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Mixed feelings: Our clinic’s move away from bulk billing


Alisha Dorrigan


11/08/2023 3:35:50 PM

When a move to private practice was the only option to keep the doors open, it prompted Dr Alisha Dorrigan to contemplate the current state of primary care.

Person paying medical bill.
Despite being almost inevitable, the changeover to private billing has been met with mixed feelings.

After 22 years of providing a mostly bulk billed service to the local community, our doctor-owned clinic in southeast Sydney transitioned this week to private practice.
 
Despite the move being an inevitability given the grim state of primary care funding, the changeover has been met with mixed feelings.
 
It’s a conundrum unique to the GP; asking oneself multiple times a day whether a person should be charged for the cost of a service provided to them, or alternatively offered a substantial discount that will leave the doctor grossly underpaid and their clinic carrying a financial loss.
 
Or in Medicare speak – deciding whether to bulk bill or not.
 
There is no other contractor or employee who has to grapple with this decision so frequently, and by extension who feels that they have to justify their income or the need to run a financially viable business.
 
At our practice, I encountered an intergenerational contrast in attitudes towards private fees and abandoning bulk billing, with some colleagues feeling deeply conflicted after decades of providing equitable access to healthcare.

Meanwhile, those of us in the earlier stages of our careers were generally more positive about the transition, in no small part due to an extension of those intergenerational differences, with younger doctors having to pay off sizeable student loans debts, struggling to afford their own housing, and – ironically – needing to pay out-of-pocket for their own healthcare.
 
Eventually, in one of many practice meetings where billings were discussed in the leadup to taking on a privatised fee structure, a colleague lamented plainly that it is ‘time we get paid like any other professional’.
 
It was one of many discussions that we had over the preceding months, which included exploring whether the increased bulk billing incentive that is yet to come into effect could make any meaningful difference. Ultimately, it was felt that the upcoming changes will add another layer of complexity to an already confusing system that could leave GPs vulnerable to audits with potentially devastating personal consequences.
 
I find it curious that other medical specialties have seemingly approached private practice with comparative ease. Those working outside of salaried hospital positions that come with the luxuries of leave entitlements, superannuation and indexed pay rates, charge a fee for their time and expertise that rarely aligns with the value assigned by the Medicare.
 
Over time, bulk billing non-GP specialists have become essentially non-existent, yet this is not seen as particularly controversial even though primary care GPs often find themselves criticised for doing the same.
 
I believe this reflects the deeply problematic attitudes GPs face, which stem from a lack of respect and value for our own time and expertise. These attitudes often become internalised and probably contributed to the apprehension and anxiety felt at our practice after the decision was made to stop bulk billing.
 
So, how did the first week go?
 
It is still early days; however, the first week of private billing went reasonably well. A few medical record transfer requests were received but the appointment book has otherwise remained active.
 
My predominant feeling has been a sense of relief that I no longer have to subsidise healthcare personally and the outlook on my career of choice is subsequently far more optimistic. I’ve had conversations with patients about what to expect moving forward and nervously talked money during consultations for the first time in my career, but the response has been largely gracious and understanding.  
 
Taking a wider perspective, the view is not quite as positive.
 
The slow and steady collapse of adequately funded primary care as we currently know it is monumental, and the flow-on effects will be catastrophic as people delay presenting to their GP for medical care or avoid going altogether. Preventive health measures will be neglected and critical diagnoses will be delayed, all of which will have life-limiting consequences for those who cannot afford to access healthcare.
 
It will also be incredibly costly for Medicare, undercutting the economic rationale for stifling the funding of GPs who keep people healthy and out of hospitals.
 
When combined, it’s little wonder that there is declining interest in pursuing a primary care career, which is forecast to result in a shortage of over 10,000 GPs in the next decade. To compound matters, fewer than half of all GPs plan to still be practising in 10 years’ time.
 
Urgent care clinics may help carry some of the load, but they are no replacement for the whole person care across the lifespan that is provided by GPs who forge longstanding relationships with their patients. A relationship that fosters trust and engagement with our health system and ultimately saves lives.
 
Unless more is done, it’s only going to get harder and more expensive to access primary care – but no individual GP or clinic should have to bear responsibility for this system-wide failure.
 
In order for GPs to continue to do this work and for medical graduates to consider pursuing a career in the specialty, financial viability is essential.
 
Presently, charging a fee may be the only hope we have to keep clinics open, halt the exodus of working GPs, and attract young doctors who will hopefully regain interest in a job that is vital not only to the health system, but also for the 23 million people who each year need to see their GP.
 
