Ann: Private equity discussions cease , page-15

jnash dont be misled by the waiting room crowds
those ophthalmologists that have packed waiting rooms crammed with unhappy patients waiting over an hour for their appointments are typicaly the ones that attract a lower socioeconomic mix and consequently have lower fees and a much much higher rate of billing at medicare rebate rates and using private health fund gap cover schemes

consider that the new medicare ruling will slash over $300 off the rebate payable by both medicare and consequently by the health funds - this will mean that ophthalmologist earnings from gap cover surgical patients will take a large hit .. charging full rate for a lot of patients (this applies in my informed opinon to between 25% to 80% of patients depending upon the socioeconomic mix of the clientele) at a rough estimate I would say at least 25% of patients) is

if u have private cataract surgery performed in the western suburbs of sydney you are highly likely to be charged gap cover rates meaning you have no outof pocket costs apart from your fund excess. After 1st november the ophthalmologists will either have to continue operating at gap cover rates with a consequent reduction of income of approx $900 per cataract operation (because the gap cover schemes pay an additional sum above medicare rates) or you will be billed full rate and be out of pocket by approx $900-$1500 depending who u see - either way the ophthalmologist either earns a lot less due to reduced surgical fees per case or else they earn a lot less because a significant proportion of patients cannot/will not pay $900-$1500.

If you see an ophthalmologist in sydneys north shore you will expect to have an out of pocket cost of between $300-1500 at present - this will increase by $300 from 1st nov

if you have macular degeneration you currently get 80% of out of pocket treatment fees for lucents rebated via the medicare safety net saving poitentially over $7000 out of pocket costs per year - this will be slashed according to the medicare ruling effective from next year and you will be at least $5000 oer year worse off - do you seriously think that all those little old ladies on pensions are not going to think twice about going public then?


all of this adds up to reduced income - there is ZERO prospect of growth in this area