30
Aug 2024
Ramsay Hospitals to Deny Access to Private Patients
Published in News on August 30, 2024
Millions of patients could face higher medical costs as Ramsay Health Care, Australia’s largest private hospital operator, plans to reject deals with insurers that don’t cover larger cost increases. The company, which runs 70 hospitals, has paused expansion plans due to low returns. CEO Craig McNally emphasized the profit shift favouring health insurers and warned that even insured patients opt for public healthcare due to substantial out-of-pocket expenses. Ramsay calls for insurers to share more of the financial burden to offset these rising costs.
Ramsay Health Care's CEO, Craig McNally, stressed that the company will renegotiate with insurers if future cost projections change significantly. Ramsay will refuse to work with those insurers if no satisfactory deal is reached. Terminating agreements with private health insurers is becoming more common, leaving patients with significant out-of-pocket expenses if they wish to use those hospitals. McNally emphasized the need for fairer agreements to cover rising costs and prevent further financial burdens on patients.
Several private hospital providers, including St Vincent's and UnitingCare Queensland, threaten to end contracts with insurers over rising costs, potentially leaving patients with higher out-of-pocket expenses. Last year, Ramsay Health Care and Bupa customers faced this issue when the companies couldn’t agree on cost-sharing. While Ramsay is not currently in disputes with insurers, CEO Craig McNally warned this could change. As Health Minister Mark Butler reviews the sector, hospitals seek higher insurer payments, while insurers argue they shouldn't be responsible for covering inefficiencies in the private healthcare system.
Ramsay Health Care, one of Australia’s leading private hospital operators, saw its shares drop by over 7% to $41.30 after warning that patient margins would take years to recover to pre-pandemic levels. Rising wage costs have created significant financial risks. The company reported a lower underlying profit of $270.6 million compared to the previous year. Despite this, Ramsay remains optimistic about future earnings, though more patients are turning to public hospitals due to high out-of-pocket expenses. Ramsay’s global operations, particularly outside Australia, continue to face challenges.
For patients visiting Melbourne, finding suitable hospital stay accommodation is critical. Melbourne offers furnished accommodation options close to major hospitals, including serviced apartments and long-stay options that provide convenience and comfort for patients and their families. These accommodations, located near facilities like St. Vincent's and Ramsay’s hospitals, can help ease the burden of extended stays, ensuring proximity to care while minimizing travel.
![A Medicare bulk-billed urgent care clinic, established by the federal government to help reduce emergency department pressures, has unexpectedly closed in Bundaberg, Queensland, less than a year after opening. Located 400 kilometres north of Brisbane, this clinic was one of 75 launched across Australia since June 2023 to redirect non-life-threatening cases away from hospitals, allow emergency departments to focus on the most critical cases.
Since its opening in November last year, the Bundaberg Urgent Care Clinic (UCC) has provided care to hundreds of patients. However, it unexpectedly closed its doors on October 22, with plans to reopen a week later. A sign now indicates that it is "closed until further notice." This makes the Bundaberg UCC the only one of its kind in Australia to shut down.
Patient Sue Hackett expressed her surprise upon arriving at the clinic on Tuesday when she found it closed. “I looked on the website, and it actually showed it was open... I've come here assuming they're open,” Ms. Hackett said.
Julie Sturgess, chief executive of the region's public health network Country to Coast, told the ABC that she could not provide specific details regarding the reasons behind the abrupt closure of the Bundaberg Urgent Care Clinic. “There are ongoing negotiations with the provider of that service,” Ms. Sturgess stated.
In response to the closure, a free phone service called Connect2Care has been established, allowing callers to speak with a registered nurse for their urgent care needs. “If further care is required, such as seeing a GP, we can organize an appointment either with your regular GP or a phone or video consultation with an online GP through that service,” Ms. Sturgess explained.
Additionally, some GP practices in Bundaberg are extending their hours to accommodate extra appointments. The Bundaberg UCC was operated by the Indigenous Wellbeing Centre (IWC), a non-profit Aboriginal-controlled health organization that serves the entire community. The IWC has declined to comment on the closure.
Federal Health Minister Mark Butler informed the ABC that services at the Bundaberg Urgent Care Clinic are expected to resume shortly.
The Australian Medical Association Queensland (AMAQ) has expressed ongoing concerns regarding the viability of the federal government's urgent care clinic program. AMAQ President Nick Yim emphasized that these clinics often duplicate services already provided by GP clinics. “We believe the federal funding for these clinics would be better invested in existing general practices around the state,” Dr. Yim stated.
Sue Hackett shared that she was able to secure a same-day appointment at a GP clinic, but it would come at a cost. “I just want to go to a place where I can get sorted with my medical condition, plus I don’t have to pay,” she expressed, highlighting the challenges many face in accessing affordable healthcare.
Tim Spargo, the owner of the pharmacy located next to the Urgent Care Clinic, emphasized the critical role the clinic has played in the community. He noted that when travellers forgot their chronic condition medications or prescriptions, he could direct them to the UCC for assistance. “In the 11 months that it's been open, it has really served a vital purpose … it has taken that pressure off [emergency departments],” Mr. Spargo stated, expressing the urgent need for such services in the area.
"What's clear is that federal Labor is unable to deliver on their commitments, and the people of Bundaberg and the surrounding district, who desperately need additional services, have been let down," he said. "No matter who you talk to, whether it's the GPs themselves or others, they are just overrun with work, and what should be a godsend is now closed."
In response, Mr Butler reiterated that patients can still receive assistance through the phone line, which will "help ensure the Bundaberg community's urgent care needs continue to be met."
Meanwhile, newly elected Queensland Premier David Crisafulli has pledged an additional half a billion dollars to reduce ramping across the state to below 30 per cent over the next four years. Queensland Health data from April to June this year indicates that 44.7 per cent of patients were not transferred off ambulance stretchers within 30 minutes. This issue is particularly pressing for Bundaberg Hospital, which has been struggling with high demand and limited resources. Crisafulli also promised to recruit 34,200 additional health workers by 2032.](https://c3eeedc15c0611d84c18-6d9497f165d09befa49b878e755ba3c4.ssl.cf4.rackcdn.com/photos/blogs/article-832-1730723697.jpg "Bundaberg Urgent Care Clinic Closes Abruptly, Leaving Patients in Uncertainty")
