Bupa and Ramsay have announced they have reached an in-principle agreement on the key terms of a new three-year Hospital Purchaser Provider Agreement.
The announcement follows several months of disagreement between the two companies that ultimately saw the termination of a contract that risked higher out-of-pocket costs for patients.
The companies said they expect that the key terms of the formal agreement will be finalised in the next two weeks with a new HPPA to be confirmed prior to the current transitional arrangements ending on 1 October 2022.
"This will ensure Bupa customers will continue to have a no additional out-of-pocket expenses experience when they attend a Ramsay hospital," said the private health insurer in a statement.
"The companies said the Agreement finds a balance between the challenges faced by hospital operators in the current environment, whilst also recognising the cost of living and affordability challenges for health insurance customers.
"Moving forward, both companies have committed to working collaboratively in service of their joint customers and patients."