A.C.C. to fight court decision

Press, 15 February 1982, Page 4

A.C.C. to fight court decision

PA • \ ■/ Wellington The Accident Compensation Corporation will appeal against the Court of Appeal’s recent"decision to pay'compensation for treatment of accident cases at privatehospitals. ■ Mr J. L. Fahy, managing director Of the corporation, said the decision of the Chief Justice (Sir Ronald Davison) had "put a different interpretation on the act from that which has been followed for a/number of years and which., has become well known to the medical profession.

"The effect which the decision could have on private hospital’ treatment costs is very much a matter of concern. The practice that the Chief Justice overruled has been in force since 1974. since the accident compensation scheme came into effect. Changes, in the legislation may ue» necessary."

Mr.‘Fahy said the issue revolved around the. meaning of "reasonable by New Zealand standards." He said the phrase-had been used by the corporation to measure. "not only the reasonableness of the fees actually charged but also whether in the circumstanced Vf each case, it was reasonable to place the costs of private hospital treatment on the levy and the taxpayer when/-adequate public hospital "facilities were available. One big medical insurance company has .welcomed the corporation’s decision. The “chief executive of

Southern Cross Medical Care -Society. Mr Peter Smith, said: "We are pleased to see it. We believe it is what should have been applied all along."

Mr-’Smith- said’ Southern Cross .had challenged the commission s .. interpretation of the act a number of times and the ruling was "a vindication of our attitude and the attitude of private hospitals and private medical practitioners."

He said he could not see the decision creating any problems for private hospitals or the sellers of private medical insurance. Labours Shadow Minister for Constitutional Affairs. Mr G. W. R. Palmer, said chaos and confusion were likely to be the lot of the accident compensation scheme as a result, of the decision.

He predicted a clogging up of private hospital beds, fewer people treated at public hospitals, a drain on the corporation's funds, and a further advantage to accident victims denied to those who were sick or diseased.

The- Private; Hospitals Association, however, "has welcomed the decision.

The president of the association. Miss B. A. Martin. said the decision could mean an increase in the number of people treated in private hospitals.

"If the decision is eventually unaltered and there is a resultant increase of cases treated in private hospitals, we believe this will not just benefit the financial position

of private hospitals; It should benefit the country as a whole by enabling a more efficient use of all New Zealand’s hospital resources, public and private." A number of patients already were treated in private hospitals and paid for by the corporation. In the year ended March 31. 1981. the number was 6310 at a cost of about $2.9 million, she said. Miss Martin said the corporation’s payments to private hospitals might increase, but her association did not believe the increase would be very great. >

"The net result may well be a saving to those who pay for both public hospital services ano A.C.C. funding — the public of New Zealand." she said.

Doctors disagree with the commission’s attitude to the treatment of accident patients in private hospitals, according to the Medical Association. The chairman of the association. Dr Jeremy Hopkins. said yesterday the commission's decision to appeal against the ruling was disappointing.

Dr Hopkins said the association considered the commission should wait and see what effect the judgment had before appealing against it.

The commission needed reminding that the- public hospital system was not free but funded by taxpayers, said Dr Hopkins. In some cases, he said, it was cheaper to use a private hospital.