Did you know the average out-of-pocket costs for surgery are higher here than America? Overall, we pay more for common procedures such as prostate surgery, heart bypasses and hip and knee replacements than patients in the US and Europe[1].
There are also huge discrepancies between the states. In the ACT, patients had out-of-pocket costs for endoscopic prostate procedures of $2802 for the surgery – in South Australia it was only $183.
A raft of recent reports is highlighting the huge variation in specialists’ fees.
Data reveals wide discrepancies
The excessive fees being charged by some specialists have become such a problem the Royal Australasian College of Surgeons (RACS) has set up a committee to deal with the issue, with President Professor Michael Grigg promising “those charging excessive fees … will be dealt with by the College.”[2]
In the latest Urology Surgical Variance Report by Medibank and the Royal Australasian College of Surgeon[3]s, data revealed 27 per cent of surgeons charged patients no out-of-pocket expenses for endoscopic prostate procedures in 2014 but at least one charged an average of nearly $4000 – that’s a massive difference.
The difference in fees for radical prostatectomy, which can involve robotic technology, were even bigger. While 20 per cent of surgeons charged patients nothing extra, some patients paid over $10,000 with the average $2585.
It’s not just prostate surgery either, with their other reports also showing widely different fees for orthopaedic procedures and ear, nose and throat surgery.
But is it worth it?
However, paying more for surgery doesn’t always result in better patient treatment or outcomes. A recent University of Queensland study[4] found the outcomes for robotic prostate surgery and traditional open surgery were the same, though the more advanced surgery can blow out to over $10,000.
Cancer patients with private cover are often warned about huge waiting lists for surgery in the public system too, when in fact they are usually around the same.
While Australia’s health system ranks highly compared with many other countries, rising drug costs and premiums means people are already stretched financially when it comes to health insurance.
Being hit with huge out-of-pocket costs could add to the number of people choosing to downgrade or do away with their cover – only to be caught out when they face a medical emergency.
Now consumers can be in control
Private health insurers are now trying to make specialists reveal what they charge as they try to keep their own premiums down. Bupa, NIB and Medibank already publish information on the average cost of procedures.
Now they have a new weapon. Bupa and HBF have announced they will be joining NIB’s consumer website Whitecoat and expanding the online directory to include specialists by the end of this year.
Consumers will be able to find and compare surgeons, see their clinical experience and patient outcomes and rate their service.
This is good news. But you will need to be one of their six million members.
[1] International Federation of Health Plans – 2013 Comparative Price Report: Variation in Medical and Hospital Prices by Country
[2] Royal Australasian College of Surgeons media release: ‘Patient Information on Excessive Fees’ – Friday 27 March, 2015
[3] Royal Australasian College of Surgeons and Medibank Surgical Variance Report – Urology 2016
[4] The University of Queensland media release: ‘Trial casts doubt on relative benefits of robotic prostate surgery’ – 27 July 2016
