Commonwealth of Australia Explanatory Memoranda

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HEALTH INSURANCE AMENDMENT (GENERAL PRACTITIONERS AND QUALITY ASSURANCE) BILL 2020

                                 2019-2020



    THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA




                    HOUSE OF REPRESENTATIVES




HEALTH INSURANCE AMENDMENT (GENERAL PRACTITIONERS AND
              QUALITY ASSURANCE) BILL 2020




                    EXPLANATORY MEMORANDUM




  (Circulated by authority of the Minister for Health, the Hon Greg Hunt MP)


HEALTH INSURANCE AMENDMENT (GENERAL PRACTITIONERS AND QUALITY ASSURANCE) BILL 2020 OUTLINE The Health Insurance Amendment (General Practitioners and Quality Assurance) Bill 2020 has two schedules. The Bill simplifies Medicare administrative processes for recognition as a specialist general practitioner (GP) for Medicare purposes under the Health Insurance Act 1973 (HI Act) and will align Medicare eligibility for GPs with the National Registration and Accreditation Scheme (NRAS) registration requirements. The Bill also removes references to repealed legislation in relation to the definition of a quality assurance activity by amending subsection 124W(1)(a) of Part VC of the HI Act. Schedule 1 simplifies Medicare administrative processes by aligning Medicare eligibility for GPs with the NRAS registration requirements under the Health Practitioner Regulation National Law Act 2009 (Qld) (National Law). The current Commonwealth legislative framework for recognition as a GP for Medicare purposes is implemented in legislation that includes the following:  HI Act;  Health Insurance Regulations 2018 (HIR); and  General Services Medical Table 2019. The HI Act provides various pathways for recognising GPs for Medicare purposes. The current pathways necessitate direct communication exchange between Services Australia and relevant organisations (Royal Australian College of General Practitioners (RACGP) and Australian College of Rural and Remote Medicine (ACRRM)) to determine eligibility for Medicare rebates. In determining eligibility for Medicare rebates, the RACGP or ACRRM (the colleges) confirm the medical practitioner holds a valid fellowship with their college and is a specialist GP. Every three years, the colleges advise Services Australia that GPs are compliant with Continuing Professional Development (CPD) requirements to maintain patient access to higher Medicare rebates. Under the NRAS, the Medical Board of Australia (MBA) and the Australian Health Practitioner Regulation Agency (Ahpra) are responsible for maintaining a public register of health practitioners regulated under the NRAS. Under the National Law, all specialist practitioners are required to make an annual declaration to the Ahpra to state they are compliant with mandatory CPD requirements. This Ahpra data provides information on those practitioners who hold registration in the specialty of general practice with the MBA and will be used to determine a GP's access to Medicare rebates. The Bill therefore provides a new definition of GP as a medical practitioner who is registered under the National Law in the specialty of general practice or a medical practitioner prescribed by the HIRs. As a consequence of the new definition of a 'general practitioner' provided in the Bill, the Chief Executive Medicare will no longer be required to make determinations in relation to a GP, simplifying processes for specialist recognition as a general 1


practitioner for Medicare purposes. There will be no need for Services Australia to liaise with bodies like the RACGP and ACRRM and instead will rely on the Ahpra public register to determine eligibility to access higher Medicare rebates. This is consistent with other specialities under the National Law. The Bill also provides for a new definition of GP for the purposes of the HIR. These changes acknowledge GPs who are not fellows of the RACGP or ACRRM, but are still entitled to higher Medicare rebates. This cohort involves older medical practitioners who were working in general practice prior to it becoming a specialty in its own right in 1996. This change amends the HI Act and will result in the repeal of the Health Practitioner Regulation (Consequential Amendments) Act 2010 (Consequential Amendments Act) and require consequential amendments to the HIR and the GMST. Amendments to the definitions for medical practitioner, midwife, nurse practitioner, optometrist, osteopath, chiropractor, dental practitioner, physiotherapist, and podiatrist are also required to align with the National Law. Schedule 2 of the Bill removes references to repealed legislation in relation to the definition of a quality assurance activity by amending subsection 124W(1)(a) of Part VC of the HI Act. The Bill removes the reference to the Health Care (Appropriation) Act 1998, which was repealed on 1 July 2009, and replaces it with the reference to the Federal Financial Relations Act 2009 (FFRA), which is the current legislative vehicle for Commonwealth payments to States and Territories for public hospital services. Financial Impact Statement The financial impact of the Bill to the Commonwealth includes changes to Services Australia payments systems. While there will be administrative savings within Medicare from a reduction in staffing resources to process specialist recognition applications from general practitioners, the cost of changes to the payment system is $1.4 million over two years. Funding was announced as part of the 2018 -19 Budget, Stronger Rural Health Strategy. The amendment to the statutory protective framework for quality assurance activities in Part VC of the HI Act is cost-neutral. 2


