Informed Financial Consent (IFC): A Legal Must for Anaesthetists
Introduction
In the complex world of private healthcare, trust and transparency are essential. For anaesthetists, one of the most vital aspects of ethical and legal patient care is the provision of Informed Financial Consent (IFC). It’s more than just a formality — it’s a professional obligation, a patient right, and increasingly, a source of dispute or delay if not handled correctly.
Whether you are an experienced consultant or just starting in private practice, understanding IFC is non-negotiable. In this article, we explore what IFC is, why it matters, what to include, and how to streamline the process without compromising compliance.
What Is Informed Financial Consent (IFC)?
Informed financial consent is the process by which a patient is fully informed, in writing and ideally in advance, about the likely cost of their medical treatment, any out-of-pocket costs, and how those costs will be handled (e.g., via health insurance, Medicare, or direct billing).
In anaesthesia, where fees can be complex and vary widely based on time, ASA score, or hospital arrangements, IFC ensures that:
- The patient knows your fee before undergoing surgery
- Any “gap fee” or out-of-pocket amount is agreed upon
- Disputes or confusion post-surgery are minimised
Why Informed Financial Consent is a Legal and Ethical Requirement
The Medical Board of Australia, private health funds, hospitals, and professional colleges all strongly endorse or require informed financial consent. The Australian Medical Association (AMA) even provides templates to assist with the process.
Failing to provide clear IFC may result in:
- Patient complaints to the hospital or regulator
- Delayed or denied payments from health funds
- Reputational harm for your practice or referring surgeon
But more than these risks, informed financial consent is about respecting patient autonomy. Anaesthesia isn’t just a technical service — it’s part of a relationship built on informed trust.
When to Send the Informed Financial Consent
The best time to issue informed financial consent is at least 2 business days prior to surgery. This allows the patient time to review, query, and prepare for any fees.
In reality, many anaesthetists rely on their rooms, a receptionist, or a billing service to send IFCs on their behalf. If you do this, make sure:
- The right item numbers and estimated duration are known
- Any gap fee is clearly stated
- You keep a record (email or signed hard copy)
What Should an IFC Include?
A good IFC document should be:
- Clear
- Customised to the procedure
- Free from jargon
At a minimum, it should contain:
- Anaesthetist name and provider number
- Date and hospital of the procedure
- Surgeon’s name and the proposed operation
- Estimated anaesthesia time and ASA score
- Item numbers and unit-based fee breakdown
- Total expected fee
- Expected Medicare and health fund rebates
- Gap payment (if applicable)
- How and when to pay
Many IFCs also include a line for the patient to sign, but even an email confirmation may suffice in practice. The key is traceability.
Example: What Happens Without IFC
Imagine a scenario:
A patient undergoes elective knee surgery. The anaesthetist submits a $1,400 invoice, of which only $1,000 is covered by Medicare and the fund. The patient receives an unexpected invoice for $400, becomes distressed, and contacts the surgeon’s rooms.
What follows is a chain of complaints that could have been prevented with a simple, timely IFC email.
IFC protects not only the patient but also the reputation of everyone involved in their care.
How to Simplify the IFC Process
If you find yourself too busy to manage IFCs manually, you’re not alone. Anaesthetists are increasingly outsourcing this part of the process to their billing provider — and with good reason.
Here are some best practices:
- Use a billing service that includes IFC handling as part of the process
- Digitise your IFC forms and send via email or SMS link
- Use pre-filled templates that automatically update fees and item numbers
- Follow up with a text message reminder the day before surgery
At Fast Tracking Anaesthetic Billing Services, we send IFCs as soon as a list is confirmed and ensure they are traceable. This not only protects your income but ensures your compliance.
Common Questions from Patients
“Why do I have to pay extra if I have private health insurance?”
Because your fund only covers a portion of the MBS fee, and anaesthetists often charge above this for their services.
“Can you send the bill directly to the fund?”
In most cases yes, but the gap must still be paid by the patient directly.
“What if I don’t agree with the fee?”
We encourage patients to contact us ahead of time to clarify or discuss options. Transparency is key.
Final Thoughts: Informed financial consent as a Marker of Professionalism
There’s a difference between billing as a chore and billing as a part of your patient care. Informed financial consent is the bridge between clinical care and financial consent. It allows patients to make empowered choices and ensures your work is respected and remunerated.
If you’re not yet sending IFCs consistently — or if you’re relying on outdated paper forms — it might be time to upgrade. Whether you handle it yourself or use a service like Fast Tracking, the goal is the same: transparency, professionalism, and peace of mind.
Need Help Managing IFC?
Talk to Fast Tracking Anaesthetic Billing Services. We handle IFCs, rejections, follow-up, and patient support — so you can focus on clinical care.