Summary
Amendment to the Health Insurance Act 1973 regulations governing diagnostic imaging services (MRI, CT, ultrasound, X-ray, etc.) under Medicare. Sets the Medicare Benefits Schedule (MBS) items, rebate amounts, and quality standards for diagnostic imaging providers billing Medicare.
Reason
This instrument is part of the regulatory apparatus that controls diagnostic imaging prices through Medicare rebates, creating artificial price distortions that contribute to long public waiting lists and provider shortages. The MBS system rations diagnostic imaging based on government-set prices rather than market demand, leading to waiting times that harm patients. Compliance costs for providers participating in Medicare are substantial, reducing competition and innovation. Price controls on diagnostic imaging services, as with all price controls, distort supply and demand, resulting in shortages that are only masked by the government's role as the primary payer. The regulatory burden falls disproportionately on smaller imaging practices, reducing market competition. Australians would be better served by a system where diagnostic imaging pricing reflects market conditions and patients can access services based on demand rather than bureaucratic allocation.