UnitingCare Queensland issues notice of termination to Australian Health Service Alliance 

UPDATE: We are pleased to inform you that UnitingCare Queensland and Australian Health Services Alliance have now reached consensus for a new funding agreement. Find out more.

Following six months of negotiations, UnitingCare Queensland (UnitingCare) has been unable to reach an agreement with Australian Health Service Alliance (AHSA). As a result, UnitingCare has given notice to terminate its existing agreement with AHSA. 

UnitingCare, which operates The Wesley Hospital and St Andrew’s War Memorial Hospital in Brisbane, Buderim Private Hospital on the Sunshine Coast and St Stephen’s Hospital in Hervey Bay, will continue to negotiate a new agreement with AHSA by 21 November 2024. After which, if an agreement cannot be reached, UnitingCare will end its agreement with AHSA and its member health funds.  

Throughout negotiations, UnitingCare has had a clear objective – to reach a fair and sustainable agreement that provides adequate funding to allow the continued provision of quality healthcare for our patients and recognises the impact of rising costs on providing this care.   

UnitingCare has a 75-year history of owning and operating not-for-profit hospitals. We have had agreements with health funds since they were introduced in 1995, and in that time UnitingCare has never issued a notice of termination and maintains agreements with all other major Australian health insurers.  

UnitingCare CEO, Craig Barke said, “We are disappointed to have reached this point in negotiations as we have always remained focused on achieving a fair and sustainable agreement with AHSA member funds. The decision to terminate our contract has been a difficult one.   

“It is openly recognised that the pressures on our industry are significant, manifesting in a Federal Government private hospital review determining the viability of the sector. Like all private hospitals, we are facing increased costs in areas including wages, technology, food, energy and maintenance. Now more than ever, we need to ensure our sustainability so we can continue to provide high quality care for our patients.  

“As a hospital group, we are focused on driving efficiencies and reshaping models of care to meet the evolving needs of those we care for. We require funding agreements which financially support innovative care in our hospitals and return patients to their homes as soon as clinically appropriate,” he said.  

Importantly, UnitingCare wants patients of AHSA member funds to be prepared for potential impacts to their upcoming admission at a UnitingCare hospital.   

“We are committed to continuing negotiations throughout the termination period in hope of reaching agreement. However, if we are unable to do so, following a transitional period, additional out-of-pocket costs will apply for patients of AHSA member funds when attending a UnitingCare Hospital,” Mr Barke said.   

UnitingCare operates four not-for-profit private hospitals in Queensland — The Wesley Hospital, St Andrew’s War Memorial Hospital, Buderim Private Hospital and St Stephen’s Hospital, Hervey Bay, and provides a range of other aged care and community services through our Family and Disability Services, Lifeline Queensland, BlueCare, and Australian Regional and Remote Community Services (ARRCS) in the Northern Territory.   

For more information including a range of Frequently Asked Questions for patients and customers of AHSA member funds, please visit https://www.unitingcareqld.com.au/AHSAupdate.