Why is There a Gap?

Patients undergoing medical treatment are required by the doctor to pay a gap. The gap fee can sometimes be quite large. In bariatric surgery a Gap fee is often charged.

Why is there a Fee?

The Fees have developed in Australia due to a number of factors. The cost of providing good medical care rises and continues to rise of course. The key factors that increase our costs are the same as any business. These include consumer price index, average weekly earnings of staff etc. In medical practices there is also the additional cost of indemnity protection etc. Unfortunately also the government's contribution to the costs is falling away.

The difference between the consumer price index increasing average weekly earnings and the costs of medical practices, compared to the Medicare fees as determined by Commonwealth Government is now very large. It is estimated by the AMA (Australian medical Association) that Medicare fees have only increased to meet only two thirds of the actual cost increases over the last 25 years.

In other words, if doctors were to not charge a gap free, it would be like taking a wage cut of around 30%. And yet, doctors are required to set their own fees and are independent. Naturally doctors therefore set their fees to meet their costs and maintain the standards of good medical care.

To put more simply there are gap fees charged because Medicare has not kept up with the cost of living for nearly 30 years.

The fees charged at Melbourne Bariatric Peninsula and are set at a level that enables us to look after you properly.

Source: Australian Medical Association, 2011