The better practice program funding formula

Abstract

A decade after the introduction of Medicare, various pressures had emerged in the financing of general practice. The National Health Strategy suggested these could be addressed by supplementing the Medicare benefits program with other payment systems. The Commonwealth government introduced the better practice program (BPP) in late 1994. Through the BPP, the Commonwealth makes payments to general practices calculated according to a formula. Using Medicare claims data, the formula takes into account practice size, patient loyalty to the practice and practice location. The BPP formula is oriented to the free choice of doctor by patients, and free choice of practice location by doctors. It is the exercise of these freedoms that, through the operation of the formula, determines the size of BPP payments. This arrangement is an example of a distinctively neo-liberal mode of government. Show more