Maximising Practice Revenue Through Bulk Billing Incentives
For general practices across Australia, the expansion of bulk billing incentives represents a transformative opportunity to strengthen financial sustainability while delivering accessible healthcare. With major reforms coming into effect on 1 November 2025, opportunities abound—and with the right strategy, practices can significantly boost revenue while continuing to serve their communities.
The New Incentive Landscape
From 1 November 2025, the Australian Government is expanding bulk billing incentives to all Medicare-eligible patients, not just children and concession cardholders.
These changes include:
- Extended eligibility for bulk billing incentives to all Medicare-eligible patients.
- A Bulk Billing Practice Incentive Program (BBPIP) that provides a 12.5% bonus payment, calculated on all GP non-referred (NRA) MBS services, paid quarterly to practices that fully bulk bill every patient.
The Department of Health projects that 4,800 practices will join the BBPIP by the end of the forward estimates, leading to a 10.5% increase in bulk billing rates by 2028–29, and an additional 18 million bulk-billed services annually once the program is fully rolled out.
Financial Impact: More Revenue, Stronger Viability
A detailed analysis reveals that the combined effect of incentives dramatically alters the revenue equation:
- Metropolitan GP practices (MM1) performing full bulk billing could see total annual billings increase from $530,557 to $576,864, translating to an extra $7,653 in revenue and about $5,357 more in GP earnings.
- Rural practices (MM3-4)—thanks to higher remoteness loadings—stand to gain even more: total annual billings may rise from $619,788 to $654,023, yielding approximately $23,964 additional GP earnings.
These numbers aren’t hypothetical—they reflect a shift that makes full bulk billing not just viable, but potentially more profitable than mixed billing models driven by patient gap payments.
How Practices Can Maximise Benefits
1. Commit to Full Bulk Billing
The simplest route to fully capitalising on these incentives is to convert to a fully bulk-billing model. Doing so unlocks the 12.5% BBPIP loading and ensures every patient visit contributes to both Medicare benefits and incentive payments.
2. Track Revenue Streams
Carefully monitor how revenue splits between Medicare benefit, BBPIP incentives, and gap payments. Full bulk billing may yield higher total practice income, even without charging patients directly.
3. Reinvest in Practice Growth
Practices can reinvest additional earnings into expanding clinical hours, hiring allied health professionals, or improving infrastructure—enhancements that further drive patient engagement and efficiency.
4. Use Expert Guidance
Partnering with organisations like Alecto Australia can help practices model the financial implications of shifting to full bulk billing, forecast workforce requirements, and streamline the transition.
5. Review Contract Structures
As the incentives flow through, consider how income is distributed between the practice and GPs. This is not just about fairness—it’s about ensuring retention, morale, and long-term sustainability.
Strategic Insights from Industry Leaders
Within the consulting space, Monique Giron and Martina Stanley, both directors of Alecto Australia, have noted that these reforms change the revenue landscape in ways that many practice owners may not yet fully appreciate. Their observations suggest that the incentive system could make bulk billing financially competitive with, and in some cases more profitable than, gap-based models—particularly for high-volume practices in both metropolitan and rural areas.
This isn’t an argument for abandoning mixed billing across the board, but rather a reminder that every practice should re-run its numbers under the new rules.
Addressing Concerns & Looking Forward
While many practices and practitioners are enthusiastic, some concerns remain valid:
- Consultation time pressures — The current MBS structure still favours shorter appointments, and some worry that bulk billing incentives could unintentionally reinforce this trend.
- Operational costs — Practices in rural and remote areas may face higher staffing, facility, and equipment expenses that incentives alone cannot fully offset.
- Transition hurdles — Changing billing models can create temporary disruptions in patient flow, administrative processes, and GP contracts.
Still, the new framework offers an unprecedented opportunity to align patient access with practice viability.
Why Acting Early Matters
Practices that prepare now—by auditing financial performance, updating contracts, and engaging advisors—can hit the ground running once the incentives begin. Waiting too long could mean missing out on early benefits and losing competitive advantage in attracting patients and GPs.
Conclusion
By embracing the expanded bulk billing incentives and the BBPIP structure, practices have a clear path to elevating revenue, reinvesting in operations, and delivering broader access. With strategic advice from experts like Alecto Australia, and with insights from industry leaders such as Monique Giron and Martina Stanley, practices are better positioned to adapt quickly and make informed choices.
The numbers lean heavily in favour of bulk billing—not just ethically, but financially. For practice owners ready to align mission with margin, the opportunity is knocking.
