The Australian Competition and Consumer Commission has welcomed the affirmation by an independent review committee that the Trade Practices Act 1974 does not fetter doctors in rural practice, ACCC Chairman, Professor Allan Fels, said today.
"Despite continuing Australian Medical Association claims to the contrary, the Wilkinson Committee* which reviewed the impact of the Act on the recruitment and retention of doctors in rural and regional Australia, has backed the ACCC view that:
- medical rosters do not breach the Act
- doctors do not need legislative exemption from the Act**, which applies to all businesses to protect consumers and other businesses
- the application of the Act is not impacting on the recruitment and retention of rural doctors
"The AMA and Rural Doctors Association of Australia called for this review. They should now accept the umpires' considered decision, which was reached after extensive consultation with the medical profession and others all around Australia.
"The review has recognised that the Act's object is to enhance the welfare of all Australians by promoting competition, fair trading and consumer protection and that doctors should not be above the law. The medical profession should comply with these public interest requirements, as every other sector of the economy must.
"I acknowledge the Prime Minister's comments in issuing the report which support 'further action by the ACCC to ensure that it is widely understood that genuine rosters which aim to ensure the availability of services do not (and have never been found to) breach the [Trade Practices] Act,' and that 'better understanding of and compliance with the Trade Practices Act result from the Wilkinson Report' ".
"It is therefore time for the AMA and RDAA to abandon their alarmist and misleading campaign against the Trade Practices Act, including false claims that rosters are illegal. The ACCC, and now the review committee, have clearly stated genuine rosters to ensure the supply of medical services after hours and on weekends are not contrary to the competition laws.
"Contrary to the AMA's assertions, the ACCC's case against three obstetricians in Rockhampton was about a collective boycott of no-gap billing arrangements with health insurance funds. The Federal Court of Australia has found, based on the agreed facts put before the Court, that this collective arrangement not to engage in no-gap billing offered by health funds, was a contravention of the TPA and/or the Competition Code of Queensland. While the ACCC understands the obstetricians had an after hours on-call roster arrangement, the ACCC took no objection to this arrangement, and sought no remedy from the Court in respect of that arrangement.
"Rather than any blanket legislative exemption as sought by the AMA the current law, through the authorisation process, provides a sensible method of dealing with any collective arrangements that may be at risk under the law. The ACCC recognises that there are genuine public benefits in ensuring rural and regional areas receive medical services. Already, the ACCC has granted interim authorisation and issued a draft determination after a Royal Australian College of General Practitioners fee proposal for general practitioners working in specified business arrangements. Those specified business arrangements have been given legal immunity whilst the ACCC finalises its determination.
"The ACCC will now move to implement the government’s response to the report. In particular, the ACCC will finalise its guide to the Act written specifically for general practitioners, taking into account comments made by the review.
"The revised draft guide was developed after discussions with representatives of the Federal Department of Health and Aged Care, the Australian Division of General Practitioners; the Royal Australian College of General Practitioners; the Rural Doctors Association of Australia; the AMA (Federal branch) and some individual rural general practitioners.
"The ACCC has consulted widely on this draft, including participation in workshops in rural and metropolitan areas. The final guide will ensure general practitioners are correctly informed about the application of competition law to their practices and of the ACCC's priorities in this area".
It also looks forward to consulting with the proposed Health Services Advisory Panel in developing enhanced communication strategies to address the perceptions issues identified by the review and the government.
*The Wilkinson Committee comprised Mr Warwick Wilkinson AM, chair, Dr John Alozois and Ms Diana Gibbs. It was established in August 2001 at the request of the Australian Medical Association and Rural Doctors Association of Australia by the Prime Minister, Mr John Howard. The independent Committee was asked to review the impact of Part IV of the Trade Practices Act 1974 on the recruitment and retention of medical practitioners in rural and regional Australia.
**The AMA's submission to the review included submissions that:
- "The TPA should be amended to provide an express exemption for rural and regional doctors".
- "The TPA should be amended to provide that associate practices (which are in effect operating as joint ventures) be exempted from the Act, Australia-wide".
Links
- AMA 'wrong' on genuine rosters: GPs misled on breach of the law
- Medical rosters do not breach Act: ACCC
- ACCC to assist review of the impact of Trade Practices Act on rural doctors
- Rural Doctors Association of Queensland unfortunately joins AMA in misleading medical practitioners
- No evidence that Trade Practices Act hinders rural doctors: ACCC
- Federal Court finds Rockhampton obstetricians' boycott of 'no-gap' billing breached competition laws