A significant number of bariatric surgeons in Australia are weighing the future of their medical practices amid surging indemnity insurance premiums and a rising incidence of legal claims.
These developments coincide with a federal government policy that will require specialists to disclose their fees publicly, amplifying concerns about financial viability and compliance.
A joint survey conducted by the University of Notre Dame Australia, Flinders University, and the Australian and New Zealand Metabolic and Obesity Surgery Society (ANZMOSS) has revealed that 37% of bariatric surgeons are considering exiting the field.
One of the primary concerns is the cost of maintaining professional indemnity cover, which has increased by 35% in the past 12 months. The survey noted average premiums nearing $70,000 annually, with some practitioners reporting costs as high as $500,000.
Associate professor Nicholas Williams, a bariatric surgeon and academic involved in the study, said insurance costs are creating barriers for patient access, particularly in under-served regions.
“Obesity is probably the most important public health issue of our time,” he said. “New medications such as Ozempic will be a big part of the future landscape of obesity care, but surgery is still the gold standard because the medications are expensive, they are hard to access, and they need to be taken lifelong, which is often not appreciated.”
He added that if the private sector becomes unviable, access to obesity surgery will become even more limited.
“Obesity disproportionately affects lower socio-economic groups, regional, and remote communities and Indigenous populations,” Williams said. “These are the patients with the greatest need for access to obesity care, and if surgeries are not available publicly, then we at least need them to be available as cost effectively and as widely as possible in the private sector.”
Approximately 97% of bariatric surgeries in Australia are performed privately, where indemnity coverage is mandatory. This reliance on private provision heightens the risk that service availability may decline if insurance costs continue to climb.
Alongside rising insurance premiums, surgeons and other specialists will soon be subject to a new federal transparency initiative.
The government will require roughly 11,000 specialists – including surgeons and anaesthetists – to list their service fees on the Medical Costs Finder website. Introduced in 2019, the platform has seen minimal uptake, with fewer than 100 practitioners voluntarily participating to date.
The joint survey also reported that 41% of bariatric surgeons had experienced a malpractice claim, although just 2% of these cases reached trial.
Williams argued that current legal frameworks encourage claims that may not lead to meaningful legal outcomes but do increase operating risks and premium costs.
