AHA conducted an independent and critical review of the PricewaterhouseCoopers (PwC) Medical Practice Cost Study, undertaken as a component of the Relative Value Study, in order to ascertain the robustness of PwC’s findings.

AHA review PwC’s methodology and findings and the associated assumptions and data.

PwC used a case study method involving construction of a ‘hypothetical practice’. Information sources included specialist and general practices visited, ABS data and and a number of prior studies.

The study investigated the relationship between the MBS remuneration paid to medical practitioners compared with the actual costs associated with running a medical practice. The purpose of this review was to determine whether the costing process adopted by PwC was both fair and equitable. This included reviewing such components as; costing principles, cost reimbursement philosophy, the concept of a reasonably efficient practice, government policy, costing systems and model validation.

Our final expert report also identified the strengths and weaknesses of the study and provided a schedule of potential adjustments.