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Code of Practice Does Not Stop Funds Restricting Patient Choice

The AMA's Federal President, Dr Kerryn Phelps, welcomed the announcement of a Code of Practice between the private health funds and private hospitals - but warned that private patients could still be restricted in their choice of hospital.

"The AMA is opposed to the health funds limiting patient choices," Dr Phelps said.

"Private patients need to realise that if the hospital, or doctor, to whom they are referred does not have a specific contract with their health fund, the rebate they receive from the health fund may be considerably reduced.

"If your health fund provides a reduced rebate for your choice of hospital or doctor - you can explore the option of switching funds," she said.

Dr Phelps said the Code of Conduct was welcome in so far as it would improve the negotiation process between the funds and private hospitals over funding and service provision.

"Under the code private health funds will no longer be able to change the benefits paid to private hospitals without 'reasonable' notice.

"And health insurers will also have to keep their members informed of any changes to their contracts with private hospitals or changes to benefit levels in a 'reasonably timely manner'.

"We would urge both the private hospitals and health funds to honour this code," she said.

Dr Phelps said the AMA would be releasing this week a checklist on private health funds to help patients make informed choices about their private cover.

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