ACCC proposes to allow dentists in shared practices to agree on fees

The Australian Competition and Consumer Commission proposes to allow dental practitioners who operate in shared practices to reach agreements on the fees they charge their patients, where at least one party to the agreement is a member of the Australian Dental Association Inc. The ADA sought authorisation because dentists operating as separate legal entities may be at risk of engaging in price fixing and exclusionary conduct if they agree on fees they charge for treatments within the shared practice.

“The authorised arrangements are similar to the authorisations previously granted to Australian Dental Association members, which will lapse at the end of February 2013,” ACCC Deputy Chair Michael Schaper said. “The ACCC considers that allowing dentists who operate in shared practices to charge a common fee is likely to result in public benefits as it is likely to encourage more dentists to operate within a shared practice structure. The benefits from an increase in the incidence of shared practices include greater availability, continuity and quality of care, and improved efficiency in the provision of dental services.”

The ACCC is proposing to grant authorisation for a period of 10 years. The ACCC has also decided to grant interim authorisation from 1 March 2013 until the ACCC’s final determination comes into effect, or until the ACCC decides to revoke interim authorisation.

The authorisation does not apply to the setting of fees between dental practitioners who are not co-located.

Authorisation provides statutory protection for conduct that might otherwise raise concerns under the competition provisions of the Competition and Consumer Act 2010. The ACCC may grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment.

The ACCC is now seeking submissions on the draft determination.