ACCC authorises GPs to collectively set fees and negotiate with hospitals
The Australian Competition and Consumer Commission has issued a determination authorising* certain general practitioners to agree on the fees they charge their patients and to collectively negotiate with hospitals for the provision of Visiting Medical Officer services, 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 has sought renewal of the authorisation and its extension to allow GPs in particular practices to collectively negotiate with public hospitals regarding the terms and conditions, including price, of their VMO contracts.
The ACCC is satisfied that the arrangements are likely to result in a net benefit to the public. 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 the arrangements are likely to generate some public benefit by assisting the recruitment and retention of GPs in rural Australia; an important issue in light of current medical workforce shortages in rural Australia.
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 has authorised the arrangements for a period of four years. The ACCC's determination is available from the ACCC website, under Authorisations.
*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.
