GP practices file complaint with Commerce Commission over ‘unfair’ and ‘illegal’ contracts

He acknowledged that GP practice owners are “at the table” in negotiations, but have “very limited ability” to influence decisions.

“The contracts that were imposed on us without any effective participation are unfair. We believe they are illegal and violate the Fair Trading Act,” he said.

He said the state could compulsorily change contracts and that he believed GPs had “no power” to intervene or challenge decisions.

“We have asked the Commerce Commission to investigate the fairness of the contracts under which GPs operate, and we are seeking intervention from the Commerce Commission,” he told the Herald.

Chambers acknowledged the decision to lodge a formal complaint was drastic, but said it was ultimately about ensuring GPs were properly funded so they could reduce waiting times and make GP visits more affordable for patients.

GPs believe that proper investment in the sector would attract more GPs into the profession, reducing staff burnout and enabling patients to be seen earlier.

“GenPro filed the complaint on behalf of its members, but it affects the health care of all New Zealanders,” he said.

GP practices are funded based on the number of patients they have registered in a system called capitation.

In July, the government proposed a 4% increase in the amount paid to a practice per patient, which was widely criticised as inadequate and disappointing.

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General Practice New Zealand chairman Bryan Betty told the Herald he understood why there were frustrations with the system.

He said the government’s offer of 4% was “well below” expectations.

“The government can dictate the content of these contracts or the amount of the capitation increase. There was no room for negotiation on this point (the 4% offer),” he said.

“A mandatory change is introduced by mistake and the government says: ‘This is what we are giving you. That’s it.’

THE Herald has contacted Health New Zealand for comment, but the agency has not yet responded.

Further deaths are a ‘certain possibility’

Last week, the Herald Patients at a general practice and urgent care clinic in Ōtara queued from 6 a.m. in the cold in the hope of being seen by a GP.

Chambers said when people are waiting in line or struggling to get an appointment with their community doctor, it puts increased pressure on hospital emergency departments.

General practitioners are seen as the gateway to the health system and a functioning system ensures that health problems are detected early, debilitating illnesses are prevented and people are kept out of hospital.

Referring to the case of a patient who died after waiting three hours to be seen in Rotorua Hospital’s emergency department, Chambers said such a tragedy could happen again.

“We warned that this situation was possible and, unfortunately, it is happening.”

Health New Zealand said it was conducting a review of the incident.

Betty was also concerned about the possibility of further incidents due to the “iceberg of problems” that was accumulating and urged the government to act.

“What we know is that areas that are limited in terms of general practice or do not have sufficient capacity within the community sector are putting a disproportionate demand on emergency services.

“We’re seeing this happening all over the country at the moment and it’s a real concern. We need to address the issue of what’s happening in the community in general practice at this point,” he said.

Michael Morrah is a senior investigative journalist/team leader at the HeraldHe won the award for best coverage of a major news event at the 2024 Voyager NZ Media Awards and has twice been named Journalist of the Year. He has been a broadcast journalist for 20 years and joined the HeraldThe video team in July 2024.