Unless something is done to stabilise Medicare pricing soon, general practices will cease to be viable, according to clinic owners’ group.
The Australian GP Alliance – which represents non-corporate practice owners – is making a renewed call for the establishment of an independent pricing authority for Medicare, as clinics report rising cost concerns.
According to deputy chair Dr Mukesh Haikerwal, underfunding from successive governments of all stripes has left the GP business environment in an unstable state.
Findings from the RACGP’s Health of the Nation report, for instance, indicate that three in four clinics report rising costs, declining profitability and retention as major concerns.
“All of these are directly related to underfunding of Medicare commencing with the Labor and Coalition freezes on rebate increases under Rudd/Gillard/Abbott and Turnbull government and below-inflation increases to an already depleted rebate under the Morrison and current Albanese governments,” he said.
It has become clear, the Melbourne GP said, that governments cannot be trusted with funding primary care.
“The status quo is the whim of the minister and the government of the day and what they feel they can afford to spend, rather than what services cost,” Dr Haikerwal told The Medical Republic.
“We’re in a situation now where the uncertainty makes it very difficult to plan business into the future.
“Even if [an independent authority underfunded general practice], at least there’s some certainty and then you can plan around that.”
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At the very least, he said, it would bring an end to the blame game.
“The first report of the National Health and Hospitals Reform Commission [in 2008] was called Beyond the Blame Game,” Dr Haikerwal said.
“And in reality that’s never been addressed.
“It has been espoused and been agreed to; actually, all the states and territories health ministers of the day agreed to it.
“But the wheels fell off, and we’re back to throwing buns at each other.”
