Rural town’s loss of only GP within 100km is a symptom of broader funding issues: RACGP

The impending closure of Kalbarri’s only general practice will leave 1500 residents without a local GP, exposing the ongoing gap between Medicare funding and the cost of delivering care, the Royal Australian College of GPs (RACGP) has said. 

Kalbarri Doctors Surgery announced yesterday it would close in June, with the owner saying the practice was no longer financially viable after switching to a fully bulk-billed model. Kalbarri qualifies for the second-highest level of increased Medicare funding due to remoteness.  

This follows news Medicare funding would be indexed at only 2.6%, despite Consumer Price Index inflation of 4.2% in the past year. 

RACGP WA Chair and Vice President Dr Ramya Raman said the closure reflects a failure to match patients’ Medicare funding to the true cost of care. 

“If a practice can’t survive while bulk billing, it either has to charge a gap, or it closes,” she said.  

“When a town loses its only general practice despite receiving some of the highest bulk-billing incentives available, it’s clear our health funding system is not meeting the needs of communities. It’s also not the first time we’ve seen this happen in rural WA.  

“MPs are pressuring practices to bulk bill, even as evidence continues to stack up that funding isn’t covering operating costs. 

"The Federal Government has the wrong priorities when it comes to supporting access to affordable general practices for all Australians. This year’s Federal budget includes $25 million to fund new bulk billing practices in NSW to compete with already existing practices in the area.  At the same time, they’re prepared to let bulk billing practices in rural WA close.  

"My challenge to Prime Minister Anthony Albanese and Treasurer Jim Chalmers is to redirect that $25 million for additional practices in NSW and use it to ensure rural communities like Kalbarri in WA can maintain access to their GP.  

“If they are genuinely committed to supporting practices, there is a bucket of money already in the budget to help this service.” 

RACGP President Dr Michael Wright said poor Medicare indexation demonstrates why many GPs have expressed scepticism about switching to a fully bulk billing model to secure the future of their practices. 

“For many GPs, decisions on whether to adopt a fully bulk billing model isn’t just a financial decision – it’s also about trust,” he said. 

“For decades, patients’ Medicare rebates have failed to keep pace with inflation and rising operational costs, driving up out-of-pocket expenses and creating barriers to access.  

“While the Federal Government’s investments in Medicare have shown it values patients being able to access quality care from a GP who knows you, past decades have seen a Medicare freeze and a growing gap between rebates and the cost of providing care, particularly for longer and more complex consultations. 

“Medicare is the most important social program we have, but if funding doesn’t cover the cost of care, it’s not just GPs, but our patients, who are left to cover the gap. 

“It’s time to move beyond the political cycle and for an independent pricing body to set Medicare rebates based on evidence, rather than politics.” 

~ENDS