The Australian Competition and Consumer Commission has issued a draft decision proposing to allow the Rural Doctors Association of Australia (RDAA) and its state associations to continue to collectively negotiate with state and territory health departments, on behalf of rural doctors.
The negotiations relate to the terms and conditions under which rural doctors, including GPs and locums, provide services in public hospitals and health facilities as Visiting Medical Officers and provide after-hours services.
“Collective negotiation can deliver cost savings and provide more effective input into contracts. This may lead to greater attraction and retention of doctors in rural areas, where access to sufficient medical services could otherwise be limited,” ACCC Acting Chair Dr Michael Schaper said.
The RDAA is also seeking authorisation to collectively negotiate with newly established Medicare Locals and Local Hospital Networks, which have been established to provide tailored healthcare solutions in geographically defined areas.
However, the ACCC is not proposing to extend authorisation to negotiations with these parties because it is concerned that the benefits are likely to be more limited and collective negotiations may reduce price competition and the scope to negotiate specifically tailored solutions for each region. The ACCC would welcome further information about the potential benefits and detriments from collective bargaining with Medicare Locals and Local Hospital Networks before making its final decision.
Authorisation provides statutory protection 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.