Co-payments will spark competition

With the AMA now working out its preferred co-pay model as an alternative to the government’s proposed $7 slug for GP visits and medical services, the end of free Medicare for most Australians seems all but assured.

Analysts at investment bank UBS speculate that in a scenario where a co-payment is part of the landscape, GPs will move to distinguish themselves in terms of price and could charge what the market will bear.

“Where a GP has a concession/non-concession patient mix
 of 50:50, it is untenable to not charge the

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