Informed financial consent:

Resources and guidance for GPs

Informed financial consent:

Resources and guidance for GPs

Running a practice > Practice resources > General practice guides > Informed financial consent
Last updated 7 July 2026

What is informed financial consent?

Informed financial consent involves providing patients with clear, timely information about the cost of care before treatment, enabling them to decide whether to proceed. It is a core expectation in general practice, particularly as cost pressures increase and patients are increasingly encountering a range of billing models across the healthcare system. Cost estimates are based on the best available information and may change depending on clinical needs, with patients informed of any updates as soon as practicable.

Specialist general practitioners (GPs) must declare if they have a financial interest attached to any specialist referrals, facilities, or external services.

Why is this important?

A key principle of informed financial consent is transparency. A patient has the right to make informed decisions about their medical treatments, procedures, referrals, and their health, and should be informed of all consultation fees and any additional costs they will or may incur before treatment. Providing information upfront about costs helps patients make informed decisions about their healthcare and reduces unexpected costs. This includes, where appropriate, advising patients that referred services, such as specialist consultations, diagnostic imaging, pathology, and allied health services, may involve additional costs and encouraging them to confirm fees directly with the provider.

Informed financial consent is not a one-off conversation and should be revisited where a patient's treatment plan, referral pathway, or expected costs change.

What does the RACGP Standards for general practices (5th edition) say?

Under the RACGP Standards for general practices (5th edition) Core Standard 1, practices are expected to provide patients with clear, timely information about the costs of care to support informed decision-making. The requirements under Criterion 1.5 A and Criterion 1.5 B reinforce the importance of transparent billing practices and proactive cost communication, enabling general practices to sustainably recover the true cost of care while maintaining patient trust and supporting informed financial consent.

Costs associated with care initiated by the practice

 

Criterion 1.5 A  Our patients are informed about out-of-pocket costs for healthcare they receive from our practice

 

Criterion 1.5 B Our patients are informed that there are potential out-of-pocket costs for referred services.

What does it mean for patients?

Medicare rebates often do not reflect the true cost of care, requiring practices to charge patients gap fees. Historically, rising practice costs and relatively low Medicare rebates have driven many practices to adopt mixed or private billing models. This heightens the need for clear, upfront communication with patients about fees before a consultation or service. The RACGP supports all members, irrespective of their billing policy, and has strongly advocated for GP autonomy.

Patients should also be informed when a consultation, treatment, procedure, report, form, or other service is not eligible for a Medicare rebate. Clear communication about services that attract a private fee supports informed decision-making and helps patients understand any expected out-of-pocket costs before proceeding.

Billing approach

Patients should be informed of the practice billing approach (eg bulk billing, private billing or mixed billing), including when different fees may apply for longer consultations or specific services. Practices should clearly communicate whether fees differ between face-to-face and telehealth consultations.

Patients should also be advised that consultation fees may vary depending on the complexity of care provided, the time required, and any additional services delivered during the consultation.

Where applicable, practices should clearly communicate any billing policies relating to concession card holders, pensioners, children, or other patient groups.

Transparent billing is essential to business viability as it enables practices to sustainably fund the delivery of quality care over time. It reduces the risk of indirect costs associated with complaints, disputes, and regulatory issues, while also minimising confusion and administrative burden for both patients and practice teams. Clear, upfront communication of the billing approach supports a more positive patient experience and strengthens trust.

To support this, practices should make billing information readily accessible, including on their website, in the practice and through online booking platforms.

Tips on how to discuss informed financial consent with patients

  • Consider talking to patients about financial costs early by advising them on arrival at reception or prior to the patient coming into the clinic.

Option: “Your full appointment fee is paid at the time of your visit. Medicare will return a portion to you, so you only pay the difference. Please ask our staff if you need help with your Medicare claim.”

  • Introduce the topic by using pre-appointment communication such as SMS and email or providing information to patients as they book their appointment over the phone or online.

Option: “Your full appointment fee will be charged on the day. Medicare will send a portion of the appointment fee back to you.”

Option: “We charge the full fee for your visit. Medicare will then refund part of this amount to you. You only pay the gap.”

  • Where exact costs cannot be determined in advance, patients should be advised of the factors that may influence the final cost.
  • Where a service is not eligible for a Medicare rebate, patients should be informed of this before the service is provided and advised of any associated fees.

Option: “This service is not covered by Medicare, so a private fee will apply. The cost will be

$XX. Please let us know if you have any questions before proceeding.”

  • If there is a change in the patient’s care or the expected cost, this should be discussed with the patient as soon as practicable.
  • Patients should be encouraged to ask questions about fees and know who to contact within the practice for clarification.
  • Consider displaying billing information on the practice website, online booking platform, or along with appointment reminders.
  • Where costs are provided as an estimate, patients should be advised that the final fee may vary if additional clinical services are required.
  • Consider using posters in reception and waiting areas to advise patients about fees prior to their consultation.
  • Private billing practices may consider providing a clear breakdown of fees where possible. Doing so can support upfront communication of out-of-pocket costs, minimise confusion or unexpected charges, and strengthen trust and transparency in the patient–provider relationship.
  • Try to avoid the use of terms such as “rebate” or “item number” without explanation and definition of what they mean. Where possible, use plain and simple language.

Option: “We’ll need to charge you the full fee for your appointment, but Medicare will refund part of it. So, you’ll only end up paying the gap between our fee and what Medicare covers.”

  • Practices may consider documenting when informed financial consent discussions occur, particularly where fees are higher or more complex.
  • Practices should take reasonable steps to support patients in understanding cost information, including patients with language, communication, or health literacy needs.

Additional resources for GPs