Hospital operator tips reversal over health insurance
Ramsay Health Care chief executive Chris Rex, whose company runs 66 hospitals and day surgeries in Australia, has railed against changes to the health insurance rebate since they came into effect last year.
He said he would be "surprised" if a reversal didn't happen, despite the Opposition refusing to commit to a strict time frame.
"The transformation in terms of the number of Australians who could afford health insurance - and who were removed from using the public system - was a major policy initiative of the previous Coalition government," Mr Rex said.
"I would be surprised if they didn't make sure it continued to operate successfully."
Mr Rex was speaking after his company reported a $138.4 million first-half profit, up 10.1 per cent from the corresponding period last year.
The company's founder and chairman, Paul Ramsay, was the biggest political donor last financial year, donating $505,000 to the Liberal Party through Paul Ramsay Holdings and $100,000 through Ramsay Health Care.
The government's new means testing removes the private health insurance rebate from some high-income earners, and pushes more money towards the public healthcare system.
"If the Coalition is in power and health insurance membership has been ... adversely affected, then I think the Coalition would do whatever was needed to restore the balance," Mr Rex said.
The hospital operator upgraded its full-year profit growth forecast to 13-15 per cent, up from 10-12 per cent.
Mr Rex said the company was aiming to expand into new markets.
"We're not confining our business to markets where we already have hospitals," he said.
"We are looking at other geographies as well."
The health group, which also operates in Britain, France and Indonesia, posted an interim dividend of 29¢ fully franked, up 13.7 per cent from the corresponding period.
Frequently Asked Questions about this Article…
Ramsay Health Care reported a first‑half profit of $138.4 million, an increase of 10.1% compared with the same period last year.
Yes. The hospital operator upgraded its full‑year profit growth forecast to 13–15%, up from its prior guidance of 10–12%.
Ramsay Health Care declared an interim dividend of 29 cents per share, fully franked, which is up 13.7% from the corresponding period.
The government's means testing removes the private health insurance rebate from some high‑income earners and reallocates more funding to the public healthcare system, which can reduce the affordability or attractiveness of private cover for those affected.
Ramsay Health Care CEO Chris Rex said he would be 'surprised' if a Coalition government did not roll back the means‑testing, noting that the previous Coalition policy had expanded the number of Australians able to afford private health insurance and shifted people out of the public system.
According to the company's CEO, if a reversal restored incentives for private health insurance membership, it could help maintain or boost demand for private hospital services; he also said the Coalition would act to 'restore the balance' if membership had been adversely affected.
Ramsay Health Care runs 66 hospitals and day surgeries in Australia and also operates in Britain, France and Indonesia. The company said it is aiming to expand into new markets and other geographies beyond its current footprint.
Yes. The company's founder and chairman, Paul Ramsay, was the biggest political donor in the last financial year, donating $505,000 to the Liberal Party through Paul Ramsay Holdings and $100,000 through Ramsay Health Care.
Call 1300 880 160
Start a chat
Schedule a call
