Victorian GP Services Close Amid Funding Challenges
17 Oct 2025
Why the closures are happening:
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Medicare funding gaps: Cohealth CEO Nicole Bartholomeusz says the current Medicare model does not cover the cost of care for patients with complex needs.
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Extended care not funded: The clinics provide multidisciplinary, coordinated care for vulnerable patients, which goes beyond the short consultations typically reimbursed by Medicare.
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Bulk-billing incentives insufficient: While the Federal Government is introducing the Bulk Billing Practice Incentive Program (BBPIP) from 1 November, Cohealth says these measures do not fully address the costs of servicing their high-need patient population.
Impact on the community:
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Patients with complex health and social needs will lose access to ongoing, trusted care.
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Emergency departments and public hospitals may face additional strain as patients seek alternatives.
Responses from authorities:
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The Federal Government expressed disappointment and encouraged Cohealth to explore BBPIP incentives and maximise MBS billing.
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RACGP Victoria Chair Dr Anita Muñoz called on the Victorian Government to intervene, noting the closure affects lifesaving healthcare for disadvantaged communities.
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The Victorian Government highlighted its $188 million investment in community health last year and said it will continue advocating for improved Medicare rebates for patients with complex needs.
Context:
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Financial pressure on bulk-billed clinics is not unique. Similar closures have occurred in other states, including a fully bulk-billed Canberra clinic that went into voluntary administration in April 2025.
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RACGP President Dr Michael Wright warned that losing practices in vulnerable communities undermines access to essential primary care.
Source: newsGP, 2025.
