Keep Out Of Private Health Care, Symbion Tells Minister

The Age

Friday January 13, 2006

MICHAEL EVANS, SYDNEY

MANAGING director of health-care company Symbion Health Rob Cooke has dismissed comments from Health Minister Tony Abbott that the Federal Government needed to regulate health-care businesses.

Mr Abbott was reported yesterday to be wary of further corporatisation of medical services.

His comment was in response to evidence that a GP who worked in a corporate medical centre generated $830,000 in income from Medicare in a year, about three times the average.

Doctors can be penalised for ripping off Medicare for overservicing but not the companies that profit from the proceeds.

Mr Cooke said he was not aware of any Symbion employees being investigated. The managing director of Primary Health Care, Edmund Bateman, and his counterpart at Sonic Healthcare, Colin Goldschmidt, were unavailable for comment.

"We promote the independence of our doctors to choose the best clinical practice that they can, so they determine who gets X-rays, who gets pathology and who gets pharmacy," Mr Cooke said.

"The idea I'm going to risk a $2 billion business to lean on a couple of doctors is just stupid. I'm not aware of any of our staff or businesses being under any investigation for overservicing.

"I don't believe any extra demand has been caused from overservicing. On the contrary, I think it reflects some pent-up underservicing.

"People who were sick are now going to the doctors and getting referred for appropriate diagnostic testing."

While Mr Abbott's comments came in response to fraud allegations, industry sources note they come as Health Insurance Commission data reveals an increase in GP visits and pathology and radiology services.

Industry sources note that Government increases to bulk-billing in the lead-up to the last federal election promoted more GP visits, with a subsequent flow-on in referrals for more radiology and pharmacy services pushing up the cost of running Medicare.

Despite Mr Abbott's threat of increased regulation, Mr Cooke said there were "already checks and processes in place if a doctor refers more than his colleagues".

He questioned how increased regulation would work.

"At the end of the day, you'd have to get a government agency to engage with each doctor about their clinical practices versus a benchmark."

Citigroup analyst Andrew Goodsall said overspending appeared to be the root concern on pathology and diagnostic imaging.

"After the MedicarePlus saga of last year, it is likely that the Federal Health Minister will want to head off another health-care spending blow-out," Mr Goodsall said.

Symbion shares rose 5 ? to $1.39, Primary fell 30 ? to $11.20 and Sonic rose 5 ? to $15.15.

© 2006 The Age

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