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Health Budget 2009-2010

Rudd Government Confronts the Rural Health Challenge

The Australian Government is improving health workforce shortages in rural and remote areas with a package of reforms that includes ‘the more remote you go, the greater the reward’ incentives.

PDF printable of Rudd Government Confronts the Rural Health Challenge (PDF 53 KB)

12 May 2009

Rural and remote workforce shortages will be improved under a $134.4 million package announced today by the Minister for Health and Ageing.

The package responds to the Government’s audit of health workforce in rural and regional Australia that found that:

• the current supply of health professionals was not sufficient to meet the community’s needs; and
• the previous Government relied on an out-of-date classification system using population data from 1991.

This reform package retargets incentives to ensure that ‘the more remote you go, the greater the reward’ to encourage doctors to work in some of Australia’s most isolated rural and remote communities – and to help keep them there.

For example, under the new system, a doctor relocating from a major city to a regional centre will receive a $15,000 grant. A doctor relocating to a very remote area would receive $120,000.

Under reforms to be introduced by the Rudd Government, almost 500 communities around Australia will become eligible for rural incentive payments for the first time.

Retention payments will also be heavily geared to the level of remoteness. Many of the more than 260 doctors who practise in the most remote locations will potentially have their maximum retention incentives increased from $25,000 per year to $47,000 per year.

More than 2,400 rural doctors will now become eligible for the first time for grant payments to remain in rural and remote areas.

Additional reforms will ensure that:

• more than 3,600 overseas trained doctors with restrictions on where they can practise will be able to discharge their obligations sooner if they work in rural and remote communities;
• Under the HECS Reimbursement Scheme, the rate of reimbursement of HECS payments will be adjusted to give more credit according to the remoteness of the location;
• Locum relief will be available to doctors working in difficult locations with more than 400 locum placements planned to enable rural GPs to take a holiday or undertake further education and training; and
• More than 150 urban doctors can be up-skilled in exchange for undertaking four-week locum placements in rural and remote communities.

In contrast to the previous Government’s ad hoc, antiquated approach, the Rudd Government is introducing a new classification system which reflects how Australia’s population and demographic make-up has changed over time.

From 1 July 2009, the outdated and flawed Rural, Remote and Metropolitan Areas (RRMA) system will be replaced by the Australian Standard Geographical Classification – Remoteness Areas (ASGC-RA) system.

The ASGC-RA has been developed by the Australian Bureau of Statistics, uses 2006 Census data, and is widely used by Commonwealth and state agencies. Most importantly, moving to the ASGC-RA will improve incentives for attracting health services to areas of genuine need.

The new classification system will be phased in from July 2009.

The Rudd Government is also investing in three mental health programs specifically targeted to meet the needs of rural and remote communities:

• $6.7 million to extend the Mental Health Services in Rural and Remote areas Program;
• $5.2 million to extend mental health support for drought affected communities; and
• a total of $7.5 million, comprising $4.5 million in 2008-09 and $3 million in 2009-10 for additional psychological support for communities affected by the Victorian bushfires.

The Rudd Government will also invest immediately $13.9 million on 40 rural and regional projects.

Each of these projects aims to improve access to essential health infrastructure and equipment for rural and remote communities.

These announcements signal the Rudd Government’s ongoing determination to ensure people get appropriate and timely health care when and where they need it.

An announcement about the outcomes of Round Two of the National Rural and Remote Health Infrastructure Program will be made in the near future.

