Research reports

Review of Finance Models of Primary Care

Rates of chronic disease and patients suffering more than one complicated illness (multimorbidity) are driving up the cost of providing health care in Australia.

To alleviate these rising costs, recommendations from The National Commission of Audit Phase 1 Report in 2014 included increasing the role private health insurers play in chronic disease management in primary health care settings.

In response, Peoplecare commissioned an investigation, led by Professor Andrew Bonney, the Roberta Williams Chair of General Practice at the University of Wollongong’s Graduate School of Medicine, of successful international models that integrate cost-effective care across different health services.

The report proposes two models: a bundled payment system that makes it possible for different elements of care for specific chronic diseases to be purchased, delivered and billed as a single product or service; or the implementation of a patient centred medical home (PCMH) model, which requires changes to the way that everyday general practices are run.

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