ACCC takes action against Berwick Springs G.P. for alleged attempt to induce boycott of bulk-billing
The Australian Competition and Consumer Commission has instituted proceedings in the Federal Court, Melbourne, against AK Freund Pty Ltd and Dr Abraham Freund, for allegedly attempting to make or induce an arrangement or understanding with a competitor to boycott bulk-billing* and boycott after-hours medical services.
AK Freund Pty Ltd is a lessee of the Berwick Springs Medical Centre. Dr Abraham Freund is a Director of AK Freund Pty Ltd and a practising general practitioner providing medical services from the centre. The Berwick Springs Medical Centre is located within the City of Casey, Victoria.
The ACCC alleges that AK Freund Pty Ltd and Dr Abraham Freund, insisted upon the incorporation of 'Rules' in any leases of the Medical Centre suites. The Rules amongst others things, imposed obligations on general practitioners operating separate businesses in competition with AK Freund Pty Ltd and Dr Abraham Freund:
not to provide bulk billing services to patients, other than to pensioners, Health Card holders or the GP's immediate family members and
not to provide medical services to patients after 8 p.m. Monday to Saturday or after 1 p.m. on Sundays.
The ACCC alleges that it was AK Freund Pty Ltd and Dr Abraham Freund's intention that, by the incorporation of the Rules into leases for the Medical Centre suites, anyone who entered into a lease for a suite at the Medical Centre would be subject to the Rules.
The ACCC further alleges that it was AK Freund Pty Ltd and Dr Abraham Freund's primary concern that any general practitioners who might practice from the Medical Centre in competition with Dr Freund, be obliged not to bulk bill generally without the consent of AK Freund Pty Ltd and be restricted as to their hours of practice.
The ACCC is seeking court orders including:
declarations
injunctions
the implementation of a trade practices compliance program
findings of fact and
costs.
A directions hearing has been scheduled for 9.30 a.m. on 7 February in the Federal Court, Melbourne before Justice Sundberg.
Release # MR 304/02
Issued: 3rd December 2002
Background
*Bulk-billing: Bulk-billing refers to an arrangement under section 20A of the Health Insurance Act 1973 under which a person liable to pay for medical services assigns the benefit payable in respect of that service to the person's medical practitioner, and the medical practitioner accepts that assignment as full payment for the medical service.
