Doctors’ fees may rise 22% in March

Press, 20 January 1984, Page 1

Doctors’ fees may rise 22% in March

By

MICHAEL HANNAH,

Parliamentary reporter

Big increases are expected in professional fees when the price freeze expires on February 29.

Doctors’ fees could rise 22.5 per cent on average as doctors attempt to recoup cost increases since their last fee rise before the freeze was imposed in June, 1982.

Dentists are expected to increase their fees to take account of extra imported costs during the freeze — as much as 30 per cent, according to one dentist.

No immediate rise is expected in lawyers’ fees, however, although they will also be free to move once the freeze expires, except in areas such as conveyancing, which are controlled by a Law Society schedule. Ironically, lawyers’ fees could drop later in the year, when " the conveyancing schedule of fees is abandoned by the Law Society to allow more competition between lawyers. The New Zealand Medical Association said yesterday that a 22.5 per cent increase in general practitioners’ fees would be justified because most G.P.s were prevented from raising their fees to take account of cost increases in the year before the freeze was imposed. G.P.s’ fees are normally

adjusted between June and September each year, based on their accounts for the year to the previous March, according to Mr R. P. Caudwell, general secretary of the Medical Association.

The freeze was imposed when only a few doctors had had time to adjust their fees to a previous year of high inflation. A lower increase, however could be expected

from G.P.s who had adjusted their fees before June, 1982. Specialists’ fees did not follow such a definite pattern, Mr Caudwell said, and a smaller proportion of specialists might feel the need to raise their charges. Under the price controls applying from March 1, G.P.s will be allowed two price increases in 12 months. Bigger businesses, with an annual turnover of $3 million or more — such as some pathology laboratories, Mr Caudwell suggested — will have to submit proposed fee increases to the Trade and Industry Department for approval. Based on consulting fees for G.P.’s ranging frm ?9 to $l4 a visit, a 22.5 per cent

increase would add’another $2 to $3 a visit. Under normal circumstances, doctors were free to charge a fee they believed was commensurate with the service provided,

Mr Caudwell said. Fees should, therefore, vary with different types of consultations. The only exception was maternity fees, which are

controlled by the Govern-

ment, and where a 15 per cent to 15.5 per cent increase is awaiting Cabinet approval. Doctors’ night-call fees may also rise, but for another reason. Since Accident Compensation Corporation payments to doctors were reduced, the Medical Association has advised doctors to charge patients the A.C.C. portion of the fee, and leave patients to claim that portion back from the A.C.C. Any other rise in doctors’ fees, though, is expected to add heat to the argument between the Medical Association and the Government over the level of the general medical services benefit the Government pays to doctors. The New Zealand Dental Association is at present investigating costs incurred by dentists during the freeze. Members of the association’s national executive could not be reached as they are still on holiday, but the secretary of the Wellington branch, Mr R. A. Stallworthy, said he expected dentists would “edge up” their fees. Mr Stallworthy said that dentists’ costs had risen as much as 30 per cent during the freeze, because of the increase in imported materials, most of which was a result of the declining value of the New Zealand dollar. Changes in the price of silver would also be taken into account. However, the impact of these increases would vary from practice to practice, Mr Stallworthy said, and imported costs were not as big an element as wages, which have been held by the freeze. In some practices, imported costs would amount to 25 per cent of running costs, and so increases would not be too high. Such a case would suggest that an increase of about 7.5 per cent could be sought.