delete Health Insurance (Diagnostic Imaging Services Table) Regulation 2012
The Health Insurance (Diagnostic Imaging Services Table) Regulation 2012 (F2012L02093) established the Medicare Benefits Schedule (MBS) fee structure and service definitions for diagnostic imaging services including ultrasound, CT, MRI, nuclear imaging, and mammography. It set out: eligible services and their fees; who may provide diagnostic imaging services; equipment requirements (particularly for MRI); bulk billing incentives; report and referral requirements; and multiple service restrictions. The regulation was administered by the Department of Health under the Health Insurance Act 1973 and was in force from October to December 2012 before being superseded.
This regulation exemplified government price-fixing in healthcare that Friedman and Mises identified as creating systemic distortions. By setting fixed fees for diagnostic imaging through the MBS schedule, it suppressed market signals that would naturally allocate resources efficiently. The extensive compliance requirements (report rules, referral forms, clinical indications, equipment mandates) added billions in compliance costs while the restriction on who may provide services created unnecessary barriers to entry. Its repeal in December 2012 after only weeks demonstrates even within the regulatory system it was recognized as problematic. While access subsidies may be warranted, tying them to government-determined price controls and prescriptive operating rules distorts the healthcare market, reduces supplier diversity, and creates unintended consequences like service rationing and wait times that could be better addressed through direct subsidies or consumer-directed mechanisms.