AMA urges BUPA and Ramsay to get back to negotiating table

The AMA calls for more oversight of contract negotiations following a stalemate between Ramsay Health Care and BUPA to protect private patients’ out-of-pocket costs.

The AMA is disappointed that contract negotiations for Ramsay Health Care hospital services to BUPA members have ended in stalemate with Ramsay Health announcing that it has issued a notice to BUPA to terminate the agreement with BUPA.

Dr Khorshid urged both parties to get back to the negotiating table to work out a fair deal, one that delivered a reasonable return for all parties and recognised the rising costs of providing quality care.

“When the news broke, the AMA publicly raised concerns that patients could face higher out-of-pocket hospital costs, compounded by current BUPA rules that prevent patients being treated in a non-contracted hospital from accessing the BUPA Medical Gap Scheme,” he said.

AMA can now advise that BUPA has subsequently confirmed that, for now, payments to providers will not change if Ramsay Health Care goes out of contract with BUPA. BUPA will continue to offer the Medical Gap Scheme rates to providers. 

BUPA advises that it also will maintain the current rates it pays Ramsey Health Care to encourage it not to charge customers out-of-pocket costs, although any decision on whether this is acceptable will be a decision for Ramsay Health Care. 

“More broadly, the next government needs to look at greater oversight of these types of contract negotiations to ensure that patients don’t face higher costs or find it more difficult to access private hospital services locally,” Dr Khorshid said.

“That’s one of the reasons why the AMA is proposing a Private Health System Authority that can ensure a level playing field and ensure our private health system works to support patients to access high quality and affordable care.”