Southern Cross clears backlog but loses customers

3.00 pm

Southern Cross, the country's largest health insurer, says it has eliminated its huge backlog of claims, but admits the disruptions have cost it clients.

Southern Cross, which has about 810,000 members -- nearly one in five New Zealanders -- had been beset by disgruntled clients who had waited weeks, and sometimes months, for their claims to be settled.

Private hospital operators and medical specialists had also complained of being out of pocket.

The problems arose after Southern Cross' controversial purchase of its prime competitor, Aetna Health, last year, in part to obtain its multimillion-dollar computer system.

The company's claims director, Bryan Kensington, said today he believed the company was losing clients -- although concrete figures were not yet available.

"I suspect we probably are. The opposition say they are gaining clients from us but they're not very definitive about that.

"I wouldn't be surprised if we'd lost a few and if we have I'm very sorry about that because the fact we were unable to pay claims is an embarrassment to us and our members."

The company would probably initiate a campaign to woo back customers, he added.

In late January the company's chief executive Roger Bowie resigned, the troubled health insurer's board blaming his departure on differing views of the company's future.

Mr Bowie took responsibility for the delays and admitted the company had failed to hire and train enough staff to handle the switch to the new system.

Mr Kensington said the company was paying standard medical and surgical claims within nine days and would continue to ensure they were paid within 15 days.

The company received between 1200 and 4000 claims each day, he said.

- NZPA

nzherald.co.nz/southerncross