Incentives for early diabetes treatment

Australian GPs to get bonuses for keeping patients out of hospital

New moves in Australia will see GPs being given a lump sum each year (an average of Aus$1,200) to look after each diabetes patient who enrols voluntarily with them, in efforts to improve the management of chronic disease, and reduce health-care costs. This lump sum – costing Aus$436 million – will cover day-to-day GP costs and services such as advice on diet and foot care. In addition, the doctors will be paid a performance bonus if they keep the patients out of hospital (up to Aus$10,800 a year to GP practices, with part of the rationale being improved health outcomes and fewer hospitalisations for diabetes patients).

Although the government estimates the annual payment for diabetes care is about double the cost of treating the condition (complex cases cost an average of $761 and less complex cases $490), it is hoped that, over time, savings will be achieved through reduced hospital admissions. In 2007–8, about 237,000 hospital admissions for diabetes complications were made that could have been avoided through better management – 32 per cent of all avoidable hospital admissions.

The plan has not been universally welcomed, but the Australian General Practice Network said that patients would get better care under the proposals, and that it supports the voluntary enrolment of patients and flexible models of funding to ensure patients could see the right health-care provider at the appropriate time and at the appropriate cost.

Source: The Australian, 1 April 2010.

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