Billing Policy Changes
Dear patients of Life Medical Centre,
As we continue to strive toward innovation and excellence throughout our facility with the aim to exceed the needs and expectations for primary care, we are required to adjust with the changing markets and economic forces.
Unlike other years, the NSW State Government has now changed the scope of Payroll Tax within General Practice. This change, as well as inflation and a continued rise in operating costs means that we need to adopt changes to our fees too, so that we may continue to deliver our standard of care.
Due to Federal Government policies such as the Medicare freeze, which was introduced in 2013, the Medicare rebate value has fallen far short of inflation for the past 10 years.
As an example, the current Medicare rebate of $42.85 for a standard consultation lasting less than 20 minutes equates to less than 50% of the Australian Medical Association (AMA) recommended fee. The AMA regularly provides updated Fee Lists for practices which factor Indexation, Inflation, Cost of Living, and general Operating Expenditure of the healthcare industry. This Fee List provides the approximate costs to the practice for providing the service. As a private business operating within Primary Care, we are unable to provide services at the rate at which the Government deems its value. Therefore, private practices, such as ours, have a “gap” on their consultations.
With the introduction of the State Government’s Payroll Tax to General Practice, this “gap” is increasing to meet our increased tax obligations and continue to provide our patients with our high standard of care.
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