Media Release

10 October 2024

 

AGPA Calls for Medicare Independent Pricing Authority

The Australian General Practice Alliance (AGPA) today called for a major overhaul of Medicare including the establishment of an independent pricing authority to set the levels of Medicare rebates.

“Medicare is no longer fit for purpose with successive Labor and Coalition Governments starving funding to the point where primary healthcare for Australians is seriously jeopardized” said Dr Mukesh Haikerwal, Deputy Chair of the AGPA when commenting on the landmark RACGP Health of the Nation 2024 Report.

“With over 7000 General Practices in Australia, over 75% of them report that their major concerns are rising business costs, declining business profitability and sourcing and retaining GPs. All of these are directly related to underfunding of Medicare commencing with the Labor and Coalition freezes on rebate increases under the Gillard / Rudd/ Abbot and Turnbull Governments, and below medical inflation increases to an already depleted rebate under the Morrison and current Albanese Governments” he said.

“Practices are generally small privately owned businesses and their viability is a critical part of our entire healthcare system, providing the essential support services where Australians can see a GP, nurses and other health professionals. The proportion of patients delaying or not accessing healthcare has doubled as rising costs and underfunding of rebates have forced GPs into private billing. This raises the red-flag of worse outcomes as early diagnosis and treatment brings better results for patients”

“When Medicare was first introduced the promise was access to affordable universal health care and the rebate was 85% of the “schedule fee” which was close to the actual cost of providing services. The “schedule fee” has been eroded in value and the rebate for Australian Citizens towards their health care costs has been gutted and is now closer to 45%. The costs of providing services sees over 35% of GPs forced to charge over $90 for a consultation. One third of GPs are planning to cease practicing in the next five years, many are reducing hours available and the specialty is not attracting enough graduates to replace them”.

“All of these factors indicate the disaster facing Australians being able to access the excellent GP-led care they are used to and deserve – amongst the best performing health systems in the world. Using other workers to perform single tasks fragments care and near enough is not good enough for our health. Today’s holistic care takes intense life-long learning and skill” Dr Haikerwal said.

“While there are also other factors such as the compliance and regulatory burden, the single factor having the greatest impact is inadequate funding”.

“Successive governments have shown that they cannot be trusted with funding the primary healthcare of Australians.  There needs to be an innovative approach, with ambition to improve the system, consistency and long-term systemic thinking.  It is now time to commence major reforms – starting with an independent pricing authority to set appropriate levels for the Medicare rebate”, Dr Haikerwal said.

Ends

Media Contacts:

Dr Mukesh Haikerwal, Deputy Chair AGPA, 0407 599 332

AGPA Secretariat 02 6290 1505

The Australian GP Alliance (AGPA) represents the interests of GP Practice Owners, addressing issues faced by Principal-led General Practices.

The Australian model of GP owned private general practice has been responsible for our international reputation as an efficient and highly effective primary health care service.

The continuation of high quality primary healthcare in Australia is dependent on the continued viability of the Practices that provide the leadership and infrastructure that allows GPs to practice, and patients to access the healthcare system.

Download media release here

 

The Australian GP Alliance represents doctor-owned general practices across Australia, and we must express our profound concern and frustration regarding the recent announcement of funding changes for chronic disease management item numbers, effective from November 1st, 2024. This decision, coupled with the lack of timely communication and certainty, is not only imprudent but also detrimental to the healthcare system and the patients we serve.

Impact on Patient Care

Chronic disease management is a cornerstone of primary healthcare, providing essential support to patients with long-term conditions. These services are meticulously planned and booked months in advance to ensure continuity of care. The abrupt reduction in funding, without adequate notice or detailed information on the new rebates, jeopardizes the quality of care that our patients rely on. This uncertainty is causing significant distress among general practitioners and their patients, who are left in limbo regarding their ongoing treatment plans.

Economic and Health Consequences

Australia is currently facing an epidemic of chronic illnesses, which are leading causes of poor health, disability, and premature death1. Reducing funding for chronic disease management at a time when the burden of these conditions is escalating is counterproductive. It undermines the efforts of GPs who are at the frontline, managing these complex conditions and preventing hospital admissions. The financial strain on patients, particularly those in rural and remote areas, will likely increase, exacerbating health inequities and placing additional pressure on an already overburdened healthcare system.

