The rumour mill has been running hot over the past few months as Medicare announced late last year that there would be a scaling down of PIP payments to practices as part of its overhaul of the Australian health care system. In May 2010, the PIP news update featured details of changes to the program which included:

• The gradual removal of After-Hours incentives beginning in July 2011
• An increase in the percentage of patients screened for the Cervical Screening incentive beginning in May 2011
• An increase in the value of payments for the Aged Care Access Incentive that began in July 2010
• The removal of the Diabetes Incentive from July 2012
• The removal of the Practice Nurse incentive to be replaced by a new funding program from January 2012

Whilst, for some practices, this was received positively many others saw this as a potential dent in their practice income and a deterrent to maintaining their participation in the program.

There are two important messages which I need to communicate as a result of this news.

1. Medicare published in February 2011 an update which outlines that the After-Hours and Diabetes Incentives will be continued for the foreseeable future.
2. The Diabetes Incentive is currently indefinite whilst the After-Hours Incentives are scheduled to end in July 2013.