ACCC proposes to grant authorisation to GPs for fee-setting and hospital agreements
The Australian Competition and Consumer Commission has issued a draft determination proposing to authorise* certain general practitioners to agree on the fees they charge their patients and to collectively negotiate hospital agreements, ACCC Chairman, Mr Graeme Samuel, said today.
In 2002 the ACCC granted authorisation to the Royal Australian College of General Practitioners for GPs intra-practice price-setting arrangements. The authorisation concerns GPs in a single practice operating as a team.**
The RACGP is seeking to renew the authorisation and extend it to allow GPs in the relevant practices to collectively negotiate on the terms and conditions, including fees, of their service contracts with public hospitals as visiting medical officers.
The RACGP also applied for interim*** authorisation for the arrangements. In December 2006 the ACCC granted interim authorisation only to the intra-practice price-setting element of the application. The ACCC has revisited the request and has decided to grant interim authorisation to all the arrangements.
The ACCC is satisfied that the proposed arrangements are likely to result in a net benefit to the public. In particular, the proposed arrangements are consistent with a team approach to patient care and are likely to result in future efficiency gains in negotiations with hospitals.
The ACCC considers that any detriments from the arrangements are likely to be limited. In particular, patient fees remain constrained by competition between practices and GPs are free to bulk bill or offer discounts for their services on an individual basis.
The ACCC notes that public hospitals are not compelled to enter into collective bargaining arrangements with GPs and the bargaining groups are confined to single GP practices.
The ACCC's draft determination will be available from the ACCC website.
The ACCC is seeking submissions from interested parties in relation to its draft determination. Submissions can be made to: The General Manager, Adjudication Branch, Australian Competition and Consumer Commission, PO Box 1199, Dickson, ACT, 2602. Submissions can also be lodged by email to: adjudication@accc.gov.au.
*Authorisation provides immunity from court action for conduct that might otherwise raise concerns under the competition provisions of the Trade Practices Act 1974. Authorisation is granted where the ACCC is satisfied that the practice delivers a net public benefit. In considering a request for authorisation the ACCC conducts a comprehensive public consultation process.
**The arrangements apply to GPs operating in associateships or incorporated partnerships where the GPs are working as a team, sharing patient records, common facilities, a common trading name and common policies and procedures.
***Interim authorisation protects the arrangements for which authorisation is sought from legal action under the relevant provisions of the Act while the ACCC considers and evaluates the merits of the substantive application.
