News & Trends - MedTech & Diagnostics
Healthscope and Bupa strike last-minute deal amid rising concerns over private hospital sustainability

Healthscope and Bupa have finally reached a two-year in-principle agreement, ensuring that Bupa patients can continue to receive care at Healthscope hospitals nationwide without incurring any additional out-of-pocket charges.
This deal comes amid increasing concerns within the private hospital sector, which has been vocal in its criticism of the Labor government’s incremental reforms that fail to address core issues impacting hospital viability.
Dhruv Gupta, Healthscope’s Chief Commercial Officer, highlighted the importance of the agreement, saying “This new agreement means we can continue to care for Bupa members in our hospitals across Australia, without the need for additional fees. We look forward to continuing our partnership with Bupa, working constructively together to deliver outstanding and efficient patient care, and collaborating on initiatives to support the long-term sustainability of the sector.”
Healthscope secured emergency funding from its private equity owner, Brookfield, last year. Now, faced with escalating wages, the healthcare provider acknowledged it is in a precarious position, emphasising the urgent need for support from health insurers, the government, landlords, and lenders to sustain its operations.
Bupa Health Insurance Acting Managing Director Kate Williams echoed this sentiment, emphasising the shared commitment to delivering affordable, high-quality, and innovative care.
“Our priority throughout negotiations has been ensuring healthcare remains affordable for our customers while also acknowledging the cost pressures hospitals are facing, and supporting Healthscope to continue to deliver high-quality care, in a sustainable way,” Williams said.
Despite this positive outcome, Gupta pointed out that Healthscope’s negotiations with other insurers remain a work in progress.
“Healthscope now has agreements with four of Australia’s five major insurance groups – Bupa, Medibank, NIB, HCF. Unfortunately, our notice of contract termination with the Australian Health Service Alliance (AHSA) funds remains in place, effective from 4 March 2025,” he said.
“We have agreed to meet with the Ombudsman and Healthscope in the coming weeks, and are hopeful that we can reach a positive outcome. We remain committed to the values of affordability, accessibility and quality,” AHSA CEO Andrew Sando said.
Gupta expressed disappointment at the AHSA’s reluctance to address the rising costs of providing private hospital care for its members.
“It’s disappointing that the AHSA has so far declined to recognise and address the increasing costs of providing private hospital care for their members. Nevertheless, we remain ready to work with the AHSA, to reach an agreement that acknowledges the vast funding gap that currently exists,” he added.
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