St Vincent’s chief executive,Chris Blake,said NIB had refused to make a fair offer that recognised the rising costs of providing hospital care,leaving St Vincent’s no choice but to end the agreement,which would affect thousands of patients.
“This is not a decision we take lightly. This is the first time in our 176-year history that St Vincent’s has given notice to a private health fund that we intend to end our agreement. It’s an indication of how seriously we treat this matter,” he said.
NIB chief executive and managing director Mark Fitzgibbon said in a statement that the insurer was “sympathetic to St Vincent’s financial position” and had made a “very fair and reasonable offer”.
“It’s disappointing they have elected to argue their position publicly. But we will continue discussions with them,noting our partnership has several months remaining.”
Failure to reach an agreement means NIB-insured patients who book procedures or treatments after October 3 face paying hundreds if not thousands more,including chemotherapy and cancer surgery.
The extra out-of-pocket costs could run well into the thousands for a multiple-night hospital stay at one of St Vincent’s 10 hospitals,which include St Vincent’s Private Hospital Sydney in Darlinghurst and The Mater in North Sydney.
Australian Medical Association President Dr Stephen Robson said the situation was a slap in the face to patients who had paid their premiums for private health insurance and expected to be able to use it.