Ramsay Health Care Limited refers to its ASX announcement dated 4th May 2022, advising that Ramsay Australia had given a notice to terminate the Hospital Purchaser Provider Agreement (HPPA) between itself and health insurer Bupa. Ramsay advises that the parties have been unable to reach a resolution on key elements of a new contract and as a result the contract between the two parties is now terminated. Following termination both contractual and agreed transitional arrangements apply for a period of at least 60 days.
Bupa insured patients will then be required to pay an upfront payment on admission, being the difference between the statutory default benefit Bupa is required to pay and Ramsay's hospital treatment charges. Ramsay is communicating with impacted patients to keep them informed and provide them with options, which in light of the portability rules in the Private Health Insurance Act include changing health funds.