Contents
1. Name of Determination. 3
2. Commencement 3
3. Interpretation. 3
4. Treatment of certain diagnostic imaging services. 7
5. Items in the DIST Regulations. 7
6. NK items. 7
7. References in Regulations. 12
8. Reconsideration of decisions. 14
9. Delegation. 14
SCHEDULE 1 – Specified health services. 15
SCHEDULE 2 – References in regulations. 85
This Determination is the Health Insurance (Diagnostic Imaging Capital Sensitivity) Determination 2011.
This Determination commences on 1 July 2011.
Definitions
(1) In this Determination, unless the contrary intention appears:
Act means the Health Insurance Act 1973.
ASGC means the Australian Standard Geographical Classification, July 2010, published by the Australian Bureau of Statistics.
DIST Regulations means the Health Insurance (Diagnostic Imaging Services Table) Regulations 2010.
DIST service means a service to which an item in the DIST Regulations relates.
maximum extended life age has the meaning given in subsection (5).
new effective life age has the meaning given in subsection (4).
relevant proprietor, for diagnostic imaging equipment, means:
(a) if the diagnostic imaging equipment is ordinarily located at diagnostic imaging premises, the proprietor of the diagnostic imaging premises; or
(b) if the diagnostic imaging equipment is ordinarily located at a base for mobile diagnostic imaging equipment when not in use and is not ordinarily located at diagnostic imaging premises, the proprietor of the base for mobile diagnostic imaging equipment.
relevant service means a health service, as defined in subsection 3C(8) of the Act, that is specified in Schedule 1.
Rural, Remote and Metropolitan Areas Classification has the meaning given by the general medical services table.
Schedule means a Schedule to this Determination.
Note Unless the contrary intention appears, expressions used in this Determination have the same meanings as in the Act—see section 13 of the Legislative Instruments Act 2003.
References to legislation
(2) Unless the contrary intention appears, in this Determination a reference to a provision of the Act or regulations made under the Act or the National Health Act 1953 or regulations made under the National Health Act 1953 as applied, adopted or incorporated in relation to specifying a matter is a reference to those provisions as in force from time to time and any other reference to provisions of an Act or regulations is a reference to those provisions as in force from time to time.
Age of equipment
(3) The date from which the age of equipment is worked out for this Determination is:
(a) the date that the equipment was first installed in Australia; or
(b) if the equipment was imported as used equipment — the date of manufacture of the oldest component of the equipment.
(4) The new effective life age for diagnostic imaging equipment is the period set out in the following table for that type of diagnostic imaging equipment:
| Modality | New effective life age |
| Ultrasound diagnostic imaging equipment used to perform a service to which an item in Group I1 in Division 2.1 in Schedule 1 applies | 10 years |
| Mammography diagnostic imaging equipment used to perform a service to which an item in Subgroup 10 of Group I3 in Division 2.3 in Schedule 1 applies | 10 years |
| Rest of diagnostic radiology diagnostic imaging equipment used to perform a service to which an item in Subgroups 1 to 9, 11, 12, 14, 15 or 17 of Group I3 in Division 2.3 in Schedule 1 applies | 15 years |
| Nuclear medicine (excluding PET) diagnostic imaging equipment used to perform a service to which an item in Group I4 in Division 2.4 in Schedule 1 applies | 10 years |
| MRI diagnostic imaging equipment used to perform a service to which an item in Group I5 in Division 2.5 in Schedule 1 applies | 10 years |
(5) The maximum extended life age for diagnostic imaging equipment is the period set out in the following table for that type of diagnostic imaging equipment:
| Modality | Maximum extended life age |
| Ultrasound diagnostic imaging equipment used to perform a service to which an item in Group I1 in Division 2.1 in Schedule 1 applies | 15 years |
| Mammography diagnostic imaging equipment used to perform a service to which an item in Subgroup 10 of Group I3 in Division 2.3 in Schedule 1 applies | 15 years |
| Rest of diagnostic radiology diagnostic imaging equipment used to perform a service to which an item in Subgroups 1 to 9, 11, 12, 14, 15 or 17 of Group I3 in Division 2.3 in Schedule 1 applies | 20 years |
| Nuclear medicine (excluding PET) diagnostic imaging equipment used to perform a service to which an item in Group I4 in Division 2.4 in Schedule 1 applies | 15 years |
| MRI diagnostic imaging equipment used to perform a service to which an item in Group I5 in Division 2.5 in Schedule 1 applies | 15 years |
Upgrades
(6) For this Determination, diagnostic imaging equipment has been upgraded if:
(a) an additional reasonable investment has been made within the new effective life age for the diagnostic imaging equipment that improves the overall performance of the imaging system so that it is equivalent to new diagnostic imaging equipment supplied in Australia at the time of the improvement; or
(b) the diagnostic imaging equipment is currently accredited under The Royal Australian and New Zealand College of Radiologists' Mammography Quality Assurance Program.
