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Thursday, 15 November 1973
Page: 3470


Dr KLUGMAN (PROSPECT, NEW SOUTH WALES) asked the Minister for Social Security, upon notice:

(1)   What proportion of doctors' incomes was derived from

(a)   Commonwealth and medical fund benefits;

(b)   pensioner medical service payments; and

(c)   Repatriation payments during each of the last 5 years.

(2)   How much of the remainder was estimated to derive from insurance companies.


Mr Hayden - The answer to the honourable member's question is as follows:

(1)   and (2) In reply to the honourable member's question, I table hereunder the information on doctors' gross and net incomes before tax, which was set out in revised Tables 1 and 2, and Table 2a, submitted by my Department to the Medical Fees Tribunal on 4 September 1973.

On the basis of the information contained in Table 2a, estimates of the proportion of doctors' gross incomes derived from

(a)   Commonwealth and medical fund benefits,

(b)   Pensioner Medical Service payments and

(c)   Repatriation payments have been calculated. These estimates are shown in Table 'X'. Information that would enable an estimate to be made of the proportion of doctors' incomes derived from insurance companies is not available.

I wish to advise the House that there were errors in Table 1 'Doctors' Incomes' which was included in my reply of 2 May 1973 to Question No. 488 by Dr Klugman. For 1967-68 the 'Percentage of actual to gross' shown in Table 1 of that reply should be 60.6 per cent instead of 62.3 per cent. For 1969-70, under the heading of 'Recorded Payments', the 'Subtotal' should be S206.3m (not $ 196.3m), and 'Others' $33.7m (not $43.7m).

 

(a)   Derived from 'Taxation Statistics- Supplement to the Report of the Commissioner of Taxation' for the appropriate years. Definitions used are the same as used by the Commissioner of Taxation.

(b)   1971-72 and 1972-73 figures projected using least squares linear regression on the following percentages calculated from figures shown in Taxation Statistics -

 

(c)   Derived from Total Cost of Matched Services' (Table 30 - Commonwealth Department of Health Annual Report 1971-72 to 1972-73 figure published in Table 70 of the 1st Annual Report of the Director-General, Department of Social Security) by the following adjustments -

(i)   Published figures for the year 1968-69 were reduced by $0.7 million to eliminate cost of services to members of contract organisations. Published figures for 1969-70 onwards did not include cost of services to members of contract organisations.

(ii)   The resulting figures were then further reduced to adjust for payments to public hospitals for pathology and radiology services by -

 

The 1972-73 adjustment was based on actual statistics extracted from fund claims; the 1966-67 adjustment was based on a sample survey for that year in New South Wales, Victoria, and South Australia. The figures for the other years were estimations based on projections of these figures.

(d)   Derived from Table 2a.

(e)   The Committee on Medical Schools projects a growth of doctor numbers from 17,243 in 1971 to 20,429 in 1976- equivalent to an annual rate of 3.45 per cent. Projection of doctors subject to provisional tax at this

Tate would result in numbers of 10,794 in 1971-72 and 11,166 in 1972-73. Figures used in this table are shown as a range around central estimates rounded up to the next one hundred. Comparisons with census years are:

 

 

 

(a)   These figures were derived from 'Total Cost of Matched Services' (Table 30- Commonwealth Department of Health Annual Report 1971-72 to 1972-73 figures published in Table 70 of the 1st Annual Report of the Director-General Department of Social Security) by the following adjustments -

(i)   Published figures for the years 1964-65 to 1968-69 payments were reduced by $0.7 million to eliminate cost of services to contract organisations. Published figures for 1969-70 onwards did not include cost of services to members of contract organisations.

(ii)   The resulting figures were then further reduced to adjust for payments to public hospitals for pathology and radiology services by:

 

The 1972-73 adjustment was based on actual statistics extracted from fund claims; the 1966-67 adjustment was based on a sample survey for that year in New South Wales, Victoria, and South Australia. The figures for the other years were estimations based on projections of these figures.

(b)   1971-72 and 1972-73 figures projected using least square linear regression on percentages calculated from figures shown in Taxation Statistics.

 







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