McGrathNicol appointed administrators to Australian Healthcare and Hospitals Association

Barry Kogan and Shane O’Keeffe of McGrathNicol were appointed voluntary administrators of the Australian Healthcare and Hospitals Association Limited (AHHA) on 29 September 2025, following a board resolution under s436A of the Corporations Act. The appointment brings to an end the operations of the national peak body representing private and public healthcare providers after a prolonged period of financial stress and industry discord.

According to a circular to members, the administrators have commenced an orderly wind-down of operations, with plans to realise AHHA’s remaining assets, including its Canberra office property, while preparing for a first creditors’ meeting scheduled for 10 October 2025.

The association’s collapse follows a turbulent year for the private hospital sector, marked by intensifying disputes with major private health insurers over contracting and funding models. In mid-2025, the AHHA had accused insurers of “unfair and unconscionable conduct” and misuse of market power, claiming that “take-it-or-leave-it” contracts and delayed negotiations were forcing hospitals to operate on outdated pricing and undermining patient care. The insurers rejected the allegations, arguing that commercial friction was necessary to contain premium costs.

The broader sector has faced mounting financial pressure since the pandemic, with more than 70 private hospitals closing since 2020 and the government urging stakeholders to find “workable solutions” to what officials described as a “toxic” relationship between hospitals and insurers. AHHA’s financial position reportedly deteriorated as membership revenues declined and policy advocacy efforts intensified against this backdrop.