A recent TV program pinpoints the issue of alarming out-of-pocket payments. Some people tend to think that petty out-of-pocket payments are no problem at all once they have purchased private health insurance. However, the problem in Australia is that there is no standardised fee schedule for private surgeons because of law and regulations. So some audacious surgeons can charge exorbitant fees, as long as they and patients can agree with each other. Some surgeons even charge exorbitant fees to imply that they are superior in clinical skills. As for patients who are usually incapable of seeking second opinion, or who are submissive out of courtesy, they tend to make disadvantageous decisions under information asymmetry. Due to the lack of price transparency in medical market, many accessory fees (eg. blood biochemical tests, anesthesia fee, follow-up rehabilitation fee) usually become financial burden to individuals and families. Even worse, some surgeons charge illegal exorbitant booking fee or administration fee. Once the outcome of the operation is unfavourable, another round of medical disputes appears. The doctor-patient relationship then turns tense, and the condition of practice in medical profession worsens, making doctors and patients losers.
Then, how shall one solve the problem? The government has already subsidised certain medical practice, and therefore it can in turn use the purchasing power to control the maximum limit on fees of medical services. For the medical profession, it can curb exorbitant fees through self-regulation and discipline through medical associations. For the consumers, they should seek second opinions at proper times and ask for price transparency before any operation, in order to avoid heavy financial burden caused by wrong medical decisions. At the same time they should not be influenced by high surgery fees—high surgery fees not necessarily representing better quality of medical services. It’s better to look twice, hearing twice, and think twice before you need a surgery.
See the video here:
Mind the Gap - Four Corners - ABC
