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Divisions review forecasts fund holding - AMA

AMA Vice President, Dr Mukesh Haikerwal, said today that the recently released Report of the Review of Divisions of General Practice contains enough hints to suggest the Government has plans to use the Divisions as fund holders for health financing.

Dr Haikerwal said the AMA opposes fund holding because it allows the Government to escape responsibility for under-funding the health system and can lead to rationing of vital medical services.

"Fund holding works against good health outcomes in the community," Dr Haikerwal said.

"It impinges on a GP's clinical independence by introducing rationing or eligibility criteria for patient care.

"Because the budget bottom line is paramount with fund holding, patients lose out on the best possible care because economic pressure can mean shorter hospital stays, fewer specialty services or selective use of expensive technologies - all because of under-funding.

"Fund holding limits patient choice," Dr Haikerwal said.

Dr Haikerwal said the Report of the Review of Divisions of General Practice notes that there could be new roles for the Divisions such as regional fund holding. 

"There is little doubt that the Review provides the Government with the platform to introduce fund holding through the Divisions of General Practice.

"Fund holding programs involving millions of pounds failed miserably in the United Kingdom.  They did not deliver better health outcomes for patients.  All they did was demoralise and stifle the medical workforce.  We can't let the same happen here.

"The AMA will strongly oppose any move in this direction," Dr Haikerwal said.

Following a decision by the AMA Council of General Practice at the weekend, the AMA is writing to all Divisions outlining its case against the introduction of fund holding.

CONTACT:     John Flannery               (02) 6270 5477 / (0419) 494 761

                   Judith Tokley                (02) 6270 5471 / (0408) 824 306

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