Healthy Skepticism Library item: 20520

Warning: This library includes all items relevant to health product marketing that we are aware of regardless of quality. Often we do not agree with all or part of the contents.

Publication type: Magazine

Cresswell A
Plan for GPs to share prescription savings
Australian Doctor 1999 Feb 122

Full text:

GPs stand to share the savings made by better prescribing and possible future controls on test ordering, under an agreement made by the General Practice Financing Group (GPFG).

The GPFG – which incorporates representatives of the four main GP bodies and four Federal Health Department officals – agreed last month that savings should be shared 50-50 between the Federal Government and the profession.

However, discussion continues among GPs over whether savings should be paid back to the profession at large, through rebates or incentives programs, to divisions or to the practices which make the savings.

The GPFG meeting discussed options and mechanisms for measure and share incentives regarding drug prescribing, and antibiotics, peptic ulcer drugs and cardiovascular drugs identified as potential areas where savings could be made.

A briefing paper prepared by the AMA after the meeting said examples of where savings could be made included use of non-drug options, better targeting of drugs and moves to cure duodenal ulcers with antibiotics rather than expensive acids suppressants.

GPFG member and RDAA president Dr Geoff White welcomed the move, although he said GPs needed to be extremely wary of the danger of creating perverse incentives – for example, incentives for GPs to refer patients to specialists, who could then prescribe expensive drugs which would not affect the GP’s prescribing profile.

For a similar reason he said it was important any payments went to divisions or larger units.

However, Australian Divisions of General Practice chairman Dr John Aloizos disagreed, saying savings could amount to $200-$500 a week per GP and they should share directly in the savings they or their practice colleagues created.

Both Dr White and Dr Aloizos said there was no question of creating budgets at practice or division levels, and there was no threat of budget-holding.