CALVARY Hospital group has announced that its threatened termination of its hospital contract with Defence Health , which was due to take effect on November 20, has been suspended.
The parties are talking again after Defence Health had written to shocked fund members saying the Calvary hospital network has given them the flick.
Defence Health originally said the parties couldn’t agree on a future contract because Calvary was proposing “unreasonable increases”, significantly higher than increases the fund had agreed with other private hospitals.
They brought in the Private Health Insurance Ombudsman, but Calvary wasn’t for turning and responded by terminating Defence Health’s agreements with the Calvary John James Hospital, Deakin, and the Calvary Private, Bruce, from November 21.
Given the huge private-health clout Calvary enjoys in the ACT, it was problematical for Defence Health members and likely to expose them to significant out-of-pocket expenses.
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