Doctors Advocate for Evidence-Based Healthcare Funding Amid Medicare Debate
General practitioners have issued a strong call for healthcare funding to be grounded in evidence rather than political considerations, as tensions escalate over bulk-billing and Medicare rebates in the Hunter region. This appeal coincides with the release of pre-budget submissions from two major medical organizations, highlighting the urgent need for systemic reforms.
Medical Groups Push for Significant Budget Investments
The Royal Australasian College of Physicians (RACP) has urged the federal government to make substantial investments in the nation's healthcare system in the upcoming May federal budget. In its submission, the RACP emphasized the necessity of addressing workforce shortages and reducing health inequities across Australia.
RACP president Jennifer Martin, a professor at the University of Newcastle, stated that the budget must include a comprehensive plan to alleviate the chronic strain on the healthcare system. "The system is under significant strain right now and we have a chronically burnt-out workforce across the country," Professor Martin said, underscoring the critical state of healthcare delivery.
Debate Over Bulk-Billing and Medicare Rebates Intensifies
The Albanese government is currently considering the introduction of publicly-funded bulk-billing clinics in the Hunter region. However, many GPs argue that federal funding should instead be allocated across all clinics through increased Medicare rebates. Currently, rebates for a standard GP consultation stand at $43.90, while the average out-of-pocket fee in the Hunter network is $51.
Since 2011, Medicare rebates have increased by only 26 percent, despite health sector inflation rising by 62 percent over the same period. This disparity has fueled calls for a more equitable funding model.
Proposal for Independent Pricing Authority Gains Traction
In its pre-budget submission, the Royal Australian College of GPs (RACGP) has advocated for the establishment of an independent pricing authority. This body would ensure that Medicare rebates accurately reflect the true cost of delivering care, free from political influence.
RACGP president Michael Wright explained that such an authority would prevent rebates from being set based on short-term political imperatives. "Governments on both sides of politics have set rebates based on short-term political imperatives, rather than a sound evidence base," Dr. Wright said, highlighting the need for depoliticized decision-making.
Bulk-Billing Rates and Incentives in Focus
Medicare data for the December quarter reveals that the bulk-billing rate in the Hunter New England/Central Coast area was 76.2 percent, marking an increase from 73.3 percent and 71 percent in the same quarters of 2024-25 and 2023-24, respectively. Despite this improvement, the Hunter area ranks as the seventh lowest among the country's 31 primary health networks.
In November, the government expanded bulk-billing incentives to include all Medicare-eligible patients, a move aimed at encouraging more GPs to adopt bulk-billing practices. Previously, these incentives were restricted to youngsters, pensioners, and concession card holders.
Dr. Wright acknowledged the value of these incentives but cautioned that support from the current government does not guarantee future commitments. "For many practices, moving to become a fully bulk-billing practice is not just a financial decision - it is about trust," he noted, emphasizing the importance of stable, long-term policies.
Broader Implications for Healthcare System
A well-resourced primary care sector is crucial for reducing hospital demand by preventing avoidable admissions and emergency presentations, which in turn delivers significant savings to the overall health system. Federal Health Minister Mark Butler recently indicated that out-of-pocket costs for specialists will be a key focus in the government's second-term agenda.
Professor Martin further stressed the need for better workforce modelling to identify and address gaps in specialist care, particularly in regional, rural, and remote areas. "Patients living in regional, rural and remote areas are bearing the brunt of these workforce shortages - and it's coming at a great cost to their health," she warned, calling for targeted investments to bridge these disparities.
As the debate continues, medical professionals remain steadfast in their demand for evidence-based funding solutions to ensure the sustainability and equity of Australia's healthcare system.
