nib signs multi-year agreement with Healthe Care

nib Group (ASX: NHF) has signed a multi-year contract with Healthe Care. The contract covers Healthe Care’s 17 hospitals, located in capital cities and major regional centres across New South Wales, Victoria and Tasmania.  

The contract negotiations were finalised by nib’s hospital contracting business, Honeysuckle Health, and the agreement is in effect. It includes measures both parties believe reflect a strong partnership model that allows for price re-baselining, consumer inflation and healthcare price rises. The model also allows both parties to focus on initiatives that improve patient experience and the value delivered by nib and Healthe Care’s teams. 

We know our customers value access to quality care, ongoing certainty about where and when that care is provided, and receiving the best possible value for their money,” said nib Managing Director and Chief Executive Officer, Ed Close.

“We sign long-term hospital contracts because they ensure agreed pricing. That means that there are no additional out-of-pocket costs for customers undergoing treatment at those hospitals.” Health funds paid $12.3 billion¹ to private hospitals in the 12 months to March 2025, an increase of 7.7%. 

Healthe Care Chief Executive Officer, Matt Hanrahan, said: “Ongoing, fair contracts help us manage our capital and costs, and plan sustainably for the services we provide. nib has been forthcoming in supporting us to close the current gaps between price and costs. This allows us to explore innovative ways we can deliver care to health fund customers and focus on delivering excellent patient care. It’s a good example of health funds and hospitals working together.”  

The contract between nib and Healthe Care includes provision for the joint development of healthcare programs. “We are working on ways that allow us to fund programs that we currently can’t fund,” Mr Close said. “This may include psychiatry delivered in the community, as a way of building support networks around customers once they are discharged from hospital.”  

The partnership initiatives build on the exceptional care already provided by Healthe Care. “Ultimately, the focus of these programs is to ensure nib customers get access to a range of personalised care programs when they come to any of Healthe Care’s facilities,” Mr Hanrahan said. 

Background 

• nib has almost 2 million health fund customers across Australia and New Zealand. It has a strong track record of working with healthcare providers to deliver value and access for customers. 

• Healthe Care employs more than 4,800 staff with over 3,600 accredited doctors.