Ripping $5 off the rebate is false economy

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The Federal Government is proposing to reduce standard General Practitioner (GP) rebate by $5.00 when Australian GP consultations are the third lowest in the OECD and are one third of specialists’ costs of consultation.

There has been NO increase in government expenditure per person for GPs in 10 years with total spending in 2012/2013 at $7.4 Billion.

In the same period, hospital expenditure by the Federal Government has grown by a 50% compound.

The growth of public hospital expenditure continues on the same curve.

More than 85% of Australians see a GP annually.  17% of patients in poor health with medical problems don’t see a doctor because of cost.

The decision by the Tony Abbott Liberal Federal government to decrease rebates by $5.00 to general practitioners is only offset by the new ability to charge a gap payment simultaneously.

The net impact of these changes is no change to the overall quantum paid by the Federal government as patients will just be seen more frequently.

However the likely impact will be on those who allow a minor problem to become more serious and lead to potentially higher hospital admissions.

With the average cost in Australia of hospital admission being $4230, it does not take long to build up costs and cause gridlocks to the system.

There will be no $3.5 billion saving to the Federal budget from this initiative.

The likely impact will be a multiple of that cost and worse health outcomes.

This is a false economy when a smarter alternative was needed.