Imaging price ‘war’

JOHN VAN KLAVEREN
A PUBLICLY funded radiography service is significantly undercutting private competitors in Geelong, according to an industry operator.
Lake Imaging operations director Craig Lightfoot said private services could lose up to 40 per cent of their business to the aggressive marketing of Barwon Health’s imaging service.
He warned that Barwon Medical Imaging might force private operators to cut “unviable” radiology and imaging services.
“BMI is competing with us for services and business but it has a competitive advantage,” Mr Lightfoot said.
“They have government funding for staff, equipment and overheads but we don’t.
“Because BMI enjoys public benevolent institution status they do not pay financial benefits tax or payroll tax. BMI also double dips by claiming Medicare rebates for services that have already been government funded.
“We can’t compete on price because of the extra level of funding the hospital gets.
“We’re not worried about competition but we do want to compete on a level playing field.”
Mr Lightfoot said the Productivity Commission had ruled that government businesses should not use their public sector ownership to competitive advantage against private competitors.
“This is clearly occurring in this region.
“We perform 200,000 services a year. If we have to cut back our services I don’t know where patients will go.”
Australian Diagnostic Imaging Association president Dr Ron Shnier said he was disappointed Federal Government had failed to respond to calls for indexation of Medicare rebates.
“Unlike other Medicare rebates, rebates for radiology services have not been indexed since 1998. This has seen a widening gap between what the Government pays for these services and the cost of providing them – a gap patients must pay.”
Barwon Medical Imaging Director Associate Professor Andrew Whan said BMI was committed to delivering its services as fairly as possible.
“BMI is a centre of excellence in the region and has to be equitable in how we bill patients. We treat all patients the same by charging the prescribed fee and believe we are not in breach of competitive neutrality rules.
“BMI provides imaging services for patients both in the hospital and in the community; emergency imaging services are available 24 hours a day/seven days a week.
“Ultimately, patients can exercise their discretion in choosing their imaging provider.”