Here’s an update on a few of the issues AMA Victoria is working on for members, including:

• Change to the way TAC and WorkSafe pay for delivery of public health services- call for member feedback
• Mental Health and Wellbeing Locals- AMA Victoria submission.

Change to the way TAC and WorkSafe pay for delivery of public health services- call for member feedback

Last week, AMA Victoria wrote to members about upcoming changes to how compensable care in Victorian public hospitals will be funded. From 1 July 2026 (TAC) and 1 July 2027 (WorkSafe), funding for services currently billed separately by hospitals, doctors and diagnostic providers will move to a single bundled payment to each health service, which will then be responsible for paying all associated costs, including medical and diagnostic services.

The change will not affect services delivered in private settings. TAC and WorkSafe have said the reform is intended to improve efficiency and transparency, with overall funding levels to remain consistent.

The issue has attracted public attention, with AMA Victoria President Dr Simon Judkins quoted in The Age on 10 October. While noting the change could simplify processes, Dr Judkins cautioned that it may also prompt some surgeons to reconsider their public hospital work if remuneration is not managed fairly:

“Victoria has a great system of trauma care for victims of traffic and workplace accidents. Anything that threatens that is clearly going to be a concern.”

AMA Victoria continues to engage closely with TAC, WorkSafe and the Department of Health, all of whom have expressed interest in ongoing consultation through AMA Victoria’s WorkSafe/TAC Committee and other forums.

We want to hear from you. How could this change affect your public hospital work or billing arrangements? Member feedback will directly inform our ongoing discussions with government and the agencies.

Please contact Lewis Horton at [email protected] with your comments/feedback.

Mental Health and Wellbeing Locals - AMA Victoria submission

AMA Victoria has provided feedback to the Department of Health on the updated Mental Health and Wellbeing Locals Service Framework and Service Requirements for the new Hub-and-Spoke model.

Our submission welcomed the Department’s intent to clarify the role of the Locals and strengthen their connection with the broader mental health system. However, we noted that many doctors continue to find the role of the Locals unclear- particularly when and how to refer patients, what care they will receive, and how information will be communicated back. While the Framework aspires to integrated, collaborative care, this vision has yet to be consistently realised in practice.

The new Hub-and-Spoke model could extend reach and promote consistency, but risks adding complexity unless accountability, information flow and escalation pathways are clearly defined. Clinical governance and workforce sustainability also remain key concerns, given the Locals’ responsibility for patients with moderate to high-intensity needs within an already strained system.

Improved communication with the wider medical workforce is needed, as many GPs and hospital specialists remain uncertain about how the Locals operate. AMA Victoria has offered to assist the Department in supporting clearer engagement across the profession.

Finally, AMA Victoria emphasised the need for transparent evaluation and reporting. Consistent with the Royal Commission’s recommendations, publicly available data on the clinical, strategic, and cost-effectiveness of the Locals will be vital to building confidence in the model and ensuring it delivers genuinely integrated care- rather than adding further layers to an already fragmented system.