Payroll tax will push patients into EDs: Survey

Victorian taxpayers could be slugged an additional $1 billion if the State Government ploughs ahead with its payroll tax agenda.
 
That is according to a new HotDoc survey of 1800 people, which revealed 4% of respondents would go to an emergency department rather than their GP clinic if consultation costs are to rise.
 
The analysis goes on to suggest that such an exodus would see an additional two million patients stream through Victoria’s already overwhelmed hospitals every year, at a cost of $1 billion.
 
It is a scenario that RACGP Victoria Chair Dr Anita Muñoz described as ‘horrifying’.
 
‘Patients are going to be faced with not seeing a GP who knows them best and can deliver them the care they need in the community and being forced to go into an emergency department, and I think that is inexcusable,’ she told newsGP.
 
‘Everybody is a loser in a situation like this, the patients get increasingly disjointed care, and we know that the more disjointed the care, the more expensive it is.
 
‘Patients need multiple episodes of care to get their needs met and often the emergency department is not able to meet their needs because it is not a place for preventive care and chronic complex disease management, it’s a place for emergencies.
 
‘So, we’re paying a premium price for people to use a service that is not designed for the problems they’re going there for.’
 
Around 8.8 million people present to emergency departments each year, with 2.2 million of those presentations in Victoria, according to the latest Australian Institute of Health and Welfare data.
 
At the same time, there were 50.4 million GP appointments carried out in the state.
 
Using this data alongside its own survey results, HotDoc says the imposition of payroll tax could lead to an additional 2.2 million presentations to emergency departments at a cost of $533 per presentation, totalling $1 billion.

The findings come just days after it was revealed that 95% of Victorian clinics plan to increase patient fees if payroll tax changes are imposed.
 
This would see a jump of around $12 for a standard consultation, with out-of-pocket costs likely to go up to $52.
 
Meanwhile, hundreds of medical centres remain at risk of closure in response to the Victoria Government’s stance on the highly controversial payroll tax change.
 
Earlier this month, HotDoc revealed 28% of patients would see their GP less frequently if fees increased, with 7% saying they would stop going altogether.
 
If nothing changes, Dr Muñoz believes Victoria’s health system is going to become ‘totally unsustainable’, especially with GPs already at breaking point.
 
‘I am almost at a point where I struggle to know what to say about this issue, so great is my frustration and dismay,’ she said.
 
‘Earnest discussions to try and prevent a health system disaster are being treated with such disregard and disrespect.
 
‘I am starting to form the view that until total catastrophe occurs, the decisionmakers and funders in the Victoria Government are going to continue to pretend that we don’t have a problem.’
 
Pressure continues to build on the State Government to scrap the tax or introduce concessions, with every other jurisdiction introducing measures to protect practices.
 
Victoria’s Opposition Health Minister Georgie Crozier said the new data is further proof the tax will drive thousands of patients away from their GPs.
 
‘This new tax will only add more pressure at the worst possible time. This is an insidious tax that will end bulk billing as we know it,’ she said.
 
In October, Victoria Treasurer Tim Pallas announced tax bills will be waived or reduced for clinics at risk of closure but has ignored GPs’ pleas for an amnesty.
 
Last week, the RACGP was among several general practice groups to write to Victoria Premier Jacinta Allan to request that she have direct involvement in finding a solution to the payroll pain.
 
The letter called for no retrospective collection of payroll tax liabilities, a new ruling clarifying that patients’ fees paid directly to a GP for their services won’t be subject to the tax, and a compliance period to allow practices to make changes to be in line with the ruling.
 
Dr Muñoz said since the letter was delivered, progress has been made.
 
‘Finally, after writing to the Premier we have been offered a discussion with the Treasurer, which we will be conducting,’ she said.
 
‘The Treasurer has signalled to us that he has no intention of changing anything but he’s willing to talk to us, so we will go to try and reopen this conversation and try and appeal to his good sense and good judgement.
 
‘We’ll do that so we can prevent the health system from falling into a hole that I’m not sure we’ll be able to get ourselves out of.’
 
A date is yet to be set for that discussion to occur.
 
Log in below to join the conversation.

bulk billing payroll tax