Private hospital firm says some don’t ‘pay fair share’
Australia’s largest private hospital operator has singled out some customers for not paying their “fair share” for healthcare.
Ramsay Health Care, which operates a network of 48 hospitals across the country as well as in the UK and Europe, said the healthcare industry was facing a number of headwinds, including cost pressures.
“The operating environment remains challenging, with ongoing cost pressures and the reluctance of some payers to recognize and pay their share of these inflationary cost increases,” Chairman David Thodey told shareholders at the group’s annual meeting on Tuesday.
However, Ramsay, which reported a net profit of over $300 million in the 2024/25 financial year, is looking forward to even higher earnings in the new year.
CEO Natalie Davis told the meeting that the first quarter had been strong for the group, with revenue rising 6.5 per cent and underlying pre-tax earnings rising 5.8 per cent.
“Overall, we are on the right track and continue to make good progress,” he said.
Australians spent nearly $270 billion on healthcare products and services in 2023/24, the latest data available from the Australian Institute of Health and Welfare.
This corresponds to an average of $10,000 per person per year.
Health expenditures account for approximately 10 percent of the country’s gross domestic product, and this proportion is increasing.
In 2023/24, Australian governments funded $188.2 billion, or 69.6 per cent, of total health expenditure.
The remaining $82.3 billion, or 30.4 percent, was financed by nongovernmental sources, including private health insurers, individuals and other sources.
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