Note Proprietors can obtain further information on what constitutes an upgrade from the Department's website: www.health.gov.au/capitalsensitivity
A relevant service shall in the circumstances specified in this Determination be treated for the purposes of the provisions of the Act and of regulations made under the Act and the provisions of the National Health Act 1953 and of regulations made under the National Health Act 1953 that make provision in respect of professional services or medical services as if:
(a) it was both a professional service and a medical service; and
(b) there was an item in the diagnostic imaging services table that:
(i) related to the relevant service; and
(ii) specified in respect of the relevant service a fee in relation to a State, being the fee specified in Schedule 1 in relation to the State specified.
This Determination does not apply to a relevant service if a medicare benefit was paid in respect of a DIST service (other than item 63491, 63494, 63497, 64990 or 64991) rendered using the same diagnostic imaging procedure.
Application of NK items
(1) Despite clause 1.2.4 of Schedule 1 to the DIST Regulations, subject to subsections (2) to (12), an item in Schedule 1 that includes the symbol (NK) at the end of the item applies where:
(a) the age of the diagnostic imaging equipment used to perform the service exceeds the new effective life age for the diagnostic imaging equipment and the diagnostic imaging equipment has not been upgraded; or
(b) the age of upgraded diagnostic imaging equipment used to perform the service exceeds the maximum extended life age for the diagnostic imaging equipment.
Exemption – notice period and replacement by 30 September 2011
(2) An item in Schedule 1 that includes the symbol (NK) at the end of the item does not apply where:
(a) the service is performed before 1 October 2011; and
(b) the relevant proprietor for the diagnostic imaging equipment used to perform the service intends to replace the diagnostic imaging equipment by 30 September 2011.
Exemption – intention to replace equipment
(3) An item in Schedule 1 that includes the symbol (NK) at the end of the item does not apply where:
(a) the Secretary has granted an extension under subsection (4) in respect of the diagnostic imaging equipment used to provide the service; and
(b) the service is performed before the end of the extension period.
(4) The Secretary may grant an extension in writing specifying the end of the extension period in respect of diagnostic imaging equipment where the relevant proprietor applies in writing to the Department by 29 July 2011 providing documentary evidence to satisfy the Secretary that the relevant proprietor will replace the diagnostic imaging equipment but is unable to do so by 30 September 2011.
Exemption – outer regional, remote and very remote areas
(5) An item in Schedule 1 that includes the symbol (NK) at the end of the item does not apply where:
(a) the diagnostic imaging equipment used to perform the service is ordinarily located at diagnostic imaging premises; and
(b) the diagnostic imaging premises are located in any of the following Remoteness Areas as defined in the ASGC:
(i) Outer Regional Australia (Remoteness Area 2);
(ii) Remote Australia (Remoteness Area 3);
(iii) Very Remote Australia (Remoteness Area 4).
Note Proprietors can identify what Remoteness Area they fall under at the Department's DoctorConnect website: www.doctorconnect.gov.au Proprietors should refer to the category names, rather than category numbers as the website uses different category numbers from those specified in this Determination.
(6) An item in Schedule 1 that includes the symbol (NK) at the end of the item does not apply where:
(a) the diagnostic imaging equipment used to perform the service is ordinarily located at a base for mobile diagnostic imaging equipment when not in use;
(b) the diagnostic imaging equipment used to perform the service is not ordinarily located at diagnostic imaging premises; and
(c) the base for mobile diagnostic imaging equipment is located in any of the following Remoteness Areas as defined in the ASGC:
(i) Outer Regional Australia (Remoteness Area 2);
(ii) Remote Australia (Remoteness Area 3);
(iii) Very Remote Australia (Remoteness Area 4).
