Controversy ignites over PwC involvement in Prostheses List reform

MedTech & Diagnostics News: At the Senate Community Affairs Committee proceedings, Labor Senator Deborah O’Neill expressed concerns regrading the involvement of PwC with the prostheses list (PL) reform.

Senator O’Neill referred to a letter received from Private Healthcare Australia (PHA) regarding the participation of PwC in the Department of Health’s work on the prostheses list reform. She also indicated that on the MTAA website there was a reference to the organisation receiving advice on transfer pricing from PwC. The PHA’s letter raised concerns about potential conflicts of interest due to PwC’s involvement in both tax management and transfer pricing for the MTAA.

Elizabeth Flynn, Assistant Secretary of Prostheses List Reform Taskforce delved into the relationship between the Independent Health and Aged Care Pricing Authority (IHACPA) and MTAA. It was clarified that the Pricing Authority worked closely with MTAA and engaged KPMG for data collection on public prices of medical devices, which aided their reference pricing exercise.

As the discussion progressed, Senator O’Neill questioned the quality and accuracy of the data collected by KPMG, highlighting the importance of an unbiased review. Penny Shakespeare, Deputy Secretary for Health Resourcing emphasised the Department’s reliance on the Pricing Authority’s advice, stating that the reforms to the prostheses list aimed to bridge the gap between private and public pricing for medical devices. The government’s strategy involved progressively reducing the gap over time while considering factors such as differences in health system structures between countries.

While acknowledging the complex nature of the issue, Professor Brendan Murphy AC, Secretary of the Department of Health, reiterated the commitment to decreasing prices, ensuring consumers have access to affordable medical devices without compromising quality. Ms Flynn added that the MTAA remained actively involved in discussions and provided input on medical device pricing.

The Department acknowledged the contract with PwC has concluded, however, they assured Senator O’Neill that they are examining all potential conflicts, including any concerns relating to the prostheses list reform.

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