For all inquiries please contact the Minister's office – 02 6277 7220

Rural Communities to Benefit From Nation-Building Health Package

State	Location	Organisation	Project	Funding
NT	Alyangula, Groote Eylandt	Anindilyakwa Land Council	Build accommodation for junior doctors and medical students.	$496,000
Vic	Ararat	Ararat Medical Centre	Extension of existing building to include additional consulting rooms, waiting area, meeting rooms and teaching area.	$500,000
SA	Beachport	Wattle Range Council	Capital works to build a new medical centre.	$500,000
Vic	Beechworth	Beechworth Surgery	Replacement and upgrade of the computer system and hardware, in line with recommended standards.	$50,000
WA	Boddington	Shire of Boddington	Capital works to construct and fit out a new allied health medical centre.	$500,000
NSW	Bombala	Bombala Council	Capital works to construct a house in Bombala for use by a GP.	$260,000
WA	Broome	Kimberley Aboriginal Medical Services Council	Establish a multi-purpose clinic on the Dakas St Medical Centre site.	$500,000
Qld	Cairns	Cairns Private Hospital	Establish Interventional Cardiology services and ICU through necessary building works (funded by the hospital) and equipment purchase.	$131,632
Vic	Camperdown	Camperdown Clinic Trust	Undertake extensions to the current medical clinic through the addition of three consulting rooms, a training room and appropriate staff amenities. Also includes the purchase of appropriate clinical and diagnostic and procedural equipment.	$432,987
Qld	Charleville	Murweh Shire Council	Convert, refurbish and refit existing building into a private dental practice and oral health centre.	$398,200
Vic	Charlton	Charlton Medical	Refurbishment of medical practice facility and equipment to attract and maintain suitably qualified medical and nursing personnel, registrar and medical students.	$218,407
Qld	Chinchilla	Chinchilla Medical Practice	Replace ageing diagnostic imaging equipment with new up-to-date quality equipment.	$227,779
Vic	Cobram	Moira Shire Council	Capital works to construct a purpose-built facility to provide integrated primary care including medical, dental and health professional services to the region.	$500,000
SA	Cummins	District Council of Lower Eyre Peninsula	Capital works to extend an existing building to include additional consulting rooms, waiting area, meeting rooms and teaching area.	$130,000
NT	Dhalinbuy	Laynhapuy Homelands Association Inc	Build a facility in which health care can be delivered in a clinically and culturally appropriate manner.	$295,441
WA	Donnybrook	Shire of Donnybrook-Balingup	Capital works to construct a new medical facility that will cater for a general medical practice, pathology, specialised nurse treatment, allied health and the training of rural medical staff.	$500,000
NSW	Dubbo	Dubbo Private Hospital	Purchase urology and imaging equipment and develop a plan that can be implemented over time, which will benefit the people of Dubbo.	$155,205
NSW	Forbes	Forbes Shire Council	Capital works to construct a walk-in walk-out medical service in Forbes.	$500,000
NSW	Forbes	Joma Consulting Services Pty Ltd	Renovation of existing building and the construction of an annex building for the provision of professional consulting rooms.	$498,388
NSW	Gilgandra	Gilgandra Shire Council	Capital works to build a private GP clinic in the grounds of the Gilgandra MPS.	$240,000
NSW	Gunnedah	Barwon Division of General Practice Ltd	Design a one-stop integrated primary health care facility. The building will include capacity for training, retaining and developing medical and allied health services.	$500,000
Qld	Inglewood	Goondiwindi Regional Council	Capital works to establish a new medical centre.	$500,000
Vic	Inglewood	Loddon Shire Council	Capital works to construct accommodation to attract another GP to the area.	$390,000
WA	Kalgoorlie	Eastern Goldfields Medical Div of GP (Goldfields Esperance GP Network)	Purchase of a vehicle for the mobile medical team and provide early detection and treatment for people with diabetes.	$470,000
Vic	Kerang	Fitzroy Street Medical Clinic	Build and equip four new consulting rooms for practice use and training of medical students and GP registrars.	$261,990
Vic	Merino	Glenelg Shire Council	Capital works to enable the redevelopment of the Bush Nursing Centre.	$500,000
Vic	Murchison	Goulburn Valley Division of General Practice	Capital works to refurbish facilities, including an upgrade of the waiting and reception area and the records and consultation area.	$499,059
Vic	Nathalia	Nathalia Medical Clinic	Equip the new medical clinic with updated medical equipment that will remain part of the medical clinic.	$115,100
Qld	Nebo	Isaac Regional Council - Nebo Business Unit	Capital works to construct a new medical centre practice facility.	$454,545
WA	Northam	Central Wheatbelt Division of General Practice Ltd	Capital works to support counselling and Allied Health Services.	$500,000
Vic	Ouyen	Mallee Division of General Practice	Capital works to extend an existing building to include a dental sterilisation facility.	$57,272
SA	Padthway	Tatiara District Council	Capital works for an extension to the indoor sporting facility to include a new medical centre.	$86,292
Qld	Roma	Maranoa Medical Centre	Refurbishment to accommodate a new consulting room and the purchase of medical equipment.	$55,389
NSW	Rylstone	Mid-West Regional Council	Capital works to purchase, as appropriate, residential property in the area that would be used to attract and retain GPs and other health professionals.	$300,000
NSW	Scone	Upper Hunter Shire Council	Capital works to increase capacity of Scone Medical Practice to accommodate multidisciplinary health services, especially allied health services in the community.	$500,000
Tas	Scottsdale	Division of General Practice Northern Tasmania Inc	Capital works to construct a multidisciplinary primary care centre in the rural north eastern town of Scottsdale.	$500,000
SA	Tanunda	Tanunda Medical Centre	Refurbishment of building to accommodate a study area, meeting area, video-conferencing room and staff amenities.	$102,748
NSW	Taree	Intalink Therapy Solutions	Expand allied health services to include paediatric psychology, speech pathology, occupational therapy and physiotherapy.	$261,176
SA	Tumby Bay	District Council of Tumby Bay	Capital works to enhance the existing medical practice and allied health services that will increase the range of health services available through visiting specialists.	$500,000
NSW	Urbenville	Tenterfield Shire Council	Capital works to renovate and equip the existing Urbenville Medical Practice.	$295,455