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AMA to Explore Bulk-Billing Legal Loophole

The Australian Medical Association will explore a possible legal loophole that may allow general practice management companies to charge an administration fee to patients who are bulk-billed.

AMA Federal Vice President, Dr Sandra Hacker, said that the AMA would look carefully at legislation governing bulk-billing after the Health Insurance Commission conceded an administration fee being levied by Townsville practices 'could be legal'.

A $5 administration levy is reportedly being charged before patients see a doctor at two Townsville medical centres.

"These administration fees do not appear to be fees charged by doctors, nor do they appear to relate to a professional service. The law as it stands says that when a patient is bulk-billed, the bulk-billed rebate constitutes full payment of the fee," Dr Hacker said.

"The AMA will make its own assessment of the legal issues involved.

"There are several important issues at stake. Firstly, Federal Government rebates for GP services are miserably low and have not kept pace with the increasing costs of running a medical practice. There is increasing pressure on medical practices to abandon bulk-billing.

"If the rebate remains low when compared to practice costs, bulk-billing simply will be unsustainable for many practices. Around 80% of GP services are bulk-billed. Bulk-billing should be reserved for those in genuine need.

"Secondly, there is an increasing move to corporatisation in general practice. Unlike pharmacies, anyone can own a general practice. The trend towards corporatisation and ownership of general practices by non-GPs will be a major issue to be discussed at the AMA's National Conference in Canberra at the end of May.

"There are serious implications for the medical profession and the public in relation to corporatised general practice. The AMA will develop its policy on this issue over the next few months.

"The Townsville case may be a watershed for general practice. We will be looking at the legal and political issues involved very carefully," Dr Hacker said.

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