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Chapter 3: General practice viability

Challenges of practice ownership

Practice owners are primarily challenged by increasing business costs and maintaining profitability (Figure 37).

Sourcing and retaining GPs continues to be a challenge nominated by more than three in four practice owners.

For 70% of all practice owners, the challenges of increasing business costs, business profitability and sourcing and retaining GPs are in their top three nominated issues. This finding is almost identical to 2023, where the prominence of these issues as top challenges increased from the previous year.

Figure 37. Main business challenges faced by practice owners

Main business challenges faced by practice owners

Measure: Proportion of practice owner GPs responses to the question, ‘What are the main business challenges you face as a practice owner?’.
Sample: Practice owner GPs n=739.
Source: The Navigators, RACGP Health of the Nation survey April/May 2024.

 

The level of concern about practice viability jumped between 2021 and 2023, before steadying in the last year. In 2024, over eight in 10 (81%) practice owners were concerned about the viability of their practice, a figure identical to that observed in 2023 (Figure 38). Almost nine in 10 practices indicate that operating costs have increased over the past 12 months.

Insights from across the sector indicate that 66% of practices are changing billing models to reduce bulk billing, directly in response to higher costs.10

 

Nearly one in four GP practice owners (24%) indicated that they intended to take steps to sell their practices in the next 12 months.

Figure 38. Proportion of GP practice owners who are concerned about practice viability

Proportion of GP practice owners who are concerned about practice viability

Measure: Proportion of practice owner GPs responses to the question, ‘Are you concerned about the viability of your practice?’. 
Sample: Practice owner GPs 2020 n=440, 2021 n=325, 2022 n=783, 2023 n=468, 2024 n=739.
Source: The Navigators, RACGP Health of the Nation survey April/May 2024.
 

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