Summary
Sets the Medicare benefits schedule for diagnostic imaging services (X-rays, CT, MRI, ultrasound, nuclear medicine), establishing item numbers, descriptions, and rebateable fees under the Health Insurance Act 1973. The 1991 table has been periodically updated and recompiled, with the 2009 version consolidating these arrangements.
Reason
This regulation implements centralized price-fixing for diagnostic imaging services, distorting market signals that would otherwise allocate healthcare resources efficiently. Price controls on diagnostic imaging: (1) reduce incentives for providers to offer services in lower-demand areas, harming rural and remote patients; (2) create artificial scarcity by holding prices below market-clearing levels, increasing wait times; (3) suppress innovation by capping returns on technological investment; (4) generate extensive compliance administration for what should be negotiated between providers and insurers; (5) the '1991' table origin reflects historically controlled pricing that should have been liberalized rather than recompiled. Healthcare cost inflation is partly driven by regulatory price supports that insulate providers from competitive pressure. Australians would be better served by allowing market-based pricing for diagnostic imaging, with income-contingent subsidies for access rather than price controls that distort the entire market.