Health funding row rolls on

The Temuka Family Practice's fight for subsidised fees continues after the release of a High Court decision.

The practice's 800 patients continue to pay nearly twice for doctor's visits what patients of other practices pay as the long-running funding battle with health agencies rolls on.

The legal battle began in 2007, after a South Canterbury District Health Board (SCDHB) decision not to give the practice a subsidy for patients aged 25 to 44, saying it did not comply with low-fee requirements.

The practice then took action against the SCDHB for breach of contract.

In a written decision just released, High Court Associate Judge Osbourne has ruled the contract was not legally enforceable with the SCDHB and instead was a contract with the Aoraki Primary Health Organisation (PHO), which the practice has also taken legal action against.

As a result of the decision, 800 enrolled patients aged 25 to 44 years are still paying $55 to visit the practice, instead of $19 to $35, as is the case at the rest of South Canterbury GPs.

Practice principal Bryan Moore said the Aoraki PHO was now seeking "relief" from the SCDHB.

"Basically, you have one government agency suing another government agency, while our patients continue to miss out on the subsidy," he said.

"We are the only practice in New Zealand not to qualify for the subsidy and two others choose not to take it.

"We changed our practice fee to comply, but the SCDHB argues it was at their discretion to decide we didn't. How can we comply when the DHB haven't told us why we didn't?"

The practice has more than 3000 patients on its books.

"We have gone to court to be told we are not contracted to the DHB, but we are contracted to the PHO," Dr Moore said.

"In my opinion that is an entirely cynical move which makes the PHO exposed for commercial liability, while the DHB makes the funding decisions."

SCDHB chief executive Chris Fleming made a limited comment.

"While the judge's report addressed one of the issues that the DHB sought a resolution on, there are still other issues before the court and as such it would not be appropriate for the district health board to comment at this stage."

Aoraki PHO chief executive Karen Foster would not comment yesterday due to the issue still being before the court.

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