GP clinics axed after Symbion takeover

GP clinics axed after Symbion takeover
by Michael Woodhead
While the government talks up its $275 million plan to establish GP Super Clinics in underserviced areas, private medical centre owner Primary Health is being criticised for closing down six practices it has acquired in the recent takeover of Symbion Health.
In Melbourne three GP practices have been closed by Primary in the last month, with the local division decrying the “devastating impact” the closure have on the local community.
"Patients are having to wait two to three days for an urgent appointment and up to three weeks for general appointments,” said Dr Chris Pearce, president of the Melbourne East General Practice Network of the closure of the Gordon Crescent Medical Centre.
He rejected claims by Primary Health that the centres were unprofitable and could not recruit GPs.
“I absolutely refute the concept that small centres are no longer financially viable, in fact it is quite the reverse," Dr Pearce told the local newspaper (link)
Primary Health has also closed two other former Symbion medical centres at Box Hill and Ferntree Gully in Victoria, as well as others in Caboolture, Queensland and Hurstville and Wentworthville in NSW.
The company, which had 40 medical centres last year, acquired 50 more in its $1.2 billion takeover of Symbion earlier this year.
Dr Pearce backed the comments of local Labor MP Tony Robinson who said the closures would be a disaster for elderly and disabled patients who were unable to travel to neighbouring suburbs for medical treatment (link).
"When you get these situations where corporate bottom-lines take precedence over patient care, you get decisions that are made without the patients' best interests at heart," said Dr Chris Pearce.
"These decisions are taken at head office with no consideration of what a community needs."1 July 2008
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Practices that are 3 FTE doctor or less will not be viable in the future whether you are owned by a corporate or not. Crossing the T's and dotting the I's from a risk management view is getting harder and less economic in smaller practices. Practices should be at lease 6 FTE's to run sustainably. In Sydney some doctors are asking 70 to 73% of gross fees when practice overheads are 40%. The reason why they are closing down is there is no money left for re-investment into infrastructure and quality assurance. If you are corporate there is the added challenge you have a third mouth to feed the shareholder. You can only cut the pie in so many halves. Doctors need to be careful they don't bite the hand that feeds them or they could end up with their practice closing or a lawsuit due to poor infrastructure. If doctors can afford to work part time it means they are making an excellent living. It is important to strike a balance with your practice. Its in nobody's especially the patients interest to get it wrong.
Posted by David Dahm 1/07/2008 4:03:43 PM
Why is anyone surprised? Corporations are by law "obliged" to look after the interests of the shareholders, not its customers.
Medical care is not a commodity but a common social good, a social good that deserves all our responsible financial management. Government policy that doesn't protect the common good can only destroy an already fragile health system.
Over to you, Nicola.
Posted by JP Sturmberg 1/07/2008 4:25:50 PM
It reflects the single mindedness of the ideological pursuit of US
Capitalism's insistence that private enterprise is good in all areas
even the service industry notwithstanding that if you provide a
service you'll make an income but if you wish to make a profit you
have to cut services. What must have transpired was that there was no
profit, only services and income.
Posted by J. Zubevich 1/07/2008 7:59:08 PM
This should open the eyes of the govt.
Corporates should not be allowed to operate medical practice clinics.
Corporate run clinics defeat the purpose of good clinical practice. The practice of medicine is NOT only money making. Providing service to the community should be the priority.
Corporate-run clinics are not there for this except money. GPs should not work for such clinics. Why should corporates make money on the service you provide?
Posted by Vinod 2/07/2008 12:20:02 AM
This is the situation the government is pushing general practice to. We are totally disabled towards employing new doctors or replacing doctors. The situation reached is that practice ownership is a huge burden to keep carrying while we are unable to recruit doctors.

Primary has a practice model that they continue to expand, other models that do not fit in their category will be closed.

We wish that the government would look at the moderately large practices to receive support and maintain their services to the community.

Dr Maher Luka
Coburg Family Medical Centre
Posted by Dr Maher Luka 2/07/2008 12:21:56 AM