But details over what will and will not be covered under a new three-year arrangement were left blank, potentially opening the door to larger out-of-pocket expenses for Medibank customers in the Riverina.

Leading Wagga doctors cautiously welcomed the announcement with one caveat: “the devil is in the detail”.

It has stoked fears health insurers have gained ground in what doctors say is a push towards an “Americanisation” of Australia’s health system.

Just one day earlier, Wagga Medical Branch Council chairman Dr Peter Ruchin told the Advertiser the dispute was only the “thin edge of the wedge”.

“We always worry when they don’t tell us the full story about how the negotiations end,” he said.

“Hopefully the resolution will deter any other health insurers from making any sort of similar moves, but I think it’s still very much watch this space.

“This may not be the final time insurers try to pressure smaller hospitals – or even larger ones.”

At the centre of the skirmish was Medibank’s list of “preventable” medical complications. It was the health insurer’s “bargaining chip” to achieving increased safety standards in hospitals, but doctors said it paved the way to bigger profits for Medibank, leaving patients “high and dry”.

Wagga cardiologist Dr Gerard Carroll called on the government to ensure flexibility in Australia’s health system was maintained for years to come.

“They have a stake in this, too,” he said.

“Insurance companies are insurers, they are not the gatekeepers of quality care.

“Public and private hospitals have enormous onus on them to provide quality care.”

A joint Calvary-Medibank statement said a “renewed partnership” put both parties in a strong position to tackle future challenges. 

Welcoming the resolution, health minister Sussan Ley said the government would fast-track a new national list of high-risk complications to improve patient welfare.