Call for Immediate Action

We urgently call on the Federal Government to reconsider this decision and provide immediate clarity on the new funding arrangements. It is imperative that any reforms to the Medicare Benefits Schedule (MBS) do not result in a net reduction of funding for chronic disease management. We also request a delay in the implementation of these changes to allow general practices sufficient time to adjust and plan accordingly.

Conclusion

The health and well-being of millions of Australians depend on the stability and adequacy of funding for chronic disease management. We urge the government to engage in meaningful consultation with healthcare providers and stakeholders to ensure that any changes to the MBS support, rather than hinder, the delivery of high-quality, patient-centered care.

 

 

Medicare

OpEd for 30 July 2024

By Crispin Hull

Medicare is in urgent need of some CPR. Not just the pulmonary and cardio, but a resuscitation of every part of the human body and the medical procedures that can be applied to it.

The death by a thousand cuts of Australia’s once proud universal free medical insurance scheme continued unabated this month.

The annual inflation adjustment applied to the schedule of fees was set at 3.5 per cent – once again below the real rate. And it was not applied to all items.

Read more

On 28 May 2025 the Australian GP Alliance (AGPA)  wrote to members advising it had come to our attention that that the medical data analytics  application Cubiko is ultimately majority owned by medical corporate Sonic Holdings.

The majority ownership by Sonic was believed to have occurred approximately 12 months earlier. The Cubiko website currently states that this controlling interest occurred in April 2023.

Sonic Holdings are a major operator in the Australian Healthcare Sector with approximately 35% of the pathology services. Their website states that they have over 200 GP clinics trading as Sonic HealthPlus, Australian Skin Cancer Clinics and IPN Medical Services.

AGPA expressed its concern that at the time of Sonic taking a controlling interest there was no advice to Cubiko users and while the Cubiko website states that Sonic Holdings have no access to data the lack of transparency is concerning.

Read more

 

Media Release

Australian General Practice Alliance (AGPA) Welcomes Decision on Payroll Tax

22/05/2024

The Australian General Practice Alliance (AGPA) Deputy Chair Dr Mukesh Haikerwal AC and Director Dr Sarah Lewis today welcomed the decision by the Victorian Government to exempt all Victorian General Practice businesses from any outstanding or future assessment issued for Payroll Tax on payments to contractor GPs for the period up to 30 June 2024, and a further 12-month exemption from Payroll Tax for payments to contractor GPs, through to 30 June 2025. This will be available for any General Practice business that have not already received advice and begun paying Payroll Tax on payments to their contractor GPs on this basis.

AGPA along with other medical peak bodies in Victoria has been actively advocating for these changes on behalf of General Practice owners and patients. AGPA has sought clarity, consistency, stability and a fair and understandable system to work with. This decision builds on months of work includes a petition with the Vic Opposition and negotiations with the Victorian Treasurer.

In a joint statement Dr Haikerwal and Dr Lewis said the removal of the retrospective application of the Payroll Tax on contractor GP payments gives certainty to the industry and the extension to 2025 provides General Practices an opportunity to review their business structures and approach to continue to deliver high quality primary care to Victorians,” they said.

“General Practice businesses are a key component of the delivery of primary health care in Victoria and for this to continue they must be both viable and thriving. The Government’s decision today goes some way to provide certainty and allows time for necessary business planning.”

The decision to exempt payments to contractor GPs from Payroll Tax and employee GPs for providing bulk-billed consultations from 1 July 2025 should help to maintain current levels of bulk-billing consultations.

AGPA also welcomes the recognition by the Victorian Government of the importance of General Practice in maintaining the primary health of the community.

“We thank the Victorian Government for its decision and commitment to the primary care sector as this outcome will support practices to remain viable into the future and help Victorians continue to have access to affordable services as we work together through the details to ensure affordability of health services to Victorians. GPs can now focus on caring for their patients and the health system,” Dr Haikerwal and Dr Lewis said.

For media inquiries or further information, please contact:

Dr Mukesh Haikerwal, AGPA Deputy Chair

Dr Sarah Lewis, AGPA Director

 

About AGPA

The Australian General Practice Alliance (AGPA) is Australia’s leading association of independently owned General Practices working to ensure high-quality healthcare delivery to all Australians.

AGPA represents the interests of GP Practice Owners, addressing issues faced by Principal-led General Practices.

The Australian model of GP owned private general practice has been responsible for our international reputation as an efficient and highly effective primary health care service.

The continuation of high quality primary healthcare in Australia is dependent on the continued viability of the Practices that provide the leadership and infrastructure that allows GPs to practice, and patients to access the healthcare system.