Private in-patients win under NSW Health authorisation

The NSW Department of Health will charge no more than the relevant Medicare benefit for pathology services to private in-patients in New South Wales public hospitals under an Australian Competition and Consumer Commission authorisation* issued today.

"NSW Health required private in-patients** in NSW public hospitals to obtain pathology services from NSW Health pathologists", ACCC Chairman, Professor Allan Fels, said today. "No private in-patient should now be out of pocket as a result of the policy.

"The ACCC received conflicting views on whether NSW Health's policy improves or reduces the quality of service provided by its pathology laboratories. Ultimately, the ACCC concluded from the evidence before it was that service quality is largely unaffected.

"The ACCC has required NSW Health to allow doctors to seek second opinions from private pathology laboratories where this is in the best interests of the patients", Professor Fels said.

The ACCC recognised that the policy generates small cost savings by having one pathology provider for private in-patients in its hospitals.

The authorisation only extends to NSW Health's pathology policy, not to any arrangements relating to other medical specialities. The final decision will be available soon on the ACCC's website

Background

*The Trade Practices Act 1974 prohibits certain forms of anti-competitive agreements including agreements between competitors which limit their ability to deal with who they choose or on the terms they choose (including price). Authorisation provides immunity from court action under the Act arising from certain anti-competitive agreements. Authorisation can only be granted where the ACCC is satisfied that the public benefit arising from the conduct outweighs any competitive detriment.

** These are private patients who are admitted to a hospital.