ACCC grants authorisation to the Rural Doctors Association of Australia
The Australian Competition and Consumer Commission has issued a determination granting authorisation* to a collective bargaining arrangement put forward by the Rural Doctors Association of Australia.
The RDAA proposes to collectively negotiate with state/territory health departments the terms of contracts for GP visiting medical officers in rural areas, particularly with respect to payments for services provided to public patients and for on-call services. The RDAA does not propose to negotiate on behalf of other medical specialists or with individual hospitals.
In assessing this matter, the ACCC paid particular attention to whether the proposed collective bargaining arrangement is genuinely voluntary for state/territory health departments.
The ACCC received submissions from some interested parties expressing concern that GP VMOs can exert pressure on state health departments to negotiate with the RDAA by withdrawing, or threatening to withdraw, their VMO services and focusing on their private practice work.
The legal protection afforded the authorisation does not extend to any collective decision by RDAA member to engage in boycott activities. If such conduct did occur, the ACCC would investigate.
The ACCC is satisfied that the proposed collective bargaining arrangement will only lead to an agreement it if is mutually beneficial to both parties.
The ACCC considers that the proposed collective bargaining arrangement may generate some public benefits in the form of small transaction cost savings and enhanced representation of rural doctors in dealings with state and territory health departments.
Importantly, while authorisation removes the legal risk associated with the RDAA negotiating with state/territory health departments on behalf of its members, it does not compel the state/territory health departments to negotiate with the RDAA. The state/territory health departments remain free to continue with their existing arrangements for GP visiting medical officer contracts.
The ACCC's determination will be available from the ACCC website.
*Authorisation provides protection from court action for conduct or arrangements 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 benefit to the public from the conduct outweighs any public detriment. A party to whom authorisation had been granted may also apply to the ACCC for a minor variation of that authorisation.
