A new three-year funding agreement between Adventist HealthCare Limited and the Australian Health Service Alliance (AHSA) came into effect on Nov. 1, aiming to strengthen access to private healthcare for insured patients.
The partnership introduces AHSA’s Business Partnership Agreement and Cost Weight of One (CWO) Payment Model, a funding structure designed to align hospital payments with operating expenses.
Adventist HealthCare, a not-for-profit entity managed by the Seventh-Day Adventist Church, operates Sydney Adventist Hospital, New South Wales’s largest private hospital, along with The San Day Surgery Hornsby.
The agreement is expected to support the financial stability of Adventist HealthCare while helping AHSA’s member funds manage private healthcare affordability amid rising costs.
Both organisations said the agreement would enable investments in advanced medical technology and innovative healthcare delivery methods.
Brett Goods, CEO of Adventist HealthCare, said the partnership ensures continuity of care for patients covered by AHSA member funds.
“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,” he said.
He emphasised that sustainable funding arrangements like this are critical to maintaining high-quality healthcare access.
The agreement comes as Australians face significant increases in out-of-pocket medical expenses.
A report by Money.com.au revealed that gap payments for private hospital services have risen by 71% over the past five years, far outstripping the growth in hospital costs and insurance contributions.
The average gap for disclosed medical costs increased from $99 in 2019 to $135 in 2024, while undisclosed expenses climbed from $418 to $685. Over the same period, health insurance premiums rose by 15.1%, further straining household budgets.
AHSA CEO Andrew Sando said the agreement reflects the potential for cooperation among key players in the private healthcare system.
“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,” he said, adding that the collaboration between stakeholders is essential for making private healthcare more affordable and accessible.
