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Federal Budget 2024–25 ‘dropped the ball’: RACGP
The college has slammed the Government’s spending, labelling it a ‘huge disappointment’ which ignores struggling patients and exacerbates a critical GP shortage.
The total health spend in the 2024–25 Federal Budget is $8.5 billion. (Image: AAP/Lukas Coch).
The RACGP has been left fuming, after the Federal Government handed down a 2024–25 Budget which it says offers ‘little to no relief’ for patients and threatens to undo Medicare improvements.
Released on Tuesday evening, the Budget was labelled a ‘huge disappointment’ by the college, saying it does little to ensure Australia has enough GPs for the future or improve access to primary care for all Australians.
It said the Government spend fails to make healthcare affordable for struggling patients in the midst of a cost-of-living crisis.
Speaking from Canberra’s Parliament House, RACGP President Dr Nicole Higgins said the Government has dropped the ball in its commitment to strengthen Medicare and reduce out-of-pocket costs for patients.
‘The Government took the first step to repair decades of devastating underfunding of Medicare and general practice care last year – now this work will stall,’ she said.
‘Australians are already putting off essential care due to rising costs. This Budget won’t help, so out-of-pocket fees will increase. It will mean a sicker nation and more pressure on hospitals, which will cost the Government much more.
‘There is no more support for rural and regional patients, or people with chronic conditions, which is where the need is greatest. It shows the Government has the wrong priorities for fixing the health system.’
The RACGP said there is a critical lack of support to get more GPs in training, labelling it ‘short-sighted’ and exacerbating a critical workforce shortage.
Dr Higgins said Australians will be disappointed the Federal Government ‘hasn’t seen the value in increasing Medicare rebates’ as a cost-of-living relief measure.
‘The Medicare rebate belongs to patients – it’s the amount the Government pays to subsidise their healthcare,’ she said.
‘This Budget says the Government isn’t interested in ensuring the subsidies for healthcare for Australians are anywhere close to the real-life costs of providing that care.
‘There is no substitute for the quality care provided by a GP who knows you and your history. General practice helps people live healthier lives and stay out of hospital. The smartest and most cost-effective health investment Government can make is increasing patients’ Medicare rebates, so they can access affordable care.’
The Budget’s $8.5 billion health spend includes:
- $17.4 million to extend the General Practice Incentive Fund until 30 June 2025
- $90 million to fund the implementation of the health-related recommendations of the Kruk Report
- $16 million to implement system changes to MyMedicare
- $71.7 million for Primary Health Networks to commission the services of mental health nurses, counsellors, social workers and others, to provide ongoing care to people with complex needs, in between their GP and specialist appointments
- Extending Single Employer Model (SEM) trials until December 2028 to attract and retain GPs in areas of workforce need
Additionally, it will see investments into Medicare, including $57.4 million to extend Practice Incentive Program Quality Improvement incentive payments.
It will also include $56.5 million to implement recommendations from the MBS Review Taskforce, and $23.1 million to extend the MBS Continuous Review program.
As well as $227 million for 29 additional Medicare Urgent Care Clinics, which the RACGP says are not ‘value for money’ and are an ‘inefficient use of limited health resources’.
Dr Higgins added that while SEMs have a role to play in addressing areas of workforce need, a thorough independent evaluation is needed prior to any further rollout to test what works.
The RACGP welcomed the Kruk Report funding but said that while international medical graduates play a valuable role in Australia’s health system, more support is needed to help Australian GPs in training.
‘The College acknowledges the $90 million funding to implement the recommendations in the independent Kruk review of Australia’s regulatory settings relating to overseas health practitioners,’ Dr Higgins said.
‘Negotiations on how this will be done are still underway.’
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