Like most hospitals and insurers, Bupa and Ramsay Health Care have a contractual agreement that normally includes an agreed annual indexation rate. This indexation, paid by the insurer, helps the hospital cover yearly increases in wage and supply costs.
Unfortunately, Bupa and Ramsay Health Care have not been able to reach an agreement about the new annual indexation rate, so the current contract will terminate on 2 August 2022.
During the COVID-19 pandemic, private hospitals have taken enormous measures to protect patients and staff—such as increasing PPE equipment, cleaning protocols and infection prevention training for staff. Of course, each of these measures have involved significant costs and we continue to protect our patients and staff.
Bupa’s offered rate of indexation is well below inflation and fails to cover these cost increases. Being unable to agree on a rate means Bupa patients at Ramsay hospitals will be required to cover the shortfall as an additional out-of-pocket cost.
Ramsay has successfully collaborated with all other private health insurers, so this change will only impact Bupa patients.
We want Bupa patients to be prepared for these changes before they impact their upcoming admission at a Ramsay Health Care hospital. We’ve compiled all the information currently available about this change and the options for Bupa members here.