What is wrong with Medicare?

To the Editor: I would like to add my perspective, after nearly 50 years of experience in Australian medicine, to the very welcome articles by Moynihan1 and Webber.2

A few months after Medibank (Mark I) was launched in 1975, a colleague and I wrote a satirical article called “How to rob Medibank blind”.3 We deliberately wrote this article anonymously, so that it could be judged on its merits, and not by its authors. It was picked up by the Sydney Sunday Telegraph and featured across its middle pages. The responses of the then Minister for Health, Ralph Hunt, and Australian Medical Association (AMA) president, Lionel Wilson, were, to paraphrase their words, “doctors are not like that!” This view was shared by Medibank architect, economist John Deeble, when I asked, 20 years later, why he and his co-architect Richard Scotton had designed “a mechanism with an accelerator pedal but no brakes”. They had, he said, not thought it necessary.

Around that time, on behalf of the AMA, I advised on the restructuring of the Professional Services Review (PSR). I had been fortunate, meanwhile, to have chaired Professional Standards Committees of the New South Wales Medical Board, and to have sat on the bench of the NSW District Court Medical Tribunal, looking at alleged poor professional conduct.

This opened my eyes to the small number of doctors whose standards were poor overall, and led to the Board’s performance assessment program. Many had also been investigated by Medibank or Medicare.

Instead of having the PSR chasing illusionary and indefinable “over-servicing” by general practitioners (curiously, specialists were almost never investigated), I suggested peer review, whereby trustworthy, practising GPs or relevant specialists could advise on whether or not a doctor’s pattern of practice was inappropriate. This could be judged on an overall view of their work, much as was being done in the NSW Board’s Performance Program.

Another decade later, as Chairman of the Doctors Health Fund (then the AMA Health Fund), I attended a small dinner in Melbourne with the chairmen of a few restricted membership funds and the then Minister for Health, Tony Abbott, who asked me to sit next to him. I asked pointedly how he could justify commercial corporations’ continuing to make profits for their shareholders out of Medicare benefits which were supposed to reflect the value of a doctor’s professional services. How could there be so much fat in the system that these corporations could cream off their substantial profits?

His disappointing response was that it was too difficult to do anything about it. Webber is correct — both sides of politics are to blame.