Medibank zero out-of-pocket joint surgery partnership
Nexus Hospitals’ partnership with Medibank Private featured in the Australian Financial Review today, with Medibank CEO Craig Drummond highlighting our zero out of pocket joint replacement surgery model as a way of delivering high value healthcare whilst maximising the value of private healthcare expenditure. More information on our zero out of pocket model is available here.
The article reads:
The healthcare programs have been rolled out Australia-wide to offer rehabilitation and chemotherapy at home, which has become a critical battleground for health insurers as they grapple with the ageing population. The industry estimates almost 120,000 hip, knee and shoulder replacements were performed last year and the estimated cost is $2.5 billion a year.
The rate of joint replacements has been increasing by as much as 150 per cent since 2003, and the Australian Institute of Health and Welfare predicts rates will continue to climb, as the cost blow-outs revealed on Wednesday force insurers to seek premium increases in excess of general inflation.
“Rehab [for hip or knee replacements] done at home for the right customers under proper clinical counsel, we are providing that service at around $2800 per person,” says Drummond.
“In the hospital that costs around $10,000 for the same customer. That’s a small example of the way we are starting to influence the way healthcare is delivered.”
‘Not rocket science’
Drummond insists that patients are more satisfied too – the net promoter score for Medibank’s programs is consistently over 50 (anything above 0 is considered good while more than 50 is considered excellent). He also highlights Medibank’s recent partnership with Nexus Hospitals for short-stay or even same-day hip and knee replacements.
Drummond says that by avoiding the significant hospital accommodation charge, the company is also able to pay the doctors and carers more. “There are a number of patients in this country with joint replacements who should not be spending the time they are in overnight hospitals,” he says.
