AMA Raises Concerns About Risks of Vertical Integration in Private Healthcare
28 May 2026
Speaking at the Australian Private Hospital Association annual conference in Adelaide, Federal AMA President Dr Danielle McMullen discussed the “hidden costs of vertical integration” in the health sector.
Vertical integration refers to situations where for-profit companies own or control multiple parts of the healthcare system, including hospitals, clinics and related services.
Dr McMullen said there is a potential conflict of interest when corporate entities manage or influence healthcare services in order to reduce costs and increase profits.
She said there is evidence suggesting this model can impact patient choice, care quality and safety when financial goals influence clinical decisions.
The AMA stated it does not support US-style managed care models, arguing they have led to poorer health outcomes in other systems compared to Australia.
Australia’s healthcare system was described as performing strongly by international standards, particularly in terms of safety and quality of care.
The AMA emphasised that clinical decisions should remain between patients and their healthcare providers, without influence from insurers, governments or corporate owners with financial interests in care delivery.
AMA Raises Concerns About Risks of Vertical Integration in Private Healthcare
Source: Federal AMA / Australian Private Hospitals Association Conference
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