PROJECTS

Competition Effects of Physiotherapy Contracts, New Zealand

The problem

The Accident Compensation Corporation (ACC) of New Zealand, responsible for administering the country’s universal no-fault accidental injury insurance scheme, wanted to introduce an improved model for paying physiotherapists, which would, among other things, restrict them from charging any additional out-of-pocket fees to patients. Physiotherapists objected to this regime on the grounds that experienced physiotherapists would be paid the same fee as entry-level practitioners and alleged that the proposal would amount to price fixing. Physiotherapist objections meant that the ACC needed to seek clearance from the Commerce Commission, the New Zealand competition authority.

How we helped

Castalia reviewed the economic consequences of the proposed contractual arrangement. To do so we, defined the market and considered competition within this market. We concluded that the proposal to restrict physiotherapists who are being compensated by the insurance scheme from charging additional out-of-pocket fees did not amount to price fixing.

Impact

Using Castalia’s evidence, the ACC received Commerce Commission clearance for its proposal. The ACC now enters into service contracts with physiotherapists under the new regime.

Our team

Alex Sundakov

Alex Sundakov

Executive Director

Find out more

How can we help you?

How can we help you?

WASHINGTON, DC
+1 (202) 466-6790
1747 Pennsylvania Avenue NW, Suite 1200
United States of America

SYDNEY
+61 (2) 9231 6862
Suite 19.01, Level 19, 227 Elizabeth Street
Australia

AUCKLAND
+64 (4) 913 2800
74D France Street, Newton South
New Zealand

WELLINGTON
+64 (4) 913 2800
Level 2, 88 The Terrace
New Zealand

PARIS
+33 (1) 73 44 26 97
6 Rue Duret
France

BOGOTÁ
+57 (1) 508 5794
Calle 81 #11-08, Piso 5, Oficina 5-127
Colombia

Thinking for a better world.

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WASHINGTON, DC
+1 (202) 466-6790
1747 Pennsylvania Avenue NW, Suite 1200
United States of America

SYDNEY
+61 (2) 9231 6862
Suite 19.01, Level 19, 227 Elizabeth Street
Australia

AUCKLAND
+64 (4) 913 2800
74D France Street, Newton South
New Zealand

WELLINGTON
+64 (4) 913 2800
Level 2, 88 The Terrace
New Zealand

PARIS
+33 (1) 73 44 26 97
6 Rue Duret
France

BOGOTÁ
+57 (1) 508 5794
Calle 81 #11-08, Piso 5, Oficina 5-127
Colombia

Thinking for a better world.

Castalia-logo-negative-2col
PROJECTS          NEWS         CONTACT
© Copyright 2019 Castalia. All rights reserved.
Terms | Privacy | Credits | Sitemap