ACCC grants authorisation to allow capped fees at ACT CALMS clinics
The Australian Competition and Consumer Commission has issued a determination granting authorisation* to enable CALMS Ltd to continue** to use a 'not to exceed' fee schedule (capped fee arrangement) for after hours primary medical care in the ACT.
Under the arrangement, CALMS doctors will not be able to charge fees above the cap for consultations but will be able to charge fees lower than the cap or bulk bill where appropriate.
"The ACCC considers that the capped fee structure promotes transparency and certainty regarding fees for patients seeking after hours primary medical care in the ACT," ACCC Chairman, Mr Graeme Samuel, said today. "The detriment from the arrangement is limited, particularly as it imposes a cap rather than a fee floor."
The ACCC notes that the level of the fee cap may need to change during the timeframe of the proposed authorisation. To provide some flexibility and to reduce the need for CALMS to seek reauthorisation if fees change, the authorisation will allow CALMS to make reasonable changes to the capped fee schedule on condition CALMS advise the ACCC of any changes and the reason behind the change.
The ACCC is able to review the authorisation if CALMS increases the fee schedule above a reasonable level.
The authorisation will remain in place until 31 October 2011
The ACCC’s determination will be available from the ACCC website, www.accc.gov.au.
*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 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.
** The ACCC first authorised CALMS to use a capped fee structure in 2005 and then again in 2007 for a revised fee structure to reflect changes and clarifications to the Medicare Benefits Schedule.
