Medibank Private chief executive George Savvides says ”Australia cannot afford to let healthcare costs get out of control”. Photo: Mal Fairclough
Medibank Private managing director George Savvides has said Australians overpay for common surgeries such as hip replacements and caesarean sections, as the health insurer ramps up its campaign to put a lid on private hospital costs before its $4 billion-plus float.
Across the $19 billion health insurance industry the cost of medical claims is rising faster than revenue from membership premiums. As the government-owned insurer approaches its December initial public offering, Mr Savvides has made no secret of his goal to rein in the amount it pays to private hospitals for care.
Medibank’s ability to put the squeeze on hospitals as a way to boost future earnings is expected to be a key selling point in the insurer’s prospectus, which is due to be lodged with the corporate regulator early next week.
Mr Savvides has been meeting potential investors this week and will travel overseas next week to promote the float, which banks have said could reap between $4.1 billion and $5.7 billion.