The National Association of Specialist Obstetricians and Gynaecologists (NASOG) expresses deep concern over the closure of Healthscope’s private maternity wards in Hobart and Darwin, a devastating blow to women’s healthcare in these regions. This decision highlights the growing instability in Australia’s private healthcare sector, exacerbated by the financial pressures facing private hospital operators.
These closures occur against the backdrop of a potential takeover of Healthscope by a consortium including health insurer BUPA, raising alarms about the creeping influence of insurers over clinical decision-making.
NASOG strongly warns that such a move could accelerate the introduction of a managed care model—where insurers dictate treatment pathways, limit patient choice, and reduce the autonomy of doctors.
"The closure of these maternity services underscores the fragile state of private obstetric care and foreshadows a dangerous shift towards insurer-controlled managed care," said NASOG President, A/Prof Gino Pecoraro.
"When a health insurer owns hospitals, there is a real risk that business priorities will override patient care, leading to restricted access, cost-driven decision-making and erosion of the high-quality, patient-centred care that Australians deserve."
Healthscope’s financial difficulties, including significant debt pressures, have made it a target for acquisition, but the entry of BUPA into hospital ownership could have far-reaching consequences for private healthcare delivery. In the United States, insurer-controlled managed care models have resulted in delayed treatment, denial of care, and a focus on cost-cutting over patient outcomes. Australia cannot afford to follow this path.
The loss of private maternity services in Hobart and Darwin will push more expectant mothers into already overburdened public hospitals, straining resources and limiting options for women who seek private obstetric care.
NASOG urges government policymakers, healthcare regulators and the broader medical community to scrutinise any acquisition of Healthscope by any group that include a private health insurer and to take urgent action to protect the integrity of private maternity care in Australia.
"The risk of managed care infiltrating Australia’s private system is no longer theoretical—it is happening before our eyes. If health insurers dictate care models, the doctor-patient relationship will suffer, and the choices available to women during pregnancy and childbirth will diminish," said A/Prof Pecoraro.
"We call on the Federal Government to intervene and ensure that private health insurers do not control the very hospitals they are meant to fund."
NASOG remains steadfast in its commitment to advocating for a private healthcare system that prioritises patients, preserves clinical independence, and maintains the highest standards of care for Australian families.
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