Note Proprietors can identify what Remoteness Area they fall under at the Department's DoctorConnect website: www.doctorconnect.gov.au Proprietors should refer to the category names, rather than category numbers as the website uses different category numbers from those specified in this Determination.
Exemption – inner regional areas
(7) An item in Schedule 1 that includes the symbol (NK) at the end of the item does not apply where the Secretary has granted an exemption in respect of the diagnostic imaging equipment used to perform the service under subsection (8).
(8) The Secretary may grant an exemption in writing in respect of diagnostic imaging equipment where all of the following requirements are met:
(a) the relevant proprietor applies in writing to the Department by 29 July 2011;
(b) either:
(i) all of the following apply:
(A) the diagnostic imaging equipment is ordinarily located at diagnostic imaging premises;
(B) the diagnostic imaging premises are located in Inner Regional Australia (Remoteness Area 1) as defined in the ASGC; and
(C) the diagnostic imaging premises are located in an area classified as RRMA 4 or 5 (small rural centres and other rural areas) under the Rural, Remote and Metropolitan Areas Classification; or
(ii) all of the following apply:
(A) the diagnostic imaging equipment is ordinarily located at a base for mobile diagnostic imaging equipment when not in use;
(B) the diagnostic imaging equipment is not ordinarily located at diagnostic imaging premises;
(C) the base for mobile diagnostic imaging equipment is located in Inner Regional Australia (Remoteness Area 1) as defined in the ASGC; and
(D) the base for mobile diagnostic imaging equipment is located in an area classified as RRMA 4 or 5 (small rural centres and other rural areas) under the Rural, Remote and Metropolitan Areas Classification;
(c) the Secretary is satisfied that the diagnostic imaging equipment is operated on a sporadic or rare basis and provides crucial patient access to diagnostic imaging services;
(d) the age of the diagnostic imaging equipment exceeds the maximum extended life age for the diagnostic imaging equipment by less than three years; and
(e) the relevant proprietor provides documentary evidence to satisfy the Secretary that the diagnostic imaging equipment has been well maintained over its working life.
Exemptions – during application processes
(9) If a proprietor applies for an extension under subsection (4) or an exemption under subsection (8), the Secretary must notify the proprietor of his or her decision.
(10) An item in Schedule 1 that includes the symbol (NK) at the end of the item does not apply where:
(a) the service is performed before 29 July 2011; and
(b) the relevant proprietor for the diagnostic imaging equipment used to perform the service intends to apply for an extension under subsection (4) or an exemption under subsection (8).
(11) An item in Schedule 1 that includes the symbol (NK) at the end of the item does not apply where:
(a) the relevant proprietor for the diagnostic imaging equipment used to perform the service has applied for an extension under subsection (4) or an exemption under subsection (8); and
(b) the Secretary has not yet notified the proprietor of his or her decision under subsection (9).
(12) An item in Schedule 1 that includes the symbol (NK) at the end of the item does not apply where:
(a) the relevant proprietor for the diagnostic imaging equipment used to perform the service has applied for an extension under subsection (4) or an exemption under subsection (8);
(b) the Secretary has notified the proprietor that he or she has refused to grant the extension or exemption; and
(c) either:
(i) if the proprietor has not yet applied for reconsideration under section 8, the period to apply for reconsideration has not yet expired; or
(ii) if the proprietor has applied for reconsideration under section 8, the Secretary has not yet notified the proprietor of his or her reconsideration decision.
(1) Each provision of the regulations or any instrument made under or given pursuant to the Act which refers to a Division, Subdivision, Group or Subgroup in the diagnostic imaging services table shall have effect as if the reference to the Division, Subdivision, Group or Subgroup also specified the items in the corresponding Division, Subdivision, Group or Subgroup in Schedule 1, or the relevant services to which those items are related by virtue of paragraph 4(b), as the case requires.
