Medtech charges dispute grinds on

Kiwis face higher GP fees after a major medical software provider increased charges for transferring patient information, health technology firm HealthLink says.

Chief executive Tom Bowden says the move by Australian firm Medtech Global - which supplies almost 90 per cent of New Zealand's 1200 general practices with medical record software - could cost the health sector $8 million a year, and HealthLink has complained to the Commerce Commission.

HealthLink integrates systems and networks so GPs and other health providers can exchange information.

The company had a deal to pay Medtech a flat fee of $15 a general practice per month for access to its software so it could provide an electronic referrals service, for which it charged GPs $50.

HealthLink had bid for an Auckland electronic referrals tender on the understanding the $15 fee still applied, but Medtech advised it would raise the fee to between $42 and $82 a month and charge extra for support services.

HealthLink calculates Medtech's new fees could cost the health sector between $4m and $8m a year.

"Will this increase GP fees? Absolutely. We would have no choice but to charge GPs."

Other Medtech customers are also filing complaints with the commission, he says.

New Zealand Medical Association GP council chairman Mark Peterson says GPs would pass increases on to patients.

GPs must pay for medical record software and network services themselves and had limited choice of providers.

"They have got a relatively captive market. We'd like to know more about the reasons for the cost increases. If we get better services and potentially better quality of information about our patients then we will pay the bill, but ultimately it will be patients paying for it."

If charges were too high, GPs could be forced to cut some services.

Mr Bowden says Medtech threatened to refuse HealthLink access to medical records for its electronic referrals service if HealthLink did not pay the fees - putting patient care at risk.

Medtech chairman Vino Ramayah says it made no such threat and the increased fees applied only to the Auckland tender as the technical requirements involved were more complex. Medtech would vary the fees it charged network providers.

"The statement that an increase in fees by Medtech will add between $4m and $8m in costs to the health sector is wrong. It's not a one-size fits all approach."

Mr Bowden says HealthLink has been quoted the increased fees for multiple regions and services such as electronic referrals are unlikely to differ in complexity as the same technical standards are used.

- © Fairfax NZ News