Bulk billing incentive to be split equally between GP and practice

Doctors will have to split the federal government’s bulk billing incentive equally across practices, in a move labelled disappointing by the RACGP.


One of the government’s key election pledges was to deliver 18 million more bulk billed GP appointments each year, as part of its $8.5 billion Medicare package.

As part of this commitment participating practices would receive an additional 12.5% incentive payment on every $1 of MBS benefit earned from eligible services.

Participating GPs must bulk bill every eligible service for every patient to receive the incentive payment, which will be in addition to MBS benefits paid.

But detail on who would receive the incentive payment or if it would be split across the practice remained unclear.

Now, federal Minister for Health Mark Butler has announced the incentive would be split equally between GPs and practices registered for the Bulk Billing Practice Incentive Program.

It means GPs will have to split the additional incentive equally across each practice they work at.

RELATED: Billions in bulk billing funding won’t make general practice cheaper

In a statement released on 15 August the government said it had consulted closely with doctors and GP practices to determine the split.

RACGP President Dr Michael Wright said GPs were disappointed by the decision.

“The College has consulted our members and following their feedback we’ve been clear with the government that their preference is that this incentive should go to GPs. This is the best way to support GPs to participate in the program,” he said.

“In polling our members, we found fewer than one in 10 want the payment to be split evenly. Most GPs have said this additional funding should be paid to GPs the same way as other Medicare billings.

“It’s disappointing that the government has not chosen the model that GPs have said would be the best model for them and their patients.”

Dr Kiran Puttappa, founder of GP West, said the decision was a “fair call” from the government.

Dr Puttappa, who oversees 20 GP clinics across Perth, said as a GP he could see why practitioners would want 100% of the incentive, but from a practice owner’s perspective it would make running a clinic even more expensive.

“This way the practice is looked after, and the practitioner is also looked after,” he told Medical Forum.

“As a practice owner I feel it’s a fair call, at the end of the day you still have to run a quality medical centre and still keep up all of your accessibility, pay the staff, pay increasing rent.

“If you don’t keep up with all of those services then the GP cannot see the patients in the practice.

“If 100% of this incentive had of gone to the practitioner it would be tough from a medical centre running point.”

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The federal government also claims GPs who move to 100% bulk billing rates will earn more than average mixed billing GPs.

According to its figures a GP at a city practice that bulk bills every visit would earn over $5,300 more than a mixed billing GP that provides the same number of services.

In rural areas it claims the earning boost is larger, with a GP at a rural practice that bulk bills every visit earning almost $24,000 more than a mixed billing GP for providing the same number of services.

However, questions remain over whether GPs will actually earn more after factoring in the overhead costs of running a clinic and now the split of the 12.5% incentive payment.

Whether the government will meet its target of nine in 10 GP visits being bulk billed by 2030 is also in doubt after Department of Health, Disability and Ageing’s documents highlighted that some patients will still face out-of-pocket costs.

RELATED: One quarter of GP clinics ‘won’t meet bulk billing target’

The document stated: “The department estimates that 23% of clinics are unlikely to join the program based on financial incentives.”

Labor’s bulk billing incentives are due to come into play on 1 November.

Dr Wright said the College will work with the government and GP clinics to ensure the incentive supports patients to access care.


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