Note Paragraph 3C(1)(b) of the Act allows the Minister to determine that provisions of the regulations or instruments made under the Act which specify a professional service, medical service or item have effect as if they also specified a health service or item created by this Determination. Under subsection 7(1), a reference in regulations or an instrument to a Division, Subdivision, Group or Subgroup of the diagnostic imaging services table will be taken to include a reference to the items in the corresponding Division, Subdivision, Group or Subgroup in Schedule 1.
(2) For the avoidance of doubt, a reference in Schedule 1 to a Group or Subgroup has effect as if it also referred to the corresponding Group or Subgroup in the diagnostic imaging services table.
Note Subsection 7(2) is an interpretation provision which complements subsection 7(1).
(3) Each of the provisions of Schedule 1 to the DIST Regulations in column 1 of the table in item 1 of Schedule 2 shall have effect as if the corresponding existing item reference in column 2 of the table in item 1 of Schedule 2 also specified the corresponding additional item reference in column 3 of the table in item 1 of Schedule 2, or the relevant service to which that item is related by virtue of paragraph 4(b), as the case requires.
(4) Each of the items in Schedule 1 to the DIST Regulations in column 1 of the table in item 2 of Schedule 2 shall have effect as if the corresponding existing item reference in column 2 of the table in item 2 of Schedule 2 also specified the corresponding additional item reference in column 3 of the table in item 2 of Schedule 2, or the relevant service to which that item is related by virtue of paragraph 4(b), as the case requires.
(5) Each of the definitions in the Dictionary in the DIST Regulations in column 1 of the table in item 3 of Schedule 2 shall have effect as if the corresponding existing item reference in column 2 of the table in item 3 of Schedule 2 also specified the corresponding additional item reference in column 3 of the table in item 3 of Schedule 2, or the relevant service to which that item is related by virtue of paragraph 4(b), as the case requires.
(6) Each of the provisions of the Health Insurance Regulations 1975 in column 1 of the table in item 4 of Schedule 2 shall have effect as if the corresponding existing item reference in column 2 of the table in item 4 of Schedule 2 also specified the corresponding additional item reference in column 3 of the table in item 4 of Schedule 2, or the relevant service to which that item is related by virtue of paragraph 4(b), as the case requires.
(7) Each of the provisions of Schedule 1 to the Health Insurance (General Medical Services Table) Regulations 2010 in column 1 of the table in item 5 of Schedule 2 shall have effect as if the corresponding existing item reference in column 2 of the table in item 5 of Schedule 2 also specified the corresponding additional item reference in column 3 of the table item 5 of Schedule 2, or the relevant service to which that item is related by virtue of paragraph 4(b), as the case requires.
Note Paragraph 3C(1)(b) of the Act allows the Minister to determine that provisions of regulations which specify an item have effect as if they also specified an item created by this Determination. Subsections 7(3) to (7) and the tables in Schedule 2 provide that provisions of the DIST Regulations, Health Insurance Regulations 1975 and Health Insurance (General Medical Services Table) Regulations 2010 which specify items have effect as if they also specified the relevant NK items created by Schedule 1.
(1) If a delegate of the Secretary:
(a) refuses to grant an extension under subsection 6(4); or
(b) refuses to grant an exemption under subsection 6(8),
the proprietor who applied for the extension or exemption may apply to the Secretary for reconsideration of the decision within 28 days after the date of issue of the notice of the decision to the proprietor (or, if the Secretary is satisfied that special circumstances exist, within such further period (if any) as the Secretary allows).
(2) In the application, the proprietor:
(a) must identify the decision for reconsideration and set out the reasons for the application; and
(b) may provide new material for the Secretary to consider.
(3) The Secretary must, within 28 days after receipt of an application, reconsider the decision and:
(a) affirm the decision;
(b) vary the decision; or
(c) set aside the decision and make a decision in substitution for it.
(4) The Secretary must notify the proprietor of a reconsideration decision under subsection (3).
(1) The Secretary may, either generally or as otherwise provided by the instrument of delegation, by writing signed by him or her, delegate to an officer of the Department any of his or her powers under this Determination, other than this power of delegation.
(2) A power so delegated, when exercised by the delegate, shall, for the purposes of this Determination, be deemed to have been exercised by the Secretary.
(3) A delegation under this section does not prevent the exercise of a power by the Secretary.