ACCC to block Catholic Health Australia’s private hospital members from boycotting major insurers

Headshot of Cheyanne Enciso
Cheyanne EncisoThe Nightly
CommentsComments
Catholic Health represents 63 private hospitals across the country and counts St John of God Health Care, Southern Cross Care and Mercy Place among its members.
Camera IconCatholic Health represents 63 private hospitals across the country and counts St John of God Health Care, Southern Cross Care and Mercy Place among its members. Credit: sasint/Pixabay (user sasint)

The competition regulator intends to block Catholic Health Australia’s private hospital members from collectively boycotting private health insurers like HBF, Medibank and Bupa if funding negotiations fail.

Catholic Health represents 63 private hospitals across the country and counts St John of God Health Care, Southern Cross Care and Mercy Place among its members.

The peak body for Catholic health and aged care services in August sought authorisation from the Australian Competition and Consumer Commission to collectively boycott HCF, HBF, Medibank, Bupa, and NIB in the event negotiations for funding arrangements fail.

But the regulator on Thursday said it was “not satisfied that there are likely public benefits arising from this conduct that would outweigh the likely public detriment”.

“However, the ACCC proposes to grant authorisation for Catholic Health Australia members to collectively bargain hospital funding arrangements with private health insurers and other funding organisations,” it said.

Read more...

It comes as private health insurers across Australia have been engaged in a war of words over funding for private hospital operators, which say the rising cost of providing care could force many to close without extra funding.

Insurers have countered they would have to lift insurance premiums to cover the extra contributions, potentially putting coverage out of reach of Australians already labouring under rising cost-of-living pressures.

Australia’s second-biggest private hospital operator Healthscope just last month broke its contracts with Bupa and the Australian Health Services Alliance over their “refusal” to maintain funding for its hospitals.

ACCC deputy chair Mick Keogh on Thursday said it recognised the challenges faced by the private hospital sector, particularly in the aftermath of the pandemic.

“However, collective boycotts have the potential to cause significant harm to not only the target business, but businesses participating in the boycott,” he said.

“In this case, we are concerned that the collective boycott could create disruption for health fund members seeking treatment in member private hospitals.”

But the ACCC said it intended to grant authorisation for Catholic Health members to collectively boycott large suppliers if negotiations fail.

“Private hospitals and private health insurers rely on each other,” Mr Keogh said.

“However, in the case of suppliers of other goods and services, we consider that the size thresholds of targets and their broad international customer base mitigate any substantial detriment arising from that conduct.”

Get the latest news from thewest.com.au in your inbox.

Sign up for our emails