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Statement by the Physicians Association of South Africa on Discovery Health's payment arrangement

22 August 2007 Faculty of Consulting Physicians of South Africa

The Physicians Association of South Africa, which represents the country's leading specialist physicians, rejects attacks by a small group of medical practitioners on Discovery Health for its introduction of a Premier Rate for doctor remuneration.

Statements attacking the Discovery Premier Rate represent the views of a very small group of specialists in a small geographic area. The vast majority of members of the Physicians Associations are happy with the level of remuneration given under the Discovery premier rate.

The introduction of the Premier Rate by Discovery Health has been a welcome development since it provides certainty for patients and doctors alike. According to Council for Medical Schemes data, 83% of doctors charge at the National Health Reference Price List (NHRPL), so for most physicians, this means a higher level of remuneration than before.

There has been a need to develop a payment structure that is sustainable for consumers and doctors alike ever since the abolition of the medical aid rate by the Competition Commission a few years ago.

The NHRPL was also not a solution, with practice case studies showing it was between 52% and 87% below what was sustainable for doctors.

The Premier Rate introduced by Discovery Health is a means of bridging this gap. The Physicians Association realizes that it is not feasible to move overnight to a level of remuneration that suits members fully, but the Premier Rate is a step in the right direction. It is entirely voluntary, and doctors get paid directly at a rate higher than the NHRPL. In fact in many cases our members are earning more than they were before.

Furthermore we have been impressed with the way Discovery Health has conducted itself in its negotiations with the Physicians Association. Discovery Health deserves praise for going out of its way to work with doctors, including in helping establish governance programmes for specialists, to ensure best practice.

Dr Adri Kok, chairperson - Physicians Association.

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