Government warns against ‘quick fixes’ in Medicare overhaul

A leading health economist has urged the government to silence the loudest voices and avoid quick fixes as it embarks on a major reform of the Medicare system.

Stephen Duckett of the University of Melbourne warned against “ill-conceived” quick fixes, including putting money into the system without structural reform in the upcoming budget.

“Injecting money into a system that needs structural reform is not the best way out,” he said.

“Simply increasing discounts cannot (lead to) higher wholesale rates and does not contribute to the development of the structural form needed for modern primary health care.

“The reform process must start with a good foundation and not be distracted by the loudest voices insisting on a poorly designed quick fix that won’t age.”

He added that one of the challenges facing the general practice is the rise of corporate ownership of clinics that want “the same rate of return” they get from the mall.

The health economist spoke with Royal Australian College of General Practice president Nicole Higgins and AMA ACT president-elect Kerry Ost as part of a National Press Club discussion about the future of Medicare.

Dr. Higgins and Dr. Duckett were key members of the government task force that released a report last week on strengthening Medicare.

The report recommends that the government strive to transform the public health network into a more accessible, “blended” one and make better use of data and digital technologies.

The President of the RACGP stressed that a review of common practice should be at the heart of Medicare reform.

“We can no longer take general practice for granted… It’s time to invest in general practice. If not, and this is a call, you will miss us if we leave,” said Dr. Higgins.

Dr. Higgins also warned New South Wales and Victoria against a proposal to impose a payroll tax on arrangements with GPs and independent GP contractors.

“We have state premiers on the one hand saying we need health, let’s fix Medicare, but on the other hand we have a payroll tax,” she said.

“We already pay tax on salaries, including general practitioners and training. It will force GPs to drop Medicare, and that’s already happening, and pass those costs on to the patient.”

Originally published as Government warns against ‘quick fixes’ in Medicare overhaul