Health insurers' 'aggressive' tactics causing closures, private hospitals say

Health insurers accused of 'aggressive' and 'almost bullying' tactics in private hospital dealingsBy business reporter Alison BranleyTopic:Insurance2h ago2 hours agoTue 28 Apr 2026 at 5:00amLoading...In short:Private hospitals are blaming large insurers for driving down prices and using "aggressive" negotiating tactics, leading to the closure of services.However, the health insurance peak body says there are more private hospitals now than 10 years ago.What's next?Private hospitals are calling on the ACCC to intervene, and for a mandatory code of conduct for insurers.abc.net.au/news/health-insurers-aggressive-tactics-accusations-private-hospitals/106598450Link copiedShareShare articleA former Bupa executive has accused health insurers of using "almost bullying" tactics in their negotiations with private hospitals.As private hospitals and units close around the country, the industry has pointed much of the blame at large insurers using negotiations to drive down prices and reduce the sustainability of hospitals, particularly smaller players.It comes after the ABC revealed the stifling nature of contracts between major health insurer Bupa and private hospitals, and some of its negotiating tactics to get agreements in place.Private hospitals say it is not just Bupa engaging in problematic behaviour, with other insurers also accused of misusing their market power in contract negotiations with hospitals.Health insurer Bupa accused of anti-competitive behaviourHealth insurer Bupa has been accused of anti-competitive behaviour in its dealings with private hospitals.The Australian Private Hospitals Association (APHA) said it was particularly concerned by the use of "take it or leave it" low-ball offers from insurers in contract negotiations.However, the body representing insurers, Private Healthcare Australia (PHA), says insurers have continued to increase payments to hospitals.Insurance profits rise as private hospitals closeThere have been about 80 hospital closures since 2020, Department of Health figures indicate, and the APHA estimated a further 80 hospital services have also closed.While some are down to natural turnover, the industry argues the closures have been accelerated by growing power imbalances in the market, combined with the failure of Medicare rebates to keep up with costs.Health insurers made a combined $2.1 billion in 2024–25.In the previous financial year they made $2.2 billion before tax. The graph below shows private hospital profits shrinking, and then losses before tax.David du Plessis was the head of hospital partnerships at Bupa in 2022 and now represents small private hospitals in contract negotiations.He has described "aggressive behaviours" during his negotiations with health insurers that were "almost bullying".David du Plessis was the manager of hospital partnerships at Bupa, (ABC News: Keely Johnson)"In many instances, [it's] to try and force them to accept contracts that are probably not really commensurate with the inflation costs that the hospital's experiencing," Mr du Plessis said."You're putting these little small providers against these big insurers and these big insurer groups and buying groups that have, in many instances, 20 per cent of the market share."They really don't have any ability to extract reasonable rates from that."Healthscope collapses into receivershipAustralia's second-largest private hospital operator, which runs 37 hospitals across the country and employs about 19,000 people, has…

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