The Australian Competition and Consumer Commission has issued a determination granting authorisation* to a collective bargaining arrangement put forward by the Australian Medical Association (NSW).
AMA NSW proposes to collectively negotiate with NSW Health and public health organisations, including area health services, the terms of contracts for visiting medical officers in the NSW public hospital system.
"The ACCC considers the proposed collective arrangement may result in public benefit in the form of enhanced representation of VMOs in dealings with NSW Health," ACCC Chairman, Mr Graeme Samuel, said.
"The ACCC considers that features of the NSW health system limit the potential detriment of the proposed arrangement."
Importantly, negotiations about rates of remuneration can only take place with NSW Health and state legislation significantly constrains the ability of public health organisations to negotiate contracts terms which are inconsistent with those centrally determined by NSW Health.
"While authorisation removes the legal risk associated with AMA NSW negotiating with NSW Health on behalf of VMOs, it does not compel NSW Health to negotiate with AMA NSW," Mr Samuel said.
"NSW Health remains free to continue to establish standard terms and conditions for VMO contracts with or without input from AMA NSW."
The ACCC’s final 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.
