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Top responses to changing practice economics


CommBank Australia


1/03/2023 11:44:03 AM

SPONSORED: The GP Insights report shows practices are overcoming economic challenges by putting their staff and patient experience at the forefront.

GP on calculator
Most practices are reviewing their billing models in direct response to rising operating costs.

Australia’s primary care sector is facing significant challenges.
 
Patient demand for general practice services shows no signs of relenting while costs and capacity continue to come under immense pressure.
 
This situation is exacerbated by some patients feeling less healthy, inflationary conditions and persistent talent shortages across the industry. It’s also weighing on many practices’ operational and financial performance and the wellbeing of staff.
 
The new 2023 CommBank GP Insights Report shows that around half of practices reported higher patient numbers last year, and 91% expect the same or more this year (50% expect an increase and 41% stay the same). Only a fraction of those are putting on more doctors. Rising operating costs are also set to continue their ascent, all but ensuring ongoing margin pressure.
 
Despite this impasse, practices are proactively responding and implementing a range of strategies, with CommBank Health CEO Albert Naffah saying that the sector’s resilience is again on display.
 
‘Practices are taking decisive action, prioritising initiatives to manage costs and staff shortages and removing roadblocks to accessible and convenient care,’ he said.
 
‘They are rising to the industry’s top challenges by putting their staff and patient experience at the forefront.’
 
Sustainable billing models
Most practices are being forced to review their billing models in direct response to rising operating costs. With a broad acknowledgement that the Medicare rebate lags practices’ running costs, many practices are reducing the proportion of bulk billed services, often reserving it for those who need it most.
 
The GP Insights Report also found that fees for privately billed consultations are expected to increase further and that 62% of practices are using variable billing structures. This included changing the fee structure for out-of-hours or specialised appointments.
 
‘The flow-on effect of billing model changes is reaching patients and practices differently. While some patients may be less satisfied with rising out-of-pocket fees, most understand the reasons why,’ Mr Naffah said.
 
‘Most practices that have changed billing models report higher GP and staff satisfaction alongside improved financial performance.
 
‘Practices we’ve spoken to point out that this can help fund the ongoing delivery of more affordable care.’
 
Retaining and recruiting staff
With 72% of practices saying that staff shortages are constraining their capacity to meet patient demand and growth objectives, finding, and keeping people is a top priority. According to the research, practices are focusing on staff wellbeing and workplace culture, with many conscious of untenable workloads.
 
Nurturing a friendly and supportive workplace is the top method to differentiate the practice when attracting and retaining talent, a focus for 62% of practices. Flexible working, offering higher remuneration, team-building initiatives and social events were also among the top tactics.
 
For regional practices that tend to be more impacted by a lack of access to international doctors and medical students, there is a greater focus on competitive remuneration and professional development compared to their metropolitan counterparts.
 
Enhancing the patient experience
While patients’ satisfaction with the quality of care remains high, it is in areas relating to convenience where patients are beginning to take notice. The research shows that fewer patients are very satisfied with the availability of their preferred GP and options to book and manage appointments.
 
At the same time, patients have expressed their preference for booking appointments online compared to the phone, and around 8 in 10 agree it enhances their overall experience. This is where patient expectations and practices’ investment in technology is closely aligned.
 
‘Practices have prioritised investment into digital solutions that create a more seamless patient journey over several years and are now realising the benefits,’ Mr Naffah said.
 
‘Digital communication with patients, websites with booking functionality, and integrated payment solutions are among the top areas of adoption.
 
‘Now, practices are looking at how they can enhance the patient and practice experience, drive efficiencies and augment the delivery of care. Data featured heavily among the technologies set to grow fastest in the coming years, including analytics solutions to gain visibility into practice performance and remote devices to monitor patients’ health.’
 
Read the full report for more information about the top strategies and tactics being employed across general practice and the outlook for the industry.
 
Things you should know: The 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. The Bank 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 decision-makers/influencers at GP practices that occurred during 16–30 October 2022 and 1020 patients that occurred during 11–18 October 2022. 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. All material presented, unless specifically indicated otherwise, is under copyright to the Commonwealth Bank of Australia. This information may not be altered in any way, transmitted to, copied or distributed to any other party, without the prior written permission of the Commonwealth Bank of Australia.
 
2022 Commonwealth Bank of Australia ABN 48 123 123 124 AFSL and Australian credit licence 234945
 
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