The Australian Government will take full policy and funding responsibility for GP and primary health care services in Australia.
This major structural change will break down the barriers in Australia's health system, deliver better integrated care to patients, and take pressure off hospitals.
This change amounts to a $18.7 billion takeover of funding responsibility for primary health care and GP services from the states and territories over the upcoming forward estimates.
Australia has a significantly higher rate of hospitalisation than comparable countries - double that of Canada and significantly higher than the United States, the UK and New Zealand.
In addition, too many Australians find themselves being referred from one health service to another, without receiving effective, integrated care - and end up visiting a hospital.
It is estimated that last year, some 441,000 hospital admissions could have been avoided through providing better care in the community - nearly one in ten hospital admissions.
Making a single level of Government responsible for both the majority of the cost of a visit to the hospital, and all GP and primary care, will permanently entrench a financial incentive to take pressure off hospitals.
With its majority funding responsibility, the Commonwealth will now have a strong financial incentive to ensure that people are treated through less expensive primary care services, rather than being shunted into expensive hospital services.
This will reduce cost shifting and provide more convenient care for patients.
Moving all GP and related services under the umbrella of one government is also a critical part of making these services better coordinated and more responsive to the needs of patients.
For example, in practice this will mean being able to bring together State Government community services such as community health clinics with allied health services such as dietiians and psychologists, together with Commonwealth services such as GP services in the one setting.
The Australian Government taking full responsibility for primary care will also lay the foundation for further reforms to further improve the coordination of GP and primary care for people with chronic illness in the future.
These reforms build upon the Government's existing investments in strengthening primary care, including:
- Delivering 36 GP Super Clinics around the country
- Increasing the number of GP training places by 35 per cent.