The Australian Competition and Consumer Commission has granted interim authorisation to the Canberra After-hours Locum Medical Service (CALMS) to continue to apply a ‘not to exceed’ fee schedule (capped fee arrangement).
CALMS is a not for profit company comprising general practitioners that provide after hours primary medical care locum services in the ACT.
Under the arrangement,19 July 2011 to 18 October 2011 CALMS doctors will not be able to charge fees above the cap for consultations but will be able to charge fees lower than the fee schedule or bulk bill where appropriate.
The ACCC previously authorised the arrangement in 2008 when it was found that the public benefits would outweigh the detriment. The existing arrangement will expire on 31 October 2011.
Interim authorisation will provide medical practitioners and patients with certainty about fees for after-hours services while the ACCC considers a new fee schedule proposed by CALMS for the period until 30 June 2013.
The granting of interim authorisation in no way binds the ACCC in its consideration of the substantive application for authorisation.
Authorisation provides immunity from court action for conduct that might otherwise raise concerns under the competition provisions of the Competition and Consumer Act 2010. Broadly, the ACCC may grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment.
The ACCC has sought submissions from interested parties on CALMS’ substantive application for authorisation. A draft decision on the substantive application will be issued in November/December.