Additional comments from Coalition Senators

1.1This Bill proposes to amend the Health Insurance Act 1973 (Cth) to remove the requirement that the Australian Medical Association agrees to the appointment of the Director of the Professional Services Review (PSR).

1.2It will also amend consultation requirements for the appointment of other statutory office holders of the PSR so as to enable consultation with relevant peak bodies directly.

1.3It will also establish the statutory office of Associate Director, and remove the requirement for the Chief Executive Medicare (CEM) to consult with stakeholder groups before the issuing of a notice to produce documents, and the Bill will also make minor amendments to update the wording of certain provisions in regards to the termination of appointments.

1.4In the 46th Parliament, October 2021, the former Coalition Government introduced the Health Legislation Amendment (Medicare Compliance and Other Measures) Bill, which later lapsed when Parliament was dissolved.

1.5In December 2022, the Parliament passed the Health Legislation Amendment (Medicare Compliance and Other Measures) Act 2022. The intent of this legislation was to strengthen and bolster the compliance powers of the PSR.

1.6The former Coalition Government had initiated the process of key reform in this space, and therefore supports the Bill.

Coalition’s position

1.7The Coalition is generally supportive of the Bill, noting that a number of the provisions in the Bill build on the reforms to the PSR Scheme initiated while the Coalition was in Government.

1.8However, the Coalition does have concerns over the failure of the Albanese Labor Government to properly consult with relevant stakeholders.We have serious concerns about the limited scope of consultation that has been undertaken.

1.9The Coalition notes concerns raised by industry bodies, through the submission process, relating to the removal of the requirement for the CEM to consult with stakeholder groups prior to issuing a notice to produce documents.

1.10In its submission, the RANZCP noted their concerns over these changes and their desire for further consultation:

The RANZCP reiterates its views that transparency and open dialogue with the profession is the best way to increase compliance and prevent over auditing. Clear information is required on what alternative provision will be put in place to reassure practitioners that engagement with the medical profession remains an integral part of the compliance program before this requirement is removed.

The RANZCP welcomes further consultation on any further amendments to the Health Insurance Act 1973.[1]

1.11This sentiment was also expressed by the Australian College of Rural and Remote Medicine who said:

Whilst removing input from the relevant professional body may well streamline the process, this is potentially detrimental to the practitioner who is required to produce documents under this section and is not in keeping with the recommendations from the Review.[2]

1.12The Coalition will support the Bill and the proposed changes in the interest of increasing transparency of the Professional Services Review Scheme. However, concerns regarding removal of consultation and engagement with stakeholders must be examined to ensure the views of industry bodies are considered.

1.13Coalition Senators recommend that the Bill be passed, noting concerns over the consultation process.

Senator Maria KovacicSenator Kerrynne Liddle

Footnotes

[1]Royal Australian and New Zealand College of Psychiatrists, Submission 12, [p. 1].

[2]Australian College of Rural and Remote Medicine, Submission 7, p. 3.