Unpacking specialist fees: influence of region, specialty, doctor and patient

The challenge​

Excessive specialist fee variation is a significant problem for patients and the healthcare system. For patients, it creates price opacity, access barriers, and the risk of "bill shocks," leading to financial hardship and forgoing care due to cost. It undermines the healthcare system by exacerbating health inequity and eroding public trust. It also presents ethical and reputational dilemmas for specialists, who must balance practice costs with the need to provide affordable care to less well-off patients.

The research​

Specialist fee variation in Australia has not been well understood due to historical data limitations. Leveraging the recently available Person Level Integrated Data Asset (PLIDA) from the ABS, this study aims to improve the knowledge base on this issue. Our research aims to quantify the extent to which fee variation is driven by differences between regions, specialties, and individual physicians. We also evaluate how doctors set their fees, and how this related to competition, GP referral patterns, waiting time, and quality of care. We also examine how doctors set different fees for different types of patients and what drives this disparity.

The impact​

This study decomposes the sources of specialist fee variation to help establish an evidence base for policy. By clarifying the relative importance of regional, specialty, and physician-level drivers, the findings will help inform the design of effective interventions to curb excessive fee variation and enhance price transparency of the specialist care market.

Our researchers

Melbourne Institute - Yuting Zhang, Ou Yang, Jongsay Yong, Susan Mendez, Ryan Liang.

Publications

Media