September 2007

EasyClaim slow

WA doctors are not racing to embrace the federal government’s EasyClaim system. In theory, the good idea of allowing people to claim Medicare rebates at the same time as they pay their doctor’s bill has been outweighed by the extra time in processing and the need for additional staff. The AMA has put forward a proposal that doctors be paid $1 for every claim made – pharmacists and banks receive a transaction fee. As a side issue, it was reported in the Financial Review that a number of senior AMA policy staff dealing with electronic health had resigned following the election of Dr Rosanna Capolingua.

Diluted WA health dollar

A report by the Federal Government shows that in 2005-2006, WA spent $3.5 billion in health (an increase of $170m) but due to a rising population this equated to $118 less per person than the preceding year (but still $894 per person, the second highest). The report also showed that the average number of beds per 1000 population fell 0.1 to 2.5 and the average waiting time for procedures increased by one day.

Terror in EDs

The Australian College for Emergency Medicine commissioned a report comparing a snapshot of ED performances between 2004 and 2007. No surprises here – amongst 70 hospitals nationwide backlogged patients consumed 40% of staff time, >8hr wait times were up by a third, and an average 10 patients were waiting for an inpatient bed. Various state health ministers hosed down the report, saying emergency plans were in place, the report was inaccurate, and beds would appear if elective surgery lists were cancelled. All this to counteract the ED docs’ claims that Oz hospitals were in no state to deal with a terrorist crisis or major disaster.

Primary block?

Primary Health Care is creeping up the Symbion share registry, now with about 14% of the company. Readers will recall that Symbion announced an agreement to merge its operation into Healthscope, which will require 75% shareholder approval. Primary Health Care is Australia’s most profitable general practice facility manager. Whilst 14% is not a complete blocking stake, analysts believe that it is getting close. In 2005 the proposed takeover of the remainder of IPN by Sonic was also blocked when interests associated with Primary Health Care purchased a blocking stake in IPN. Primary Health Care founder Edmund Bateman remains Australia’s richest doctor (BRW estimated net worth of $380m). It will be interesting to see what happens next.

Winners and losers

Perth biotech company Bone Medical shareprice rose on the back of positive announcements about its oral calcitonin formulation for treatment of osteoporosis, with biological efficacy demonstrated after administration of a capsule of its product, compared to calcitonin nasal spray. The company will be approaching the US FDA to develop a trial to determine biological end points. On the flip side, the fall-out from the sub prime mortgage market collapse in America impacted PMH Foundation which admitted it had invested $1.5m of its $13m portfolio with Basis Capital, a hedge fund that has sustained considerable losses. PMH Foundation is not alone amongst WA community groups burnt.