Medibank Private is at risk of becoming an industry pariah as a result of its current approach to hospital contracting, according to the Australian Private Hospitals Association (APHA).
“Medibank has said to the media that it wants to use its market power to ‘flex its muscles’ in negotiations with private hospitals,” according to APHA CEO, Michael Roff. “The reality is that by trying to dictate terms unilaterally, they are behaving more like a school-yard bully than a responsible funder of health services.”
“We have been advised that Medibank is unfairly refusing to negotiate with hospitals. This “take it or leave it” approach is certainly unreasonable and arguably unconscionable, given Medibank’s market power. It will not help the thousands of Australian patients who are their customers.”
One aspect of the current Medibank approach is...