Dr Allan Zimet, AMA Treasurer, with Malcolm T Elliot, Radio 2UE

On the line to help clarify this murky situation, and it is murky, is the Federal Treasurer of the Australian Medical Association, Dr Alan Zimet. Doctor, good morning.

ZIMET: Good morning.

ELLIOT: What exactly was Mayne Health asking for in regards to NIB?

ZIMET: Look, as I understand it, this is really just a commercial hype between NIB and Mayne. Mayne need to run their hospitals at some sort of profit because they're a full-profit organisation and NIB need to make sure that they have enough money to pay for their members' services.

ELLIOT: So where does the member get caught up in this? Surely if they go into the Mayne hospital like the Port Macquarie hospital or Baulkham Hills or other Mayne hospitals?

ZIMET: Well, Port Macquarie's a public hospital run by Mayne but that's a different situation, of course.

ELLIOT: OKay, well let's look at other Mayne hospitals, what happens to a NIB fund holder?

ZIMET: Let's just take it one step back, Malcolm. I think that what this is, is that NIB are just not willing to pay enough for their members' treatment. The problem is that costs in hospitals have risen dramatically because of staff shortages of nurses who we need to pay more. I'm not an apologist for Mayne, and certainly wouldn't want to be seen as one but certainly it's time the Government started looking at whether their $3 billion dollars subsidy to funds like NIB is getting good value. It's really NIB needs to pay more and pay properly.

ELLIOT: So you're saying, without putting words into your mouth, you're saying that NIB is the one that's out of step?

ZIMET: Well, I think NIB are out of step, absolutely. They need to look at what are realistic commercial charges for patients for proper treatment for patients. One of the problems that Mayne has been experiencing is what's called cherry picking, where Mayne and other private hospitals are looking to usually treat surgical patients because they get paid more money for them and this is not only, I think Mayne, but also the not for profit hospitals like big Catholic hospitals. They'll pick out the best patients where they can treat them quickly, get extra surgical fees for day procedures and will try and restrict the sort of elderly, sick patients who are complex where they will take more time, more effort and get less money, and that's why NIB and the other health funds need to start looking at the charges.

ELLIOT: And the NIB say they're a non-profit organisation, surely HCF and MBF are the same, are they not?

ZIMET: They are non-profit but they all have large surpluses at this point in time.

ELLIOT: Including NIB?

ZIMET: Well, as I understand it, yes.

ELLIOT: You see, I was with MBF for many, many years and I changed over to NIB at the start of this year. I lasted three months and I got out and begged with MBF to come back because I was very, very unhappy with the way the place was operated. I've told nobody that since then, until now, because I was disappointed with NIB and obviously in what you're telling me today, they've got a lot to do in their relationship as far as Mayne is concerned and the people who are paying fees to NIB.

ZIMET: I don't know NIB in particular, but I think that small healthfunds will need to start looking at their operations where their back offices are fairly expensive to run and I suspect a lot of them will have to combine to make things more efficient.

ELLIOT: So you don't believe, in your role as the Federal Treasurer of the AMA, that Mayne Health are doing anything untoward in this, in this case?

ZIMET: As I said, I believe it's commercial negotiations between NIB and Mayne and each side is applying commercial tactics to this.

ELLIOT: Alright, thanks for your time. Nice to talk to you, Alan. Dr Alan Zimet there, Federal Treasurer of the AMA.

Ends