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GP clinics accused of 'rent rorts' by pathology providers | Australian Doctor

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GP clinics accused of 'rent rorts' by pathology providers Paul Smith

| 16 February, 2016 |

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Pathology companies are accusing GP clinics of charging grossly inflated rents for co-located collection centres. They claim demand for money has “exploded” in recent years. Pathology Australia, the lobby group for the industry, is calling on the Federal Government to use controversial laws introduced seven years ago, which ban practices from demanding rents 20% above the market rate. “The practice [of charging excessive rents] has exploded since the ill-conceived decision to allow an unlimited number of co-located collection centres to exist,” Pathology Australia says in its budget submission. “Very high rents are being paid for co-located collection centre space across the board. In many cases, per-square-metre rental rates are 20 times market rates." Related News: Rent for referrals rort rubbished The lobby group accused the Department of Human Services of failing to crack down on the supposed problem. In a previous attack on the policy, Pathology Australia claimed an unnamed rural practice in

Peta Fairweather Try being in pathology.....GP's and specialists TELL the patient that they will be bulk-billed. RACGP moots forcing GPs to detail specialists' costs · 1 hour ago Cato Wow - just wow! Those terrible GPs picking on poor little multi-national corporates like Sonic and Primary. Guess what pathologists - the... GP clinics accused of 'rent rorts' by pathology providers · 2 hours ago Cato I think there is a difference between knowing who bulk bills and who charges like a wounded bull, and actually being obligated to provide... RACGP moots forcing GPs to detail specialists' costs · 2 hours ago

Victoria received $14,000 per square metre for a room that would generate $415 per square metre if rented as a medical suite. “As a result, these payments continue without the knowledge of patients or the public who are unaware the referrers’ choice of pathology provider may be based on what could be considered a commission,” Pathology Australia added. It has been estimated that payments to practices to set up co-located collection centres are worth more than $100 million a year to general practices across Australia. Last week the AMA rubbished the accusation that practices were abusing the system, saying demand and supply simply meant pathology companies were paying what the rent space was worth to them. “Quite rightly, the government has been reluctant to interfere with legitimate commercial arrangements and has recognised that there has been significant competition between pathology providers to secure space in medical practices,” the AMA said in a statement.

http://www.australiandoctor.com.au/news/latest-news/gp-clinics-in-rent-rorts-row-wit... 16/02/2016

GP clinics accused of 'rent rorts' by pathology providers | Australian Doctor

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There has been almost no evidence of kickbacks being offered to practices in return for unnecessary pathology orders. A 2010 Medical Journal of Australia study found no difference in the rate of pathology ordering between practices that had co-located collection centres and those that did not. More information: MJA 2010; 193:114-19. « Previous | Next »

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