A long-running dispute between the Calvary group of hospitals and health insurer Medibank Private has ended with the signing of a new three-year deal.
An agreement between the two parties was due to expire tomorrow, meaning Medibank Private customers may have been charged additional fees for using Calvary hospitals.
The insurer last week released a list of 165 “Adverse Events” it would no longer cover, which included falls in hospitals and readmission to hospital as a result of a wound infection.
Calvary refused to accept the “quality and safety” measures demanded by Medibank Private as part of contract renewal negotiations.
In a joint statement by Medibank’s general manager Dr Andrew Wilson and Calvary national’s chief executive officer Mark Doran, the two parties said the terms of the new agreement were confidential but it would deliver better healthcare outcomes and affordability.
“We recognise that this was a robust and challenging negotiation,” the statement said.
“However, we’ve reached an agreement that will deliver enhanced clinical safety, quality care and affordability for members and patients.
“It is good for both our organisations and all other stakeholders, be they staff or doctors.”
Calvary Health Care runs 15 public and private hospitals across South Australia, the Australian Capital Territory, Tasmania, Victoria and New South Wales.