More than 800,000 people in Sydney and Melbourne insured by 31 private health insurance funds (list at bottom) are in danger of losing access to 11 private hospitals operated by one of Australia’s largest hospital groups, Macquarie Health Corporation amid a dispute with the Australian Health Service Alliance (AHSA).
AHSA are refusing to fund Macquarie’s hospitals at the same level as other private hospitals. As a result Macquarie Health has been forced to provide AHSA’s member funds with a notice of termination of its Business Partnership Agreement, which will take effect on March 17, 2026.
AHSA has refused to engage or respond to Macquarie on the matter, stonewalling any resolution. Macquarie has contacted the Commonwealth Ombudsman to help resolve the dispute.
Over the last year Macquarie hospitals have provided care for 11,026 AHSA patients and over 27,315 bed days – among the largest of any hospital groups in Australia. Yet AHSA will not adequately compensate Macquarie going forward.
Only immediate action by AHSA to help resolve matters will avoid major patient cost rises.
Macquarie Hospital Group CE David Wenkart said “Sadly, unless AHSA returns to the table, our contracts with AHSA will terminate next month and we will be left with no alternative but to charge AHSA fund members an out of pocket charge to access Macquarie hospitals. Macquarie has private health insurance contracts with all other major health funds. “AHSA’s belligerence will result in its members being disadvantaged as compared with members of other health funds.”
The dispute concerns Equal Pay for Equal Service and fair indexation. “AHSA repeatedly refused to fairly compensate Macquarie’s full network of facilities and to recognise the substantial cost and inflationary increases facing Macquarie hospitals. AHSA’s position places unreasonable pressure on Macquarie and its customers at a time when private hospitals are under substantial strain”, he added.
Mr Wenkart concluded “Macquarie still hopes to reach agreement with AHSA prior to the contract termination date.”
Issued By: Tim Allerton – City PR 0412 715 707.
AHSA Member Funds
View PDF – Press Release_Macquarie Health_Feb 2026
About Macquarie Health Corporation Macquarie Health Corporation is one of Australia’s leading boutique private hospital groups, operating 12 facilities across New South Wales and Victoria. Specialised in rehabilitation, surgery, and mental health, Macquarie Health is committed to a “patient-first” model characterised by high staffing ratios and state-of-the-art technology.
Affected Facilities:
- The Sydney Private Hospital
- Manly Waters Private Hospital
- Minchinbury Community Hospital
- Delmar Private Hospital
- Longueville Private Hospital
- President Private Hospital
- Eastern Suburbs Private Hospital
- Holroyd Private Hospital
- Melbourne Eastern Private Hospital
- Essendon Private Clinic
- Malvern Private Hospital