The ABC has learned a number of Medicare Local chief executives have been told the Federal Government plans to shut down the current system.
Speculation has been mounting that the local health bodies, which were set up under the Rudd government to organise community-specific health programs, will be scrapped in next month’s budget.
Audio: Medicare Locals likely to be axed in federal budget (AM)
Late last week chief executives of the 61 community-based health organisations held a series of conference calls to discuss the Government’s plans for the scheme.
Some of the Government’s proposals for 2014-15 under serious consideration include:
- ending funding to Medicare Locals
- establishing larger statutory agencies to funnel state and federal funding
- heavier involvement of private health insurers
- more focus on GP involvement
- putting services out to public tender
- abolishing the peak body Australian Medicare Local Alliance
The potential changes have caused widespread angst among the local healthcare organisations.
A circular obtained by the ABC, sent to the heads of each Medicare Local by its peak body, urges each organisation to lobby their local member of Parliament.
“I would urge MLs [Medicare Locals] to continue to engage across the political spectrum and highlight, not only the good work of MLs but what would be lost if MLs were not there,” it said.
There are concerns the changes will lead to more centralised control and a move away from the locally driven programs offered by each organisation.
Sources say communities would no longer be involved in deciding what programs would run.
“Many of the programs have been running for two years and are just starting to hit their straps and show results,” one industry source said.
Medicare Local jobs under threat
Medicare Locals employ 3,000 people and there is no guarantee employees would keep their jobs under changes.
It is understood many talented staff have already left because of the lack of certainty around employment.
There are also worries about handing back control to general practitioners after the success of working with multi-disciplinary teams.
Medicare Local Alliance chair Dr Arn Sprogis says about 70 per cent of their employees are frontline workers.
He says the small organisations are doing a good job of keeping people out of hospital.
“Medicare Locals would do services for people who fall through the gaps – homeless, the disabled, the aged – people who normally struggle to get access,” he said.
“It would be an enormous mistake to reduce the number of Medicare Locals and to reduce the activity that they’re currently undertaking.”
Federal Opposition health spokeswoman Catherine King says she has been hearing from communities concerned about the fate of their service.
“We’ve had some 3,000 workers in this country, health professionals, direct workers in the health sector … have speculation running rife where they believe they are potentially going to lose their jobs and we’ve heard absolutely nothing from the Government,” she said.
‘There’s a lot of question marks around what’s being done’
Video: Abbott declares he won’t close Medicare Locals during 2013 election campaign
Medicare Locals were established by the Rudd government as part of its response to a National Health and Hospitals Reform Commission recommendation to create locally focused regional health organisations.
They have faced criticism for using Medicare in the title, with many people confusing the outlets with the Commonwealth rebate offices.
Before the election, Prime Minister Tony Abbott said he could not guarantee all Medicare Locals would stay open and in their current form.
But during a leaders’ debate last August Mr Abbott also said “we are not shutting any Medicare Locals”.
Last year, Health Minister Peter Dutton said there remained “a lot of unanswered questions about the formal role of Medicare Locals”.
“Our overall desire, not just Medicare Locals, but across the portfolio, is to, in a very tight fiscal environment, get every dollar back to the frontline service,” he said.
“We understand that there’s some good work, but there’s also a lot of question marks around what’s being done.”
The Federal Government ordered a review into the $1.8 billion scheme. It looked at whether the program provided more clinical services or simply added to bureaucracy.
A spokesman for Mr Dutton says the Government has the completed review but that no decision has been taken.
Source: ABC