EXPLANATORY STATEMENT
Health Insurance Amendment (Diagnostic Imaging Accreditation) Act 2007
Health Insurance (Diagnostic Imaging Accreditation – Designated Persons) Instrument 2010
Issued by the authority of the Minister for Health and Ageing
AUTHORITY
The instrument to which this explanatory statement relates is made under subitem 12A(12) of Schedule 1 to the Health Insurance Amendment (Diagnostic Imaging Accreditation) Act 2007 (the 2007 Act), as amended by the Health Insurance Amendment (Diagnostic Imaging Accreditation) Act 2010 (the 2010 Act).
The instrument is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
PURPOSE AND OPERATION
The purpose of the instrument is to designate and name the persons with whom certain notices are to be lodged for registration of diagnostic imaging premises and bases for mobile diagnostic imaging equipment (diagnostic imaging practices) for deemed accreditation.
The Health Insurance Act 1973 (the Act) provides a legislative framework for the introduction and operation of an accreditation scheme for practices providing diagnostic imaging services under medicare. Subsection 23DZZIAA(1) provides that the Minister may, by one or more legislative instruments, establish one or more schemes for the accreditation of diagnostic imaging practices.
Pursuant to subsection 16EA(1) of the Act, and unless the Minister otherwise directs, diagnostic imaging practices rendering diagnostic imaging services must be accredited for the service to be eligible for medicare benefits.
The scheme is being implemented in stages to ensure diagnostic imaging practices are accredited incrementally and have continued access to medicare benefits. The first stage of the scheme was established by the Minister under the Health Insurance (Diagnostic Imaging Accreditation) Determination 2008 (Stage I Scheme). It commenced on 1 July 2008 and covers all radiology services in the Diagnostic Imaging Services Table (DIST) of the Medicare Benefits Scheme (MBS). The Stage I Scheme does not cover cardiac ultrasound, cardiac angiography, obstetric and gynaecological ultrasound, and nuclear medicine imaging (non-radiology services). The Stage I Scheme will conclude on 30 June 2010.
The second stage of the Scheme (Stage II Scheme) will be established by a separate legislative instrument made under subsection 23DZZIAA(1) of the Act, the Health Insurance (Diagnostic Imaging Accreditation) Instrument 2010. From 1 July 2010, all diagnostic imaging practices (whether they provide radiology or non-radiology services) will need to be accredited for diagnostic imaging procedures in order to retain medicare eligibility.
The exception to the requirement to obtain accreditation under Stage II from I July 2010 will apply to those practices providing non-radiology services who obtain 'deemed accreditation' related to Stage II. Such practices will have until 30 June 2011 to obtain accreditation under Stage II. The process that provides 'deemed accreditation' is dealt in Item 12A of Schedule 1 to the 2007 Act (as amended by the 2010 Act). Diagnostic imaging practices falling within this category will be deemed to be accredited under the Stage II Scheme if the proprietor lodges a notice of registration for accreditation of their diagnostic imaging practice before 1 July 2010 (deemed accreditation). These proprietors will be required to lodge their notice with the person designated by the Minister under subitem 12A(12) of Schedule 1 to the 2010 Act (designated person). In order to retain medicare eligibility after 30 June 2011, proprietors with deemed accreditation are required to apply for and obtain accreditation under the Stage II Scheme before 1 July 2011.
This instrument specifies the designated persons with whom certain notices are to be lodged for deemed accreditation.
Consultation
Since the commencement of the Stage I Scheme on 1 July 2008, the Department of Health and Ageing (Department) has continued its consultative approach for developing ongoing accreditation arrangements for diagnostic imaging practices. Two consultation papers seeking feedback on proposals for implementing the Stage II Scheme were released for comment in early 2009. A consultant was also engaged to evaluate the impacts of the Stage I Scheme and to gather feedback on expectations for the future. Key findings from the research and feedback from submitters indicate broad support for including all diagnostic imaging services in the Stage II Scheme and the proposed arrangements for implementing the Stage II Scheme. Diagnostic imaging practices providing diagnostic imaging services will be advised of the new arrangements when the arrangements are approved.
Organisations were invited to apply for approval as a potential accreditor and designated person through an Invitation to Apply (ITA) process conducted by the Department in late October 2009. Applications received by the Department were assessed to identify preferred accreditors that were submitted to the Minister for her consideration.
Commencement
The instrument commences immediately after the commencement of Schedule 1 to the 2010 Act.
The 2010 Act will insert item 12A into the 2007 Act.