Australia investigates rising specialist medical fees

The Australian Government is investigating measures to combat excessive specialist medical fees following data showing out-of-pocket costs have risen significantly. A Department of Health consultation paper revealed that last year, Australians were charged more than five times the benchmark price for specialist visits on 1.24 million occasions.

Data indicates that out-of-hospital specialist fees rose by $458 since 2019, a 75 per cent increase. While the government is targeting a small minority of providers charging extreme fees, the Department of Health noted a broader trend where specialist costs have risen at twice the rate of inflation over the last decade. Dermatologists, obstetricians, and gynaecologists recorded high out-of-hospital charges, while anaesthetists saw the highest increases for in-hospital services.

Proposed solutions under consideration include implementing fee caps based on Medicare benchmarks, providing incentives for bulk billing, and requiring clearer cost disclosures to patients. Dr. Rachel David, CEO of Private Healthcare Australia, noted that while the focus on high charges is welcome, the issue reflects a wider affordability crisis that may force patients to delay necessary care or rely on public hospitals.