GP Funding Model Under Pressure as Clinics Serving Vulnerable Patients Struggle to Stay Open
04 Jun 2026
The warning comes after the closure of a remote Western Australian clinic and a separate review into three Victorian GP clinics run by not-for-profit provider cohealth, which had been at risk of shutting down.
The independent review was commissioned by the Commonwealth and Victorian governments after cohealth announced plans to close clinics in Collingwood, Fitzroy and Kensington due to financial losses linked to Medicare funding pressures.
The report found several factors contributed to the financial strain, including management and governance issues, inconsistent care models, patient complexity, and limitations within the Medicare Benefits Schedule (MBS) funding system.
While the review noted internal operational issues at cohealth, it also confirmed that even with strong management, the clinics would still struggle to break even under current Medicare funding arrangements.
Health experts say the findings highlight broader challenges facing community health services that support patients with complex and ongoing health needs.
RACGP Victoria has warned that many clinics caring for high-need populations are under similar pressure and may face closure without changes to funding.
Doctors say the current Medicare system does not adequately reflect the time, complexity and multidisciplinary care required for patients with multiple health conditions.
The review also highlighted gaps in funding for team-based care and suggested cohealth could be used as a pilot site for future funding reforms.
However, concerns remain about whether current funding levels are enough to support sustainable services, with calls for increased investment in general practice to prevent further clinic closures.
Health leaders warn that without changes, more clinics in both urban and rural areas could struggle to remain open, reducing access to essential healthcare for vulnerable communities.
GP Funding Model Under Pressure as Clinics Serving Vulnerable Patients Struggle to Stay Open