The increase of around 1.5% sits lower than the 2% CPI over the last two years, and though it is lower than the CPI increase, the Royal Australian College of General Practitioners (RACGP) indicates the freeze being gradually lifted is a positive step. However, despite this, the RACGP upholds that the value of care provided by general practitioners (GPs) is not reflected in the indexation rates.
The reintroduction of indexation will be applied in the following phases:
One of the impacts surrounding the extended freeze for GPs comes from their reimbursement equaling the same amount for consultations in 2020 as they were in 2014, while the costs associated with their practices, staff, medical supplies and more have all gone up.
While the freeze has been controversial, the impact it had on patient access wasn’t clear initially. The rates of GP bulk-billing has remained steady until recently, however patients who were not using bulk-billed services experienced an inevitable increase in the average payment they made for the service.
The role of GPs includes treating patients to keep them healthy, which then prevents them from needing the more costly community services such as hospitals. The concern is that with less affordable GP care options available for lower income individuals, this results in untreated health conditions which end up requiring hospital treatment.
Ensure your practice is set up to withhold uncertain circumstances. Take this opportunity to get in touch with a member of our team at BLG Business Advisers today, either online or by calling (02) 4229 2211.