Pathology Providers Push for More Funding, Warn of Potential Co-payments
Australian Pathology, representing private pathology companies, has launched a campaign urging the government to increase funding for pathology services. They warn that without additional funding, patients may soon face co-payments for blood tests and other pathology services.
The campaign highlights the increasing demand for pathology services due to Australia's aging population and rising chronic illness rates. However, pathology providers claim that government funding has not kept pace with these demands, leading to financial strain on the sector.
The government recently indexed rebates for certain labor-intensive pathology services, but excluded many other tests from this increase. Pathology companies argue that this is insufficient and that rebates for all pathology services need to be increased to reflect rising costs.
They also claim that automation has reached its limits in terms of cost savings and that labor costs are now the biggest contributor to their financial challenges.
This is not the first time Australian Pathology has launched such a campaign. In 2016, they warned of potential co-payments after the government scrapped bulk billing incentives. The campaign ended after the government agreed to regulate the high rents charged to pathology companies in GP clinics.
Health economists believe that the current campaign is a "bargaining chip" and that pathology companies are "bluffing" about introducing co-payments. They point to previous instances where pathology companies introduced co-payments only to reverse them due to revenue losses.
However, some pathology providers believe that co-payments are "imminent" and that the industry is facing a financial crisis. They also warn that new restrictions on Medicare-funded vitamin B12 and urine specimen testing will further disadvantage patients, particularly women.
The government has announced an independent review into the fees for pathology services that were not included in the recent indexation. The outcome of this review will likely determine whether pathology companies will be able to increase their fees and potentially introduce co-payments for patients.