Australia’s biggest private hospital operator has singled out some of its clients for not paying their “fair share” for health services.
Ramsay Health Care, which has a network of 48 hospitals across the nation as well as operations in the UK and Europe, said the health sector faces a number of headwinds including cost pressures.
“The operating environment remains challenging, with ongoing cost pressures and the reluctance of some payors to recognise and pay their fair 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 more than $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 the first quarter was a strong one for the group, with revenue up 6.5 per cent and underlying pre-tax earnings up 5.8 per cent.
“In summary, we are on track and continue to make good progress,” she said.
Australians spent about $270 billion in health goods and services in 2023/24, which is the latest data available from the Australian Institute of Health and Welfare.
That equates to an average of around $10,000 per person a year.
Health spending accounts for about 10 per cent of the nation’s gross domestic product and that percentage is on an upward trajectory.
In 2023/24, Australian governments funded $188.2 billion of the total health expenditure, or 69.6 per cent.
Non-government sources, which include private health insurers, individuals and other sources, funded the remaining $82.3 billion, or 30.4 per cent.
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