ACC moves to curtail rise in physiotherapy costs

New media release
For immediate release 17 August 2009

ACC moves to curtail rise in physiotherapy costs

ACC has moved to contain the rising cost of physiotherapy while ensuring clients receive the treatment they need to achieve positive outcomes following injury.

From 16 November 2009 ACC will limit the growing funding of physiotherapy by paying approximately one third less to physiotherapists for consultations for ACC clients. Physiotherapists will, however, be able to charge ACC clients a co-payment towards their consultation fees.

“We have changed our approach to funding to ensure best value for levy payers while ensuring ACC clients get the right treatment at the right time,” said Gail Kettle, Director, Health Purchasing and Provider Relationships.

“There was a 214% increase in costs between 2000 and 2008. The cost of physiotherapy in 1999/2000 was $39.7 million. In 2008/09 alone, physiotherapy cost levy payers $144 million and, without change, this is forecast to increase to $232 million by 2013/14.

“Rises in costs of this nature are unsustainable for levy payers and the ACC scheme. And they don’t belong in a value-for-money environment.

“There was also a 60.2% increase in treatment volumes between 2000 and 2008. Since 2004, with the introduction of free physiotherapy through the Endorsed Provider Network (EPN) the volume of claims rose 45.5%.”

Since the introduction of free physiotherapy there has been a disproportionate use of physiotherapy in higher socio-economic groups. ACC will monitor access to see if there is an adverse impact on any specific groups, and will consider how to address these issues if they arise.

“We are also concerned that free physiotherapy has not led to more rapid recovery for clients who are injured. We are very clear that where we fund physiotherapy, we want to see measurable client benefits”, said Ms Kettle.

ENDS

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