Pathologists say they're being driven to the wall as the Turnbull government delays its solution to the rent wars between doctors and pathologist tenants.
Hastily announced during the election campaign in a bid to head off an escalating campaign against Medicare cuts, the government promised to address the issue of rising rents in co-share practices, where GPs act as the landlord for pathologists.
The government committed to alter the definition of market value for space in the GP clinics, effectively mandating rent control, to protect tenants.
That change was meant to come into effect in January next year, but earlier this month, the government announced it would be delaying the implementation to continue consultation.
But pathologists, who claim they are being used as a piggy bank to fill the gap between doctor's rising costs and the Medicare freeze, say they are running out of time, warning of a looming duopoly and rising costs.
For Wayne Smit, managing partner and general pathologist of Perth Pathology, it is already too late.
The West Australian provider said he was left with no choice but to sell his decade-old business to one of the bigger players, after rent went from 5 per cent of his costs to 20 per cent, with more increases on the horizon.
"I would have preferred to remain independent and viable but this was simply not possible. The collection-centre rents were deregulated in 2010 without consideration as to the longer-term implications for pathology provision," Dr Smit said.
"This situation needs a political and policy resolution to ensure proper patient provision, investment and viability for the sector going forward."
Perth Pathology is one of six private pathology companies that have sold out or closed in the past two years, and Pathology Australia CEO Liesel Wett believes more are on the horizon – with patients ultimately left bearing the brunt of increased costs – if a solution to the stand-off is not found soon.
"If this continues, we will end up with a duopoly, which would lead to increased prices and lower service standards," she said.
"If GPs are relying on rent from pathologists to be profitable, and this is sending pathology practices to the wall and out of business, then this is not sustainable."
AMA President Michael Gannon welcomed the chance for further consultation earlier this month, telling members that while the AMA supported "prohibited practices laws", medical practices also had the right to negotiate rents freely with pathology providers.
Last month, the Royal Australian College of General Practitioners president Frank Jones said GP and clinic owners were still facing their own cost pressures, with GP groups worries any mandated changes will cut revenue further, while doctors are struggling with the Medicare freeze.
It's left both groups looking to the government for answers.
Health Minister Sussan Ley said consultation would continue.
"While these consultations are ongoing, bulk-billing incentives for pathology and diagnostic imaging services would continue after 1 January 2017," a spokesman for the minister said.
