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Quarter of GP clinics ‘unlikely to join’ new bulk-billing program: DoHDA
The Federal Government has been told an estimated 23% of practices are unlikely to take part in the Bulk Billing Practice Incentive Program.
The Government’s upcoming incentives program aims to lift bulk-billing rates to 90%.
Almost one quarter of general practice clinics are unlikely to take part in the Bulk Billing Practice Incentive Program set to kick in 1 November, according to advice given to the Federal Health Minister by his own department.
Under the Federal Government’s landmark healthcare reforms, the key initiative will see the tripled bulk-billing incentive expanded to all Medicare-eligible people, with practices that bulk bill every patient eligible to receive an extra 12.5% loading payment on Medicare rebates.
But in newly released advice to Health and Ageing Minister Mark Butler from the Department of Health, Disability and Ageing (DoHDA), the Secretary estimates 23% of clinics are unlikely to join the bulk-billing program ‘based on financial incentives’.
However, the program ‘may increase competition in the market and consumer demand for bulk billing, which may lead to higher uptake amongst these clinics,’ the brief states.
‘There is a risk that the percentage of the 12.5% incentive split between practices and providers is not considered a sufficient incentive for practices or providers to join the program.’
According to figures in the DoHDA brief, GP out-of-pocket costs increased from $41.12 per service in 2020–21 to $44.89 in 2023–24, with general practice clinics bulk billing all services halved over the past three years to 26%.
Under the Government’s 1 November incentive, it promises nine in 10 GP services will be fully bulk billed as part of an $8.5 billion package to be delivered over four years.
But the controversial announcement raised concerns among GPs of how realistic this model of billing would be to keep their practices financially viable, with various polls indicating GPs are not committed to move to a 100% bulk-billing model – as reflected in the briefing to the Minister.
Results from a recent newsGP poll of 1399 respondents reveals 71.6% of GPs believe 100% of the 12.5% bulk-billing incentive loading should be allocated to the GP, with individual arrangements then determining how the practice component is to be paid.
RACGP President Dr Michael Wright told newsGP the college is committed to working with the Federal Government to ensure the program is ‘designed to succeed’.
‘The Federal Government is making a significant investment in Medicare which is much needed, particularly after the decade-long Medicare freeze and chronic underfunding of Medicare before that,’ he said.
‘At the end of the day, we share the Government’s commitment to ensuring all Australians can access affordable general practice care.’
The DoHDA brief also indicates that some clinics have offered to establish new fully bulk-billing clinics operating in locations described as ‘bulk-billing deserts’ such as the Australian Capital Territory, where funding was allocated to save a bulk-billing health co-operative clinic in Tuggeranong.
It states that legislative changes are needed to update the patient eligibility for the bulk-billing incentives, with the DoHDA provide Minister Butler with the draft requirements to enable implementation from 1 November.
newsGP contacted the DoHDA for comment.
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