The Federal Government's $345 million scheme aims to improve the appropriate use of medications, including antipsychotics.
The decision followed a campaign by doctor groups warning of the potential for reduced access to care.
It says it is a 'simplistic solution' that fails to account for the broader problems in aged care.
The RACGP says the continued reliance on paper-based systems is one reason for the struggle to attract GPs.
Experts advise tracking medication to prevent misadventures in polypharmacy, but it is only utilised by 3% of facilities.
GPs will not be banned from initiating antipsychotics.
However, the royal commission wants GPs to be funded through a capitation model
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