Statement of Compatibility with Human Rights Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 HEALTH INSURANCE AMENDMENT (GENERAL PRACTITIONERS AND QUALITY ASSURANCE) BILL 2020 This Bill is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. Overview of the Bill The Bill simplifies Medicare administrative processes for recognition as a specialist general practitioner (GP) for Medicare purposes under the Health Insurance Act 1973 (HI Act) and will align Medicare eligibility for GPs with the National Registration and Accreditation Scheme requirements. The Bill provides for a new definition of GP as a medical practitioner who is registered under the National Law in the speciality of general practice or a medical practitioner prescribed by the HIR. Currently once a GP acquires fellowship with the RACGP or ACRRM, the GP must apply to Services Australia to be recognised as a specialist GP and to gain higher Medicare rebates for their patients. In determining ongoing eligibility for higher Medicare rebates, the RACGP or ACRRM (the colleges) confirm to Services Australia every three years that their fellows holds valid fellowship with their college, are a specialist GP and are compliant with CPD requirements. Under the National Law, all specialist practitioners are required to make an annual declaration to Ahpra to state they are compliant with mandatory CPD requirements. Under the HI Act, Services Australia uses this declaration to confirm specialist practitioners are, and remain, eligible for higher Medicare rebates. This Bill amends the HI Act to align the requirements for GPs to access higher Medicare rebates with those of other specialist practitioners. The Bill also provides for a new definition for GPs who are not fellows of the RACGP or ACRRM but are still entitled to higher Medicare rebates. This cohort involves older GPs who were working in general practice prior to it becoming a speciality in its own right in 1996. Amendments to the definitions for medical practitioner, midwife, nurse practitioner, optometrist, osteopath, chiropractor, dental practitioner, physiotherapist, and podiatrist are also to be made to align them with the National Law. Schedule 2 of the Bill removes references to repealed legislation in relation to the definition of a quality assurance activity under the Qualified Privilege Scheme (QPS). It removes reference to a now repealed Act and replaces it with the current Act which provides for Commonwealth payments to States and Territories for public hospital services. 3


Human rights implications This Bill promotes the following articles of the International Covenant on Economic, Social and Cultural Rights (ICESCR):  The right of individuals to the enjoyment of the highest attainable standard of physical and mental health (Article 12);  The right to work, including the right of everyone to the opportunity to gain a living by work which he/she freely chooses or accepts, and will take appropriate steps to safeguard this right (Article 6)  The right to of everyone to the enjoyment of just and favourable conditions of work, including equal opportunity for everyone to be promoted in his/her employment to an appropriate higher level, subject to no considerations other than those of seniority and competence (Article 7(c)) The Bill also engages the right to protection of the law against interference with privacy under Article 17(2) of the International Covenant on Civil and Political Rights (ICCPR). Article 12 of the ICESCR The right to health includes the obligation to provide timely and appropriate health care, which is 'available, accessible, acceptable and of a high quality'. Furthermore, accessibility includes both physical accessibility to health services and economic accessibility, namely the provision of health services which are affordable to all. This Bill amends the HI Act to remove administrative processes that may impede or delay GP access to higher Medicare rebates, which in turn limits patients' accessibility to full Medicare benefits for health services available under the HI Act. By removing the additional administrative process for recognition as a specialist GP, GPs can be registered for higher Medicare rebates as soon as they are registered with Ahpra; and are no longer reliant on information provided by the colleges to Services Australia every three years to continue to access higher Medicare rebates. This means that GPs anywhere in Australia can access higher Medicare rebates more simply and efficiently in a single registration process. The amendments also ensure that GPs provide high quality health services by continuing to link access to higher Medicare rebates to GP compliance with CPD requirements. Articles 6 and 7 of the ICESCR The Bill supports the right to work under Articles 6 and 7(c) of the ICESCR by supporting the rights of GPs to gain equitable and timely access to Medicare rebates, which directly affects their employability in private practice. Many practices seek GPs who hold and maintain access to higher Medicare rebates as their patients are unable or unwilling to pay out of pocket costs for eligible health services. At present, access to higher Medicare rebates is conditional on completing administrative processes that are duplicative. Additionally, such processes can result in delays in accessing rebates, which can impact a GPs ability to gain and retain work. The Bill removes this duplicate process and streamlines access to higher Medicare rebates for all GPs registered as specialist GPs with Ahpra. This information is 4


