How regional practices are responding to the sector’s top challenges

The industry-wide challenges associated with changing practice economics and talent shortages are impacting regional practices differently from those in metropolitan areas.
 
They are also prompting distinct operational responses as practices seek new ways to continue servicing their communities.
 
According to the latest CommBank GP Insights Report, which explores the perspectives of practices and patients, at least two distinguishing factors set the experience of regional practices apart.
 
The first is the focus on financial sustainability.
 
The research shows that regional practices are more likely than metropolitan practices to report significantly increasing costs and lower profits. This may explain why regional practices are almost twice as likely to express concerns about business conditions in the year ahead.
 
Second, limited access to GPs and staff is being felt more among regional practices, particularly as access to overseas doctors and students is constrained. Most regional practices believe this shortfall is inhibiting growth and operating capacity.
 
Despite these challenges, patient satisfaction with the overall practice experience remains high in regional locations, with 40% saying they are very satisfied and a further 54% that are satisfied. This compares to 30% who are very satisfied in metropolitan locations, while 64% are satisfied.
 
‘We’re seeing that some of the industry-wide trends, such as rising costs and access to staff, have a greater impact on regional and rural practices than those in metropolitan areas,’ Albert Naffah, CommBank Health Chief Executive Officer, said.
 
‘However, these constraints are only marginally affecting patient satisfaction. There are very high levels of satisfaction with the quality of care received, which is a testament to the outstanding job regional practices are doing under pressure.’
 
Responding to shifting practice economics
While the GP Insights Report reveals mixed financial performance among regional practices in the past year, there are apparent differences compared to their metropolitan counterparts.
 
Far more regional practices report significantly increased operating costs (41%) compared to metropolitan practices (27%). At the same time, regional practices are almost twice as likely to be increasing capital expenditure (24%) compared to metropolitan practices (13%). The research suggests this is weighing on profit for many practices.
 
Due to rising costs, and in line with metropolitan practices, the most common priority for the year ahead is to review billing models to reduce the proportion of bulk billed consultations. This is a priority for 59% of regional practices and 61% of metropolitan practices, while just over four in 10 are restructuring operational costs and reducing debt.
 
However, the research shows that regional practices may have moved earlier than metropolitan practices in shifting their billing models. While 61% have already reduced the proportion of bulk billing at their practice, the same is true for 55% of metropolitan practices. Within the next 12 months, metropolitan practices are expected to catch up.
 
Looking at changes in the percentage of total billing tells a different story, where the fall in bulk billing rates is more pronounced among metropolitan practices.
 
Strategies for attracting and retaining staff
According to regional practices, attracting and retaining qualified GPs and staff is another top challenge. In fact, 84% said skills shortages are a barrier to both growth and operating at full capacity compared to 68% of those in metropolitan areas.
 
Even more starkly contrasted is the 31% of regional practices that say an inability to recruit international doctors and medical students is significantly limiting, compared to just 14% among metropolitan practices.
 
As a result, regional practices must employ different tactics to compete for talent, with two methods standing out compared to metropolitan practices. This includes almost double the number of regional practices offering higher remuneration packages (49%) compared to metropolitan practices (25%) and more adopting a strong focus on professional learning and development support.
 
‘It is worth noting that nurturing a friendly and supportive workplace culture and flexible working arrangements are the top tactics adopted by practices irrespective of location,’ Mr Naffah said.
 
‘This shows that all practices are intent on improving the staff experience, which beyond finding new efficiencies, will be crucial to managing workloads and well-being.’
 
To learn more about the strategies and tactics practices are using to navigate the challenges and opportunities ahead, read the full CommBank GP Insights Report online.
 
Things you should know:
CommBank GP Insights research findings based on an online survey of GP decision makers and patients. Report released in February 2023. The 2023 report has been published for general information purposes only. As this information has been prepared without considering your objectives, financial situation or needs, you should, before acting on this information, consider its appropriateness to your circumstances, if necessary, seek professional advice. CommBank believes that the information in the report is correct and any opinions, conclusions or recommendations are reasonably held or made, based on the information available at the time of its compilation, but no representation or warranty, either expressed or implied, is made or provided as to accuracy, reliability or completeness of any statement made in the report. Any projections and forecasts are based on a number of assumptions and estimates and are subject to contingencies and uncertainties. Different assumptions and estimates could result in materially different results. The report refers to data sourced from an online survey of 204 general practices and 1020 patients. The survey was undertaken by ACA Research on behalf of the Commonwealth Bank. All analysis and views of future market conditions are solely those of the Commonwealth Bank.

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