Possible new health costs

Tony Ryall
Tony Ryall
The fate of the Otago and Southland district health boards' proposal to charge for laboratory tests ordered by private specialists is unclear, with the new Health Minister announcing a moratorium on the issue.

Minister Tony Ryall said this week he had advised the Ministry of Health of the moratorium, pending a review on the impact of the charges in Hutt Valley and Capital and Coast district health boards. (Those boards and Tairawhiti are the only ones who have introduced charges for the privately ordered tests so far.)

The review was being discussed with the ministry, Mr Ryall said, but his statement did not give any indication of the time it might take.

At the moment the boards bear the cost of privately ordered laboratory tests, but the Otago board has estimated it could save $1 million a year and Southland $300,000 if they stopped this practice. Those critical of the move have suggested gains will be lower.

In June, both the Otago and Southland boards decided against waiting for a national policy on the issue and began discussions with Southern Community Laboratories (SCL), which provides laboratory services, to work out an implementation plan.

The Otago board vote was split, with some members being concerned about how exceptions might be dealt with and how detrimental effects would be monitored.

Both boards specified they would have to be satisfied with the implementation plan before the proposal would proceed.

As yet, a way of billing for the tests in Otago and Southland has not been settled, although SCL chief executive officer Dr Peter Gootjes said this week progress was being made on outstanding issues.

The issue appears to have proved more complex than the board realised.

Initially, it appears to have been assumed that specialists would bill patients for tests, but it is understood specialists have not been keen on this idea so far.

At its last meeting for the year the board was told by regional planning and funding officer David Chrisp that SCL perceived risks to its business including the possibility of having to collect bad debts.

It is understood in some instances the amount of money sought could be as low as about $10, although a blood test involving several checks could be in the order of about $40 and tests involving histology are likely to be more than $100 each.

Pricing has not yet been set.

CSL was also concerned at the risk to it because a portion of its business under the existing contract could be opened up to competition as a result of the changes.

Mr Chrisp said one of the options could be leaving the contract as it was and the boards collecting the money, although that was not ideal from the boards' point of view.

CSL was still keen to come to an accommodation about how its risks might be managed or shared.

Dr Gootjes said he was hopeful something could be worked out by early in the new year which would go to the first board meeting in February for consideration.

The outcome of the review Mr Ryall has instigated, however, may affect what happens after that.

 

 

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