GP Funding Reform Debate Grows After New Grattan Report
07 May 2026
The report, A better Medicare: How to reform GP funding, says the current system rewards shorter appointments and does not properly support patients with more complex health needs.
Researchers said expanding bulk-billing incentives to all patients in late 2025 removed one of the few funding measures that directed extra support towards disadvantaged communities.
The report argues this has led to more funding flowing into wealthier areas, while vulnerable patients are missing out on the longer and more complex care they often need.
Rashmi Sharma said the findings are not surprising because patients with chronic illness and complex conditions usually require longer consultations.
She said while increased investment in general practice is welcome, current funding models do not fully address the needs of vulnerable groups.
The Grattan Institute is calling for a blended funding model, where clinics could combine fee-for-service payments with flexible funding based on enrolled patients and their healthcare needs.
The proposed model would consider factors such as age, health conditions, Aboriginal status, disadvantage and rural location when distributing funding.
However, Associate Professor Sharma warned against moving too far away from Australia’s existing fee-for-service system, saying it has helped create a strong and efficient healthcare system.
She said reforms should instead focus on improving support for longer GP consultations, chronic disease care and mental health treatment, while keeping fee-for-service as part of the system.
https://www1.racgp.org.au/
Source: newsGP / Grattan Institute