No support for Scotton 'managed competition' in health care proposals
AMA President, Dr Kerryn Phelps, said today that proposals for managed competition in health care put forward by health economist, Dr Richard Scotton, are tantamount to US-style 'managed care' and are not suitable for the Australian health care system.
Dr Scotton's proposals are contained in a Productivity Commission report released today.
Dr Phelps said the Scotton model should be rejected outright by the Government and the Opposition as they seek new policy to address the many challenges facing health care delivery in Australia.
"The Scotton model ignores the needs of doctors and patients. It gives decision-making power and resource allocation discretion to the budget holding body," Dr Phelps said.
"Budget holders would naturally act in their own best interests and if this meant denying certain services to patients, they would.
"There are not many parts of Australia with population densities sufficient to ensure that genuine competition could occur between budget holders.
"It is doubtful there would be any interest in being a budget holder in many parts of Australia, such as outer metropolitan and regional areas, which would add further to the health service disadvantage already being experienced in those areas.
"It is unlikely the Scotton model would deliver one more GP to an outer metropolitan or rural community. It would more likely have the opposite effect.
"And the amount of health budget money lost to another layer of bureaucracy and administration would be considerable.
"On page xvi of the Summary of the Productivity Commission report it is stated that:
- The model would "create tensions between the Commonwealth and State Governments..."
- "...doctors and other providers of health care services would be likely to resist changes..."
- "Consumers (patients) used to an open access regime for basic and hospital services would be likely to strongly resist the introduction of different payment regimes for different packages of these and other health services..."
- "Private insurers may resist the changes..."
"Without the support of the States, the doctors, the patients or the insurers, Dr Scotton does not have much of a cheer squad for his proposal," Dr Phelps said.
CONTACT: John Flannery (02) 6270 5477 / (0419) 494 761