A.C.C. ‘must fund private treatment’

Press, 12 February 1982, Page 4

A.C.C. ‘must fund private treatment’

PA Wellington The Accident Compensation Corporation cannot refuse to meet the cost of treating accident cases in private hospitals. The Chief Justice (Sir Ronald Davison) has made this ruling in a judgment delivered in the High Court. The ruling was sought by the Attorney-General in a related action on behalf of a Palmerston Nor,th ortho-

paedic surgeon, Mr Peter Court Grayson. A medical handbook published by the corporation and which spelled out policy, said the corporation recognised that private hospitals played an important part in the surgical treatment of some accident cases. But because the corporation had a responsibility for the proper disbursement of funds compulsorily contributed by the public, it could not undertake to meet the

cost of private hospital treatment, with accompanying specialist fees, in every case where the doctor and his patient might wish it. The Chief Justice held that the Accident Compensation Act required the corporation to pay the costs of medical treatment whether in public or private hospitals, and the only discretion reserved to the corporation was to determine that the amount paid was reasonable by New Zealand standards.