IMO settles High Court fees dispute

A DOCTORS’ group has agreed to settle High Court proceedings with the Competition Authority over its alleged role in fees paid to GPs by insurance companies for patient medical reports.

As part of the settlement the Irish Medical Organisation (IMO) has agreed not to issue any communication or instruction to its members with regard to the setting of fees.

The legal action against the IMO followed a lengthy investigation by the Competition Authority into alleged price fixing. It was also alleged that the doctors’ body threatened to stop providing medical reports if the life assurance companies refused to pay a proposed increase in fees. However, the IMO insisted last night that the settlement did not constitute an admission that it was in breach of the Competition Act.

The Competition Authority began its investigation in February 2005, following a complaint received during a fees dispute between the IMO and life insurance companies.

In July 2006, the authority began a High Court action against the IMO. As part of the settlement terms, the organisation has agreed to pay the authority’s costs.

Director of the Monopolies Division of the Competition Authority Dr Stanley Wong said the settlement had much wider reaching implications than simply affecting the cost of medical reports to insurance companies.