Medibank and private hospital provider Calvary have failed to reach agreement during mediation.
Both parties met on Thursday regarding contract negotiations, with Calvary National CEO Mark Doran saying it still wants to reach a mutually satisfactory outcome.
"In the event that a satisfactory outcome cannot be reached, Calvary will communicate clearly with stakeholders as to the next steps, most particularly with doctors and patients," he said in a statement.
But Medibank said it was deeply disappointed that Calvary was unwilling to share the load of keeping healthcare affordable, with their contract to expire at the end of the month.
"When the contract expires, Medibank and ahm members will still be able to be treated at Calvary hospitals but Calvary will be able to charge members additional out of pocket costs if it wishes," it said in a statement.
If if it does, members should contact the insurer, it said.
Medibank and ahm members who are pre-booked for treatment before August 31, or are already undergoing treatment for pregnancy or chronic conditions prior, will have the benefit time extended.
The extension time is nine months for pregnancy care, six months for chronic conditions and two months for other pre-booked procedures.
It also has in place arrangements to cover any out of pocket hospital costs that members may be charged for admissions up to October 31, which will be further explained in a letter or email.
"We have not made this decision lightly," Dr Andrew Wilson from Medibank said.
"Medibank has paid above market rates to Calvary for a number of years, and unfortunately this situation cannot continue," he added.
The insurer said it hopes Calvary eventually changes its position and decides to partner it.
Share
