'Fair deal' shows way for private healthcare

Adventist HealthCare CEO Brett Goods says patients can expect continued "certainty, access and quality care" after the not-for-profit group secured a landmark three-year funding agreement.

The deal with Australian Health Service Alliance (AHSA) will cover treatment at Sydney Adventist Hospital – New South Wales' largest private facility – and The San Day Surgery Hornsby.

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.

"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," Mr Goods said. 

"We are extremely pleased to have reached a fair and sustainable agreement with AHSA."

Both parties believe the deal, which started in November 2024, financially supports Adventist HealthCare's innovative models of care and investment in modern medical technology, while helping AHSA member funds keep private services affordable amid the rising cost of living. 

"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," Mr Goods said.

"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."

Sydney Adventist Hospital is New South Wales' largest private facility

The agreement comes at a time when private hospitals are battling soaring operating costs, while health insurers are enjoying record profits as premiums rise.

AHSA is the largest private healthcare buying group in Australia, helping not-for-profit insurers provide the highest-quality service possible.

CEO Andrew Sando said the agreement with Adventist HealthCare showed how all sides of Australia's private system could 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.

"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."

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