed on ‘terrible business decisions' by Brookfield Corporation
Private Healthcare Australia CEO Rachel David discusses the time when Healthscope launched an advertising campaign targeting private health insurers claiming they weren't paying their fair share to private hospitals. 'There is no amount of money that health funds or the government could've thrown at Healthscope at that point which would've made up for the terrible business decisions made by Brookfield,' Ms David said. 'The advertising campaign was a misstep, but now that we're in a situation where new owners can take over, I think myself and the private health insurance industry is incredibly optimistic that the private hospital sector will come through this.'
News.com.au
5 days ago
- Business
- News.com.au
Private health sector estimated to come out in ‘much better shape' following Healthscope crisis
Private Healthcare Australia CEO Rachel David says there has been 'tremendous growth' in the number of Australians using private health insurance. Ms David claims around 15 million Australians are equipped with the service. 'The reason it continues to grow is because of some of the struggles that the public hospitals have had … and people desire to have more control over when they have treatment and by whom,' Ms David told Sky News Australia. 'We think that the private hospital sector will emerge from this crisis in a much better shape than it was previously.'
