Govt welcomes Medibank Calvary truce

Health Minister Sussan Ley is hopeful of business as usual now Medibank and Calvary Health Care have ended their ongoing row and signed a new deal.

A Medibank Private branch is seen in Sydney

Calvary Health Care and Medibank have signed a new 3 year contract, ending months of negotiations. (AAP)

The federal Health minister has welcomed the end of a dispute between Australia's largest private health insurer Medibank and Calvary Health Care.

After months of negotiations the pair has declared a truce, announcing on Sunday they've signed a new three year agreement.

It comes a day before the previous contract was due to expire.

Hopefully the agreement means "business as usual" on Monday, Sussan Ley wrote in a statement to AAP.

"Patients should always be the number one focus in negotiations between private hospitals and health insurers," Ms Ley said.

Both Medibank and Calvary believe the new contract will deliver enhanced clinical safety, quality care and affordability for members and patients.

"We recognise that this was a robust and challenging negotiation," Medibank's Dr Andrew Wilson and Calvary CEO Mark Doran said in a joint-release.

"We are pleased to have achieved certainty about ongoing care for Medibank's members who require care in Calvary hospitals".

The terms of the agreement are confidential.

Ms Ley says the federal government will still be fast-tracking a list of high-risk complications, being developed by the national hospital safety regulator.

The insurer recently released its own 'adverse events' list, the cost of which it wanted hospitals to cover.

That was criticised by the Australian Commission on Safety and Quality in Health Care.


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Source: AAP


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