Australian Health Service Alliance (AHSA) and Adventist HealthCare Limited (AHCL) have reached a landmark three-year funding agreement that commenced on November 1.
AHSA is the largest private healthcare buying group in Australia, helping not-for-profit insurers provide the highest-quality service possible. AHCL operates Sydney Adventist Hospital and The San Day Surgery Hornsby.
As part of the agreement, Adventist HealthCare will adopt AHSA’s new Business Partnership Agreement and Cost Weight of One (CWO) Payment Model—a contemporary contractual agreement with an enhanced payment model that reflects the cost base of the hospital. Both parties believe the funding agreement financially supports AHCL’s delivery of innovative models of care and investment in modern medical technology, while helping AHSA member funds keep private healthcare affordable amidst the rising cost of living.
AHCL CEO Brett Goods said, “Our strongest desire was to ensure patients of AHSA member funds continue to access the outstanding services provided by Sydney Adventist Hospital and San Day Surgery Hornsby. We are extremely pleased to have reached a fair and sustainable agreement with AHSA.
“Adventist HealthCare has been providing comprehensive care to this community for over 120 years, prioritising nurturing the body, mind and spirit. Since our inception, our progressive approach has ensured we have remained at the forefront of medicine and healthcare delivery.
“Despite the challenges currently destabilising the private hospital sector, our experience with AHSA through this contract renewal demonstrates that progress is achievable when we find common ground, with the ultimate aim of benefiting the community we serve. We remain committed to improving healthcare access by driving efficiencies and partnering with like-minded providers to develop innovative models of care.
“Sustainable funding agreements, like this one with AHSA, ensure we can continue to provide patients with certainty, access and quality care,” Mr Goods added.
AHSA CEO Andrew Sando said the announcement demonstrates how all sides of Australia’s world-class private healthcare system can continue to work together to achieve the best possible result for patients.
“As a partner to all health stakeholders—funds, hospitals, practitioners and patients—AHSA’s vision is for all sections of health to work constructively and more efficiently together towards more affordable, accessible quality care,” he said.
“Our long-term agreement with Adventist HealthCare provides certainty and reassurance to doctors and patients of AHSA member funds that they can continue to access quality healthcare into the future. Both organisations have worked constructively to achieve a sustainable outcome that balances the needs of the hospitals and the long-term affordability of private health cover with our member funds.
“AHSA is excited to continue to collaborate and innovate with Adventist HealthCare over the long term to ensure greater access to the best models of care. Our organisations share a mutual, patient-first focus and we look forward to the surety AHSA members and doctors have in accessing Adventist HealthCare’s outstanding hospitals and quality services. We are sure that this is just the first of many exciting opportunities between AHSA and Adventist HealthCare.”