electronically transferred to Services Australia annually and ensures that GPs are able to access and maintain Medicare rebates more simply. The Bill also provides simplified and clearer administrative arrangements for medical practitioners who wish to pursue higher qualifications, specifically the attainment of Fellowship, and to access Medicare rebates commensurate to this additional qualification. Article 17(2) of the ICESCR Part VC of the HI Act limits the right to no interference with a person's privacy as contained in Article 17(2) through the collection, storage, security, use, disclosure or publication of personal information relating to individual health where provided for the purposes of the QPS. A quality assurance activity under the HI Act involves measuring the effectiveness of a procedure or process carried out by health professionals and making evidence based improvements in relation to the particular health care services. Qualified privilege arrangements are intended to address concerns by clinicians that information or data they provide may be attributed directly to them. Qualified privilege addresses these concerns by encouraging health care professionals to participate openly in quality assurance activities by:  ensuring the confidentiality of information that may identify individuals, either directly or indirectly, where this information is provided solely as a result of a declared quality assurance activity; and  protecting individuals from the risk of civil proceedings in relation to a committee, whose members or a majority of the members are health professionals that are the subject of a declared quality assurance activity. When making a decision to accept a qualified privileged activity and thus a limitation on the right to no interference with personal privacy, the Minister, or delegate of the Minister, must be satisfied it is in the public interest to declare the activity on the grounds that the activity will:  encourage participation in the activity, or in the case of an activity having previously been undertaken, encourage participation to a greater extent than in the previous activity; and  encourage acceptance, implementation and monitoring of any recommendations which arise from the activity. Each declaration of Qualified Privilege is a disallowable legislative instrument. Conclusion This Bill promotes Articles 6, 7(c) and 12 of the ICESCR and limits the rights in Article 17(2) of the ICCPR. The limitation on the rights in Article 17(2) is confined by legislated decision criteria and each declaration is a disallowable instrument. The Bill is compatible with human rights. The Hon Greg Hunt MP, the Minister for Health 5


HEALTH INSURANCE AMENDMENT (GENERAL PRACTITIONERS AND QUALITY ASSURANCE) BILL 2020 NOTES ON CLAUSES Clause 1 - Short Title This clause provides that the Bill, once enacted, may be cited as the Health Insurance Amendment (General Practitioners and Quality Assurance) Act 2020. Clause 2 - Commencement Subclause 2(1) provides that each provision of the HI Act specified in column 1 of the table set out in the subclause commences or is taken to have commenced in accordance with column 2 of the table. Sections 1 to 3 commence on the day this Act receives Royal Assent. Schedule 1 commences 12 months after Royal Assent, unless an earlier date is fixed by proclamation. Data analysis indicates 7,700 GPs may be required to take some form of administrative action to update their registration details with the MBA or apply for Medicare recognition with Services Australia. Commencement 12 months after Royal Assent will provide time for these GPs to comply with the new requirements and maintain their access to higher rebates. Consequential amendments are also intended to be made to the HIR, to take effect at the same time as the commencement of the amendments in Schedule 1 to this Act. Schedule 2 commences on the day after this Act receives Royal Assent. Clause 3 - Schedules This clause provides that each Act that is specified in a Schedule to this Bill is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item has effect according to its terms. Schedule 1 amends the HI Act to provide a new definition GP as a medical practitioner who is registered under the National Law in the specialty of general practice which will make them eligible for access to higher Medicare rebates. Prior to commencement, details of the grandfathering provisions to ensure continued access to higher Medicare rebates will be included in the HIR. Schedule 1 also aligns the definitions for medical practitioner, midwife, nurse practitioner, optometrist, osteopath, chiropractor, dental practitioner, physiotherapist, and podiatrist with the National Law. Schedule 2 amends the definition of a 'quality assurance activity' in Part VC of the Act, with the updated reference to the current FFRA, which is the current legislative vehicle for Commonwealth payments to States and Territories for public hospital and other healthcare services. The amendment provides for validation of declarations of quality assurance activities made that involved the assessment or evaluation of public hospital services that were not funded under the repealed Health Care (Appropriation) Act 1998. 6