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Dr Mayoor Agarwal   12/08/2023 6:19:15 AM

wonderfully said! Thank you for writing this piece.


Dr Christine Barstad   12/08/2023 9:00:56 AM

If you bulk bill the preventive medicine items which are reimbursed at a reasonable level, and charge the 23/36/44 levels, you encourage the right behaviors. It takes time to do a 721 and/or a 723 properly with all diagnoses included but patients truly benefit from the repeated exposures which allow for education related to their health issues.


Dr Dhara Prathmesh Contractor   12/08/2023 9:17:22 AM

Graciously narrated Alisha .
As primary care health practitioners, we are working close with our communities. Being proud to be patients first port of contact for any health condition. Being the practitioners who are educating, maintaining and treating both the acute and chronic diseases, providing continuity of care for our patients. We aim to keep our patients and communities healthy. And help reduce burden on tertiary health care services.

We wish to provide the best health care. But at the same time, we should be able to keep our facilities open to provide that!

Unless we can get rebates and subsidies on our expenses: monthly lease, electricity, staff pay, IT etc. As most patients and as practitioners we wish, we could suffice to be bulk billing doctors for our patients.

Wish we could get all the amenities required to run the practice as bulk billed !

Best wishes for your transition to private practice.


Dr Kenneth McGowen Doust   12/08/2023 10:03:07 AM

I retired after 33 years of 100% bulk billing . The practice made a comfortable income ,but ,probably not as rewarding financially as some would expect these days .
Having been responsible many years ago for the salaried GP services in the ACT , it is my opinion the Fee for service payment should have competition from a Govt supported salaried system of total care .The days of Fee for service only are over.


Dr Milton Arthur Sales   12/08/2023 11:33:13 AM

We are into the second month of private billing and would like to share our experiences. Each of the GPs in the practice have patients that they will continue to bulk bill because of the knowledge of their extreme financial circumstances. Initially, there was a sense of the practice being a bit quieter. However, upon analysis of the trends, our forward booking times have reduced and there are many more on the day appointments available now, which are all filled by the end of the day. Cash flow increased, and surprisingly the number of consultations provided also did. We all had a group of people who were regular attenders, who maybe didn’t need to come as often, but used to make forward appointments just in case. Our sense is that these have significantly diminished, freeing up time for more urgent appointments to be available.

With all the media attention to the failing of funding of general practice, and the reduced number of graduates many we’re expecting a change.


Dr Milton Arthur Sales   12/08/2023 11:43:27 AM

We charge a reduced fee for pensioners and healthcare card holders compared to private patients. It is more than the triple Bulk Bill incentive that will eventually come. There is no way we will revert to bulk billing again when that occurs because we know from previous experience that eventually it will fall behind costs .
Increased focus by Medicare compliance,
on the finer points of chronic disease, and nurse items has made us fearful of using those so we have abandoned them and are private billing instead.
The ridiculous admin burden attached to GPMP and 10997 should be freed up to allow this additional funding to be available for chronic disease, management, and nurse work without the fear of an audit and its emotional and financial penalty. The compliance branch must be proud of their efforts reducing funding for primary care. The health minister has no idea of its impact as evidenced by his embarrassing response to a GP with a please explain letter re-10997 on live radio.


Dr Peter JD Spafford   12/08/2023 8:50:35 PM

The bulk billing incentive is a bribe by the government to bulk bill those with concession cards. Why can this not be added to a rebate with the ability to charge a gap fee - $2 to $20 or whatever like paying at the dentist? Medicare is living in the past. I am still in favour of the fee for service model rather than the UK NHS which is not doing well for patients or practitioners. Rather than abandon a system that has made Australian health care results impressive on the global stage, just modernize it. Do not throw away what is working but needs a bit of servicing. Face it, bulk billing statistics are government election issues. Patient care is ours. Charge what it takes to provide a service. Hopefully the government (and the RACGP) will be able to see that most people can afford something, but not have to front up everything just to get most of it paid back.


Dr Robert William Micallef   13/08/2023 7:14:23 AM

Medical students are always interested in finding out how I set my fees. I explain to them as a professional I am entitled to earn a professional income. Most similar professional people charge fees that amount to around $400 per hour or more. So that translates to $100 per consultation. It is pretty simple maths. Keep in mind trades people are charging three times this amount and offer pensioners a 10% discount.