Government Must Find $1.5b for Major Overhaul of Medical Fees
Australian Medical Association Federal President, Dr Kerryn Phelps, today called for the Federal Government's full commitment to a national overhaul of medical fees which would preserve universal access to Medicare.
Dr Phelps said a five-year study by the Federal Government and the AMA into Medicare Benefits Schedule fees - the Relative Value Study (RVS) - was now in its final phase and had been submitted to the Federal Health Minister.
"This is the first total overhaul of medical fees in 30 years - with the key objective of setting fair and reasonable MBS rebates for patients," Dr Phelps said.
"The RVS shows that Medicare funding needs to increase by up to $1.5 billion annually - a 33% increase in current funding.
"The Minister cannot keep ducking this critical issue when there's clear evidence that the government's fees schedule is way out of whack with the real costs of running a medical practice," she said.
Dr Phelps said the RVS comprised three separate studies - a comparison of GPs' incomes to other professions, a study of the average costs of running a medical practice, and a ranking of all medical consultations and procedures on a comparative scale.
"An important finding of the study was that an average GP - completing 40 hours of face-to-face consultations every week - faces costs of around $120,000 a year just to run a medical practice and provide quality patient care," she said.
Dr Phelps said the aim of the final phase of the RVS was to set a new schedule of MBS fees.
"According to the AMA's analysis of the RVS, a standard 15-minute GP consultation would increase from $27.00 to $44.00 and a standard 30-minute consultation between a specialist and a new patient would increase from $66.00 to $116.00.
"Clearly patient rebates would need to increase by similar amounts to minimise out of pocket expenses for patients," Dr Phelps said.
"If Australians are to continue to receive the benefits of universal Medicare, covering the bulk of their medical costs, the RVS must be implemented.
"Dr Wooldridge must keep his commitment that 'the Government continues to fully subscribe to the objectives of the study…I continue to support the Relative Value Study' (Letter to AMA in 1997).
"The Minister cannot continue to claim to support Medicare if he is not prepared to fund the RVS," Dr Phelps said.