Schedule 1 - General Practitioners Items 1, 3, 5, 6, and 8 to 13 Subsection 3(1) definitions Items 1, 3, 5, 6, and 8 to 13 amend subsection 3(1) of the HI Act, to ensure definitions of health practitioners are consistent with definitions of health practitioners regulated under the National Law. Current definitions relating to health practitioners in the HI Act refer to registration or "licencing" under a State and Territory law which have been superseded by the National Law. Item 2 Subsection 3(1) (definition of consultant physician) Item 2 amends the definition of a consultant physician to exclude general practitioners and prevent GPs accessing Medicare items that are the domain of specialties other than general practice under the HI Act. Item 4 Subsection 3(1) (definition of general practitioner) Item 4 repeals the current definition of 'general practitioner' in subsection 3(1) and substitutes a new definition. As a consequence of this amendment, sections 3EA and 3F of the HI Act are repealed (item 25 refers). The new definition of a 'general practitioner' is (a) a medical practitioner who is registered under the National Law in the specialty of general practice; or (b) a medical practitioner of a kind prescribed by the HIR. Paragraph (b) of the definition is intended to capture a medical practitioner who is not on the MBA's specialist register as a specialist general practitioner. GPs who are not registered as a specialist GP by the MBA but who are currently eligible for higher rebates by virtue of being on the Vocational Register are intended to be defined in the HIR. Item 7 Subsection 3(1) Item 7 provides a definition of the National Law in relation to a State or Territory as the Health Practitioner Regulation National Law set out in the Schedule to the Health Practitioner Regulation National Law Act 2009 (Qld) as it applies as a law of a State or Territory. For Western Australia, the National Law is the Health Practitioner Regulation National Law (WA) Act 2010 (WA) so far as it corresponds to the Queensland Health Practitioner Regulation National Law. Items 14, 16, and 23 Subsection 3(1) (definition of a specialist) and Subsection 3(1) Items 14, 16, and 23 insert the words '(other than general practice)' after the words 'particular specialty', items 14, 16 and 23 insert the words '(other than general practice)' to prevent GPs accessing Medicare rebates that are the exclusive domain of other specialities under the HI Act. Item 15 Subsection 3(1) (definition of vocationally registered general practitioner) Item 15 repeals the definition of 'vocationally registered general practitioner' as there will no longer be a Vocational Register of General Practitioners, as a consequence of the new definition of general practitioner (refer to Item 4 and Item 25). 7


