Dear Medibank Member,
I write to you today to clarify some of the misleading and inaccurate statements that Medibank has made recently.
What has Medibank done?
It has terminated its Agreement with Calvary.
As a result, Medibank will pay less for the treatment its members receive at a Calvary Hospital.
In simple terms this means that from September 1, subject to transitional arrangements for some members, Medibank will pay less for its members to be treated at a Calvary Hospital than it did under the Agreement it terminated. It will pocket the difference.
Medibank’s premiums for members will not change, however, if they are Calvary patients, they will pay more for their treatment.
Why is Medibank doing this?
Medibank has said it is forcing improvements in safety and quality.
In reality, the recently privatised Medibank has decided to embark on a course to maximise shareholder return at the cost of its members.
AMA President, Professor Brian Owler, has stated:
“This issue has nothing to do with quality. (Medibank) are using the cloak of quality to cut costs, to not pay for treatments and procedures, and this is going to put an enormous strain on our hospital system – not just in terms of the private system but the public system as well.”
What has Calvary done?
We are standing up for better patient safety and quality of care.
We believe that penalising hospitals and clinical staff for complications that are not preventable creates a culture of blame and distrust, which is in direct conflict with a just, open culture focussed on improvement.
Calvary’s view is supported by our doctors, the Australian Medical Association, and the Australian Commission on Safety and Quality in Health Care.
What can Medibank and ahm members do?
We encourage you to contact Medibank on 1300 756 959 for Medibank members and 13 42 46 for ahm members, to find out exactly how your cover will be affected and to voice your concerns.
For all other health fund members
No other health fund has taken this action and if you hold a policy with another fund you should experience no impact.
A proud history
Calvary is a Catholic, charitable, not for profit, mission based organisation that has provided high quality health, aged and community based care to generations of Australians since 1885.
We do not pay dividends as we have no shareholders. Any surplus we make is reinvested into improved care or services.
Safety and quality of care of our patients and staff is the heart of our Mission to serve all who are ill, but especially the aged, infirm and dying.
We believe this disagreement can be resolved by good faith discussions between us and we remain willing to do so.
For further information, please read Why Calvary could not accept Medibank Private’s Terms of Contract
The Hon. ?Jo??hn Watkins AM.