Inquiry into rural classification scheme

The strongly disputed new rural classification system is to be investigated as part of a Senate inquiry into the factors affecting health services in the bush.

The review which was given the go-ahead yesterday will help determine whether the Australian Standard Geographical Classification – Remoteness Areas (ASGC-RA) system is ensuring “appropriate distribution of funds” and “delivering intended outcomes”.

It follows ongoing criticism from rural GPs who insist the incentive scheme, introduced in July last year, is resulting in rural and remote areas losing doctors and struggling to attract them to the area, as it places many smaller rural towns in the same classification category as larger regional centres.

For example, doctors receive the same payments under the Rural Relocation Incentive Grant scheme whether they practice in the rural town of Werris Creek in NSW or in Hobart.

Dr Paul Mara, President of the Rural Doctors Association of Australia, who has been campaigning for a review of the scheme, said: “It is hard enough for small rural towns, often with not much more than a main street with a Chinese restaurant, a war memorial and a café, to attract doctors.

“They should never have been classed as equally or less regional than major coastal cities with their tourist attractions, schools, restaurants and large hospitals.”

Australian Greens Senator Rachel Siewert called for the inquiry in the Senate yesterday which will be referred to the Community Affairs References Committee (link).
The inquiry will also look at the effect of the introduction of Medicare Locals on the provision of medical services in rural areas.

A report is due back on April 30 next year.