The ADA has been granted a draft continuation of an exemption from prosecution on price collusion by the Australian Competition and Consumer Commission (ACCC), which it has held for 15 years, which allows independent dentist businesses operating from the same location to collude on price.
Importantly, this determination only applies when at least one person in the arrangement is an ADA member; if joint discussion on pricing occurs, and no ADA member is involved, dentists risk prosecution for cartel conduct which carries heavy penalties including jailtime.
The official wording from the ACCC lays out exactly what is governed by this draft and later substantive 12-month authorisation (which will provide time for the ADA to apply for a full 10-year extension with wording that avoids impacting on payroll tax assessment):
“… the ACCC proposes to grant authorisation for 12 months to the ADA and its members to make and give effect to contracts, arrangements and understandings between 2 or more dentists and/or dental specialists as to the fees to be charged for dental services provided in a shared practice, where at least one party to the agreement is a member of the ADA.”
The granting of this draft determination, which protects members post expiration of the current arrangement (this finished on 18 April) while the 12-month application is considered, is a key member benefit for ADA members.
The 12-month authorisation determination is currently the subject of a process which includes public submissions which can be made until 28 April, with the final decision expected sometime in May/June.