Items 17, 18 and 24 Paragraph 3D(2)(b), Subsection 3D(3) and Subsection 3DC(1) and 3E(1) Items 17, 18 and 24 insert the words '(other than general practice)' after the word 'specialty', to prevent GPs accessing Medicare rebates that are the exclusive domain of other specialities under the HI Act. Item 19 Subsection 3D(5) Item 19 inserts the words '(other than general practice)' after the words 'a specialty', to prevent GPs accessing Medicare rebates that are the exclusive domain of other specialities under the HI Act. Item 20 Subsections 3DA(1) and (3) Item 20 removes 'speciality under' and substitutes 'speciality (other than general practice) under', to prevent GPs accessing Medicare rebates that are the exclusive domain of other specialities under the HI Act. Item 21 Subsections 3DB(1) Item 21 removes 'speciality if' and substitutes 'speciality (other than general practice) if', to prevent GPs accessing Medicare rebates that are the exclusive domain of other specialities under the HI Act. Item 22 Paragraph 3DB(1)(b) Item 22 repeals paragraph (1)(b) and substitutes '(b) the medical practitioner is registered under the National Law as a specialist in a particular specialty (other than general practice', to prevent GPs accessing Medicare rebates that are the exclusive domain of other specialities under the HI Act. Item 25 Sections 3EA, 3EB, 3F, 3G and 3H Item 25 repeals the following sections of the HI Act:  Section 3EA: 'Recognised Fellows of the Royal Australian College of General Practitioners'  Section 3EB: 'Revocation of determinations'  Section 3F: 'Vocationally registered general practitioners'  Section 3G: 'Removal from the register'  Section 3H 'References to RACGP may be varied' The HI Act currently contains three pathways to recognition as a general practitioner: (a) a medical practitioner in respect of whom a determination under section 3EA is in force (holds fellowship with the RACGP); or (b) a person registered under section 3F as a vocationally registered general practitioner; or (c) a medical practitioner of a kind specified in the HIR. Under the NRAS, the MBA and Ahpra are responsible for maintaining a public register of health practitioners regulated under the NRAS. This Ahpra register provides information on those practitioners who hold registration in the specialty of general practice with the MBA and will be used to determine a GP's access to Medicare rebates. As a consequence of the new definition of a 'general practitioner' provided in the Bill, the Chief Executive Medicare will no longer be required to make determinations in relation to a GP, simplifying processes for specialist recognition as a general practitioner for Medicare purposes. There will be no need for Services 8


Australia to liaise with bodies like the RACGP and ACRRM and instead will rely on the Ahpra public register to determine eligibility to access higher Medicare rebates. This is consistent with other specialities under the National Law. In 2010, the MBA transitioned those practitioners who were vocationally registered general practitioners to appear on the public register as specialists without fellowship of the RACGP or ACRRM. There are small groups of medical practitioners who may be affected by these changes and who are intended to be dealt with in the HIR, through grandfathering provisions or transitional provisions. The intention of these provisions is that no medical practitioner who currently has access to higher rebates will be disadvantaged. The Vocational Register of General Practitioners provides for medical practitioners from 1989 to 1996 who worked predominately in general practice and whom the RACGP certifies have met CPD requirements to be vocationally registered to allow access to higher rebates. The second cohort of practitioners' post 1996 must additionally hold fellowship of the RACGP or ACRRM. Grandfathering and transitional provisions are intended to be included in the HIR for the purposes of the definition of a general practitioner under subsection 3(1) of the HI Act (Item 4 refers) will include a medical practitioner who: a) holds registration with the MBA; b) has been previously approved by the General Practice Recognition Eligibility Committee to be placed on the vocational register; and c) has met minimum requirements for taking part in CPD activities for the 2017-19 triennium which are the requirements for specialist GP registration under the NRAS. Section 3H is also repealed as a consequence of the repeal of sections 3EA, 3EB, 3F, and 3G that has made section 3H redundant. Items 26 to 28 and 30 Paragraphs 19AA(1)(a) and (2)(a), Subsections 19AA(4), Subsection 19AA(5) (definition of intern) and Subsections 19AB(1) and (2) Items 26 to 28 and 30 amend paragraphs 19AA (1)(a) and (2)(a), subsection 19AA(4), the definition of intern under subsection 19AA(5) and subsections 19AB(1) and (2) to insert 'registered' as a consequence of the amendments under Items 29 and 31 below, to provide for when a registered medical practitioner (refer to item 29 and 31) is not eligible for a Medicare benefits under 19AA and 19AB. Items 29 and 31 Subsection 19AA(5) and Subsection 19AB(7) Items 28 and 30 insert a definition of 'registered medical practitioner' in sections 19AA and 19AB. Section 19AA provides that a Medicare benefit is not payable in respect of a professional service rendered by a specified medical practitioner. Section 19AB provides that a Medicare benefit is not payable in respect of a professional service by a person who is an overseas trained doctor or who is a foreign graduate of an accredited medical school, subject to certain exemptions. These amendments protect current arrangements in restricting access to general practice Medicare rebates by applying a specific definition of 'registered medical 9


