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Medicine and the State in Canada: The Extra-Billing Issue in Perspective

Published online by Cambridge University Press:  10 November 2009

Carolyn J. Tuohy
Affiliation:
University of Toronto

Abstract

The apparent defeat of the medical profession on the issue of extra-billing presents an anomaly, in light of the historical and comparative literature on the political power of medicine and the more general interest group literature regarding the disproportionate political influence of concentrated interests. On closer examination, the extra-billing episode suggests some modifications to theories of the political advantage of concentrated interests, but does not present a deviant case. It rather provides an example of the political vulnerability of concentrated interests on issues of broad symbolic appeal; it illustrates the ability of a concentrated group to use its traditional advantages in processes of negotiation and accommodation with policy-makers to achieve tangible and positional gains in compensation for symbolic losses; and (in the case of the conflict in Ontario) it demonstrates the susceptibility of such negotiations over symbolic values to problems of misperception, miscalculation and “face.” In longer-term perspective, moreover, the extra-billing issue is best understood as an episode of conflict in a long history of accommodation between medicine and the state under comprehensive medicare.

Résumé

La défaite apparente de la profession médicale sur la question de la surfacturation présente une anomalie, en lumière de la littérature historique et comparative au sujet du pouvoir de la profession médicale, et de la littérature plus générale concernant l'influence politique disproportionnée des intérêts concentrés. Si on l'examine plus rigoureusement, l'épisode de la surfacturation suggeère des modifications aux théories concernant l'avantage politique d'intérêts concentrés, mais il ne se présente pas comme une exception. Il fournit plutôt un exemple de la vulnérabilité politique des intérêts concentrés sur des questions qui ont un immense pouvoir symbolique; il illustra la capacité d'un groupe organisé d'utiliser ses avantages traditionnels dans les processus de la négotiation et de l'entente avec ceux qui élaborent les politiques pour obtenir des gains tangibles et « tactiques » en compensation des pertes symboliques; et (dans le cas du conflit en Ontario) il démontre la sensibilité de ces négotiations concernant les valeurs symboliques d'erreurs de perception et de calcul et de problemes d'image. À plus long terme, on comprend mieux la question de la surfacturation comme un épisode de conflit dans un long processus d'entente entre la profession médicale et l'État dans un contexte où l'assurance-maladie est généralisée.

Type
Research Article
Copyright
Copyright © Canadian Political Science Association (l'Association canadienne de science politique) and/et la Société québécoise de science politique 1988

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References

1 Strikes occurred in Winnipeg in 1933–1934, in Saskatchewan in 1962, and in Quebec in 1970; limited job actions have also been undertaken at various times in different provinces during the negotiation of fee schedules. Only in the case of the strike of Quebec specialists over the introduction of medicare in that province in 1970 did the profession not gain significant concessions as a result—and the failure to do so in that case is arguably attributable to an exogenous factor, namely the political crisis surrounding the kidnappings of public officials by the Front de libération du Québec. See Naylor, C. David, Private Practice, Public Payment: Canadian Medicine and the Politics of Health Insurance, 1911–1966 (Montreal: McGill-Queen's University Press, 1986), 252–53;Google Scholar and Taylor, Malcolm G., Health Insurance and Canadian Public Policy (Montreal: McGill-Queen's University Press, 1978), chaps. 5, 7Google Scholar.

2 As described below, the dollar amount of extra-billing was estimated at the equivalent of 1.3 percent of total physician billings under medicare on a nation-wide basis; in no province did it exceed 3 per cent. Extra-billing physicians did tend to “cluster” in particular localities and specialties, but their billings were diffused in those areas across consumers who had no established countervailing group mechanism. It might also be argued that the costs of extra-billing came to be “concentrated” in provincial government budgets through the federal penalties imposed under the Canada Health Act (also discussed below)—but this was an artifact of policy part-way through the policy process, and in any event these penalties amounted to less than 1 per cent of provincial health budgets.

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31 Only a minority, for example, would support private for-profit management of hospitals, or a return to voluntary and commercial control of the health sector. See Stevenson, Vayda and Williams, “Medical Politics After the Canada Health Act,” 12.

32 This strategic minority is composed largely, though not exclusively, of academically-based physicians (Tuohy, “Smoke and Mirrors,” 190–95). The linkages between the medical schools and the regulatory colleges are both functional (deriving from a common interest in entry standards to the profession) and structural (deriving from the representation of medical schools on the governing councils of the colleges).

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51 Unless one assumes that the threat of an increase in extra-billing constituted a bargaining chip in the negotiation of the fee schedule under the governmental insurance plans. But one could on the contrary assume that the “safety valve” of extra-billing released pressure for fee schedule increases and held fee schedules down.

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59 Successive Progressive Conservative ministers of health used various rationales to defend the option to extra-bill. In 1979, Dennis Timbrell maintained that accessibility and universality were being maintained without having to “in effect put the doctors on the payroll...of the government and drive them out of Ontario” (Hansard, Official Report of Debates, Legislative Assembly of Ontario, December 19, 1979, 5740–41)Google Scholar. Larry Grossman in 1983 defended extra-billing on the grounds that, unlike the flat fee schedule, it can reward experience and expertise (Debates, April 18, 1983, 68). Keith Norton, in 1984, took a more “corporatist” approach, referring to the option to extra-bill as a “social contract” with the profession which could not be abruptly changed, and pointed to a 98 per cent success rate for the OM A in resolving individual “inequitable” cases of extra-billing (Debates, October 15, 1984, 3204).

60 Quoted in Joan Price Boase, “Public Policy and the Regulation of the Health Disciplines,” doctoral dissertation, York University, Toronto, Ontario, 1986, 180.

61 Reported in “Scott asks MD's to help with ban on extra-billing,” Globe and Mail, August 20, 1985.

62 Michael Adams, Donna Dasko and James Matsui, “49 per cent of decided voters back Peterson's Liberals,” Globe and Mail, June 27, 1986.

63 The OMA leadership, cognizant of the ongoing tension between general practitioners and specialists (and among specialists) over the distribution of fee schedule increases, was also wary of the internal tensions which would be generated in an attempt to distribute funds on the basis of “excellence” or other such measures. In this regard, it apparently read its members’ views well. A subsequent survey indicated that a majority of a sample of Ontario physicians opposed such a fund. See Stevenson, , Vayda, and Williams, , “Medical Politics After the Canada Health Act,” 1516Google Scholar.

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70 The OMA executive also chose to join with the Canadian Medical Association in challenging the Canada Health Act and the Ontario legislation before the courts. For a discussion of these challenges, see R. Deber and S. Heiber, “Freedom, Equality and the Charter of Rights: Policy and Legal Aspects of Regulating Physician Reimbursement,” paper delivered at the annual meeting of the Canadian Political Science Association, Hamilton, 1987.

71 Calculated from data provided in Ontario Health Insurance Plan, Practitioner Care Statistics, 1985–86 (Toronto: Ministry of Health, 1986)Google Scholar and Ontario Health Insurance Plan, Practitioner Care Statistics, 1986–87 (Toronto: Ministry of Health, 1987)Google Scholar. Projected billings for June and July 1986 were estimated using June and July 1985 billings, adjusted for a 4 per cent fee schedule increase in January 1986, a 3 per cent fee increase in April 1986, a 4.75 per cent increase in the number of billing physicians, and assuming a 2 per cent “utilization” increase.

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