Taxpayers foot too big a bill for pathology tests, report claims

Pathology tests and scans billed under Medicare are costing taxpayers too much, a new report has claimed.

Blood tests, pap smears and scans are reportedly being conducted under an inefficient system, The Grattan Institute’s health program director Stephen Duckett said.

In ‘Blood Money’, an analysis of how the government pays and reimburses for scans, Mr Duckett said 75 percent of the funds went to just two companies on the Australian stock exchange.

Mr Duckett suggested the government should go directly to pathology providers and put contracts out to tender, to facilitate price competition.

“This is the most cost effective for the taxpayer,” he said.

“The government still pays for tests in the same way it did 40 years ago”.

Mr Duckett claims changes to the system could save up to $175 million per year.