The ACCC has released a draft determination proposing to grant re- authorisation to the AMA NSW for itself and participating Visiting Medical Officers (VMOs) to collectively negotiate with Private Hospital Operators regarding the terms and conditions (including remuneration) for VMOs engaged to provide medical services to public patients in the New South Wales (NSW) private hospital system as part of the response to the COVID-19 pandemic.
The private Hospital Operators are Ramsay Health Care Australia Pty Limited, Healthscope Operations Pty Limited, Healthe Care Australia Pty Limited, Adventist Healthcare Limited, St Vincent’s Health Australia Limited and other private hospitals and day surgeries licensed in NSW. The AMA NSW must notify the ACCC of the identity of any additional private hospitals or healthcare providers with which it intends to collectively negotiate.
The AMA NSW is seeking to replicate the arrangements that are currently in place under the existing authorisation AA1000511, which the ACCC granted on 26 August 2020. The existing authorisation is due to expire on 30 September 2021. As such, the AMA NSW has requested urgent interim authorisation to enable itself and VMOs to continue to engage in the conduct under the existing authorisation while the ACCC is considering the substantive application for re-authorisation.
The ACCC considers that the conduct is likely to result in public benefits by reducing transaction costs, reducing information asymmetries, and facilitating other contracting efficiencies. It may also support the continuation of training for junior doctors.
The ACCC considers that the conduct is likely to result in limited public detriment. There will be transparency around the conduct as a result of the reporting conditions that the ACCC proposes to continue. The existing authorisation imposes reporting conditions requiring the AMA NSW to notify the ACCC of new private hospitals and healthcare providers before it commences collective negotiations and to provide regular updates to the ACCC.
The ACCC is proposing to grant re-authorisation for a further 12 months.
The ACCC has also granted urgent interim authorisation to enable AMA NSW to continue to engage in the conduct authorised by the ACCC on 26 August 2020.
Further information about the ACCC’s interim authorisation and draft determination is available on the ACCC public register at: Australian Medical Association (NSW)