The Eyre Peninsula Local Government Association (EPLGA) has warned that current Medicare funding settings are failing to support the long-term viability of regional healthcare services.
In a submission to the Senate Inquiry into access to Medicare services in rural, regional and remote Australia, the EPLGA highlighted that many regional clinics have moved away from bulk billing due to years of inadequate Medicare indexation.
“Small and remote medical practices are facing higher costs, workforce shortages and limited capacity, but Medicare funding isn’t keeping up with these pressures,” said EPLGA President and Kimba District Mayor, Dean Johnson.
President Johnson acknowledged that changes introduced in November 2025 had made bulk billing more attractive in some cases, but warned providers remain cautious about their long-term sustainability.
“Without confidence that Medicare rebates will keep up with costs, practices are understandably reluctant to change their billing models,” he said.
“This uncertainty directly impacts service availability and access for our communities.”
The EPLGA’s submission also raises concerns about the viability of small practices in the most remote areas, particularly those classified as MMM6 and MMM7, where clinics often operate with limited staff and provide care across multiple settings including hospitals and aged care.
“These clinics can’t achieve the same economies of scale as metropolitan providers, which means they are at a structural disadvantage under current Medicare settings,” said President Johnson.
The EPLGA’s submission makes four recommendations, which are:
- Full indexation of Medicare rebates in line with CPI;
- Catch-up indexation to restore the real value of rebates;
- Stronger, targeted incentives for remote practices; and
- Mandatory rural “stress-testing” of all future Medicare policy changes.
The full submission can be downloaded via the Inquiry’s website.
