A new national funding agreement between the Australian Health Service Alliance (AHSA) and private hospital operator Healthe Care will tie hospital payments to patient-reported outcomes, marking a shift in how private healthcare services are funded in Australia.
The agreement introduces a model where Healthe Care hospitals can receive additional payments if patient experience and outcome data show continuous improvement. The initiative uses AHSA’s Voice of the Patient program, which collects and benchmarks patient feedback to assess care quality.
“When patients go to a hospital, they expect high-quality care. Healthe Care is showing an ongoing commitment to continuous improvement in patient outcomes, and we are delighted to be partnering with them on this new, world-class solution,” AHSA chief executive officer Andrew Sando said.
“Our agreement with AHSA demonstrates how two crucial parts of our private healthcare system can collaborate and collectively innovate to achieve better outcomes for patients,” Healthe Care CEO Matt Hanrahan said.
The agreement comes at a time when private healthcare providers are under increasing pressure to balance quality care with affordability. AHSA, one of Australia’s largest private healthcare buying groups, negotiates contracts with hospital operators on behalf of not-for-profit insurers.
“As a partner to all health stakeholders – funds, hospitals, practitioners, and patients – AHSA hopes to cooperate with more of our hospital partners to strengthen services, address costs and achieve optimal outcomes,” Sando said.
Healthe Care operates 17 private hospitals in New South Wales, Victoria, and Tasmania, employing nearly 4,600 staff and working with over 3,000 healthcare professionals. Hanrahan said the new model will help ensure long-term sustainability in the sector.
“Sufficient and innovative funding agreements, such as this, will help ensure the long-term sustainability of our sector, allowing us to continue delivering high-quality care to thousands of patients throughout our network of urban and regional private hospitals,” Hanrahan said.