practitioner' which only applies to sections 19AA and 19AB of the HI Act. A medical practitioner referred to in these sections is either registered under the National Law or registered or licensed as a medical practitioner under a law of a State or Territory that provided for the registration or licensing of medical practitioner before the commencement of the National Law. This definition is necessary as these provisions cover periods prior to the commencement of the National Law. Item 32 Subsection 19C(2) Item 32 repeals subsection 19C(2) which provides for the definition of 'practitioner's licence', because a medical practitioner is now required to be registered under the National Law. Item 33, 34 and 35 Paragraphs 19C(3)(a) and (b), Paragraphs 19C(4)(a) and (b) and Paragraphs 19CB(1)(a) and (b) Section 19C provides that a Medicare benefit is not payable where the medical practitioner in question is not authorised to render a service, or authorised only in circumstances specified in their registration to render that service and renders such services in other circumstances. Section 19C allows the Minister to make a direction to allow for the payment of a Medicare benefit in relation to the rendering or a particular service even though the person rendering the service is not authorised or authorised only to provide the services in particular circumstances and has provided the service in other circumstances. Section 19CB provides that it is an offence for a medical practitioner to render a service not authorised by his or her registration as a medical practitioner. Consistent with the amendments relating to the registration of a medical practitioner under the National Law, items 33, 34 and 35 repeal paragraphs 19C(3)(a) and (b), paragraphs 19C(4)(a) and (b) and paragraphs 19CB(1)(a) and (b), and substitute them with amended paragraphs to now refer to registration under the National Law and authorisation (or no authorisation) under the medical practitioner's registration under the National Law to render a particular professional service. The current paragraphs refer to licenses granted under a State or Territory law. Item 36 Subsection 19CB(1) Item 36 removes the words 'in that State and Territory' as this is no longer referred to in paragraphs 19CB(1)(a) and (b) (refer Item 35) which now refers to registration under the National Law as the source of the authorisation to render a professional service for the purposes of Medicare. Item 37 Paragraph 19CB(1)(d) Item 37 is a minor technical amendment as a consequence of the changes to refer to the registration of a medical practitioner under the National Law. Item 36 omits the term 'the practitioner's licence' and replaces this term with 'the practitioner's registration' under the National Law. Item 38 Subsection 19CB(3) Item 38 repeals subsection (3) and substitutes a new subsection (3) that refers to authorisation under the medical practitioner's registration to render a particular professional service under the National Law. The current subsection refers to a practitioner's licence which under state and territory law is no longer relevant. 10


