Grattan Institute Calls for New Approach to GP Funding
03 Jul 2026
The think tank says the current Medicare fee-for-service model alone is no longer enough to meet the growing needs of patients and is calling for a blended funding model that combines different payment methods.
The report says more than 90% of government funding for general practice is based on fee-for-service payments. While this model supports individual consultations, it does not adequately reward preventive care, long-term patient relationships or team-based care for people with complex health conditions.
The Grattan Institute says a blended funding model could give GP clinics greater flexibility to provide coordinated care while continuing to support high-quality patient services. However, it notes that the balance between flexible funding and fee-for-service payments will be critical to the success of any reform.
The Royal Australian College of General Practitioners (RACGP) supports keeping fee-for-service as the foundation of general practice funding, with additional blended funding to improve care for patients with chronic and complex conditions.
RACGP President Dr Michael Wright said Australia’s current funding model has contributed to strong health outcomes, but general practice also needs greater investment. He said the focus should not only be on how funding is delivered, but also on increasing overall funding for primary care.
The RACGP continues to advocate for an independent pricing authority to set Medicare rebates based on the actual cost of providing GP care.
The Grattan Institute says funding reform should now move beyond discussion about whether change is needed and focus instead on designing a funding model that supports patients, healthcare professionals and the future of primary care.
Grattan Institute Calls for New Approach to GP Funding
Source: newsGP / Grattan Institute Policy Brief, July 2026.