Item 39 Subsection 19DA(1) Item 39 repeals subsection 19DA(1) as the definition of 'deregistered practitioner' is now provided in subsection (2) (refer item 41). Item 40 Subsection 19DA(2) Item 40 repeals subsection (1) at item 39 and replaces it with subsection 19DA as sub paragraph (1). Item 38 repeals subsection 19DA(1) and item 40 renames the current s19DA(2) as 19DA(1) as a consequence. Item 41 At the end of section 19DA Section 19DA of the HI Act provides that a deregistered medical practitioner or a person acting on his or her behalf must not render any medical service to which an item relates, unless the practitioner (or a person acting on his or her behalf) takes reasonable steps to inform the patient (or the patient's carer) that a Medicare benefit would not be payable in respect of the medical service. Item 41 adds a new subsection (2) that provides for a new definition of 'deregistered practitioner' to recognise registration under the National Law. The deregistered practitioner is a medical practitioner who was previously registered as a medical practitioner under the National Law but is not currently registered under the National Law at the particular time. For example, the registration of the particular practitioner may have been revoked under the National Law. Item 42 At the end of section 20 Item 42 adds a new subsection (7) that provides for a definition of 'general practitioner' under Section 20 which was previously defined in the HIR. This definition is used to determine what constitutes a GP for the purpose of the 90 day Pay Doctor Via Claimant (PDVC) arrangements. The definition of 'general practitioner' includes vocationally registered GPs, GP trainees, and other medical practitioners working in GP practice (overseas trained doctor and domestic trained doctors who registered prior to 1996 and did not pursue vocational training). The definition in the HIR will be repealed. Items 43 and 44 Paragraph 93(8)(b) and Subsection 93(8) Section 93 of the HI Act authorises the Director of the Professional Services Review Panel to set up a Committee in accordance with Division 4 of Part VAA of the Act and make a referral to the Committee to investigate whether a person under review engaged in inappropriate practice in providing the services specified in the referral. Subsection 93(8) requires the Director to include in the referral any statement of his or her concerns that was sent to a person or body under section 106XA or section 106XB arising from opinions that the Director formed in the course of the review. The concern can be that any conduct by the person under review caused or was causing, or was likely to cause a significant threat to life or health of any person (paragraph 93(8)(a) and section 106XA), or that the person failed to comply with professional standards (paragraph 93(8)(b) and section 106XB). Item 43 substitutes 'body' for 'bodies,' and item 44 substitutes 'the person, body or bodies' for 'the person or body,' to recognise that there may be more than one appropriate body specified in the regulations for new subsection 106XB(3) (see Item 46). 11


Item 45 and 46 Paragraphs 106XB(2)(c) and (d) and Subsection 106XB(3) Division 5A of Part VAA of the HI Act relates to the referral of professional issues to regulatory and other bodies. Subsection 106XB(1) requires a Committee or the Determining Authority to give to the Director of the Professional Services Review a written statement of its concerns if it forms the opinion that a practitioner under review failed to comply with professional standards. Materials or copies of materials on which the opinion was based are also provided with the written statement. The Director must send the statement to the 'appropriate body'. Similarly, under subsection 106XB(2), if the Director forms the opinion that a practitioner under review has failed to comply with professional standards, the Director must prepare a statement of his or her concerns, attach to the statement materials or copies of materials on which his or her concerns were based and send that statement with the attached documents to the 'appropriate body'. Item 46 repeals the current subsection 106XB(3) and substitutes a new subsection providing for the appropriate body or bodies, who would need to be advised when a registered practitioner fails to comply with professional standards for the National Law, to be specified by the regulations. Item 45 substitutes 'body' for 'bodies' to recognise that there may be more than one appropriate body specified in the regulations for new subsection 106XB(3). Item 47 Subsection 130(5C) and (5D) Section 130 prohibits a specified person to make records of, or divulge or communicate to any person any information with respect to the affairs of another person acquired by the first person in the performance of his or her duties or in the exercise of his or her powers or functions under the HI Act, subject to certain exemptions. Item 47 repeals sub-sections 130(5C) and (5D) as these provisions refer to the RACGP and are now redundant because of the repeal of sections 3F and 3G (Item 24 refers). Item 48 and 49 Paragraph 130(6)(e) to (eb), Paragraphs 130(7)(c) to (cb) Items 48 and 49 repeal the paragraphs (6) to (eb) in subsections (6) and (7) respectively, and replace with amended paragraphs that refer to the registration of the specified healthcare professionals under the National Law as defined in subsection 3(1) as amended. Item 50 At the end of paragraphs 130(7)(e), (f) and (fa) Item 50 adds the word 'or' at the end of sections 130(7)(e), (f) and (fa). This is a technical amendment. Item 51 Paragraphs 130(7)(g) to (gb) Item 51 repeals paragraphs 130(7)(g) to (gb) and substitutes a new paragraph (g) to refer to and specifically recognise requirements under the National Law applying to these health practitioners as defined under the amended definitions under subsection 3(1) of the HI Act. 12


Item 52 Paragraph 130(9)(c) Item 52 is a consequential amendment and omits references to repealed paragraphs in subsections 130(6) and (7) and reflects amendments implemented by new paragraphs 130(6)(e) and (7)(g) (Items 48 and 51 refer). Item 53 Paragraph 130(9)(c) Item 53 is a consequential amendment and omits the words 'law referred to in that paragraph' and substitutes with the words 'National Law' to specifically refer to the National Law, consistent with the changes made under subsection 3(1) relating to the definitions of healthcare practitioners. Part 2 - Application Provisions Item 54 Alternative method of recognition as a specialist or consultant physician The Bill amends section 3DB to exclude from its operation a specialist in general practice and provide that registration requirements for a medical practitioner applying for a determination by the Minister of Health are those applying under the National Law (refer to Items 21 to 23). Item 52 provides that section 3DB as amended applies in relation to an application that is made before, on or after the commencement of this Schedule. Thus on commencement, applications by a medical practitioner to be recognised as a specialist GP under section 3DB, that are made before, on or after the commencement of Item 54 will no longer be within the scope of section 3DB and the Minister will not have the power to make that particular determination. Item 55 Divulging of certain information Item 55 provides that section 130 of the HI Act as amended by Schedule 1, applies in relation to information acquired before, on or after the commencement of this Schedule (that is, commencement of amendments made to section 130 of the HI Act). This is a consequential amendment to ensure there are no gaps in the powers to share information directly at hand or acquired prior to the Schedule 1 updates to reflect changes under the National Law. Part 3 - Repeals Item 56 repeals the Health Practitioner Regulation (Consequential Amendments) Act 2010 (the Consequential Amendments Act). In May 2010, the Australian Parliament passed the Consequential Amendments Act. Schedule 1 of the Consequential Amendments Act amends the HI Act to make references to categories of medical practitioners under the HI Act consistent with the arrangements under the National Law. Schedule 1 of the Consequential Amendments commences on a day to be fixed by Proclamation . Due to complexities in ensuring translation of HI Act specialties and consultant physician categories with MBA specialties and the costs of Services Australia system changes, Schedule 1 of the Consequential Amendments Act was not proclaimed. Schedule 1 of the Bill will align GP recognition for Medicare rebates with NRAS requirements, reducing red tape for GPs and Services Australia. Aligning of the other medical specialties with MBA specialties is proposed to occur at a later date, after successful completion of the GP changes and engagement with relevant stakeholders. 13


The Bill will implement the changes proposed in the Consequential Amendments Act for general practitioners making the unproclaimed Consequential Amendments outdated and redundant. Schedule 2 - Quality assurance confidentiality Part 1 - Amendments Item 1 Subsection 124W(1) (subparagraph (a)(iii) of the definition of quality assurance activity) Repeals subsection 124W(1) subparagraph (a)(iii) to substitute the outdated reference to 'the former Health Care (Appropriation) Act 1998' with the correct reference to hospital services funded by the Commonwealth through Part 3A of the FFRA. This item removes the ambiguity by making it clear that an assessment or evaluation of public hospital related services that received payments, or are eligible to receive payments under the FFRA, are specifically included in the definition of a quality assurance activity. Part 2 - Validation Item 2 Validation of declarations Subsection (1) ensures that activities declared on or after 1 July 2009 are taken to have been valid declarations if at the time the declaration was made, it was a quality assurance activity within the meaning of subsection 124W(1) of the HI Act, as amended by this bill. Subsection (2) ensures the validity of any existing declarations made under the provisions of the HI Act is not affected by the outdated reference to the former Health Care (Appropriation) Act 1998 remaining in the definition of a quality assurance activity, before that reference was corrected by this bill. This item is retrospective in its application because the delay in amending item 1 to reference the correct legislation is an administrative delay. Participants of the QPS believe in good faith that their declarations are valid and it was the Commonwealth's intention that they be so. There has been no breach of privacy in relation to public disclosure in the period on or after 1 July 2009. Item 3 Compensation for acquisition of property Item 3 applies in the event that the validation provision at item 2 would result in an acquisition of property from a person otherwise than on just terms, the Commonwealth is liable to pay that person a reasonable amount of compensation. If the Commonwealth and the person do not agree on the amount of the compensation, the person may institute court proceedings for the recovery from the Commonwealth of such reasonable amount of compensation as the court determines. 14


 


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