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HealthLink retracts subscription threat over GP outrage

Australia’s largest medical messaging service has agreed not to charge GPs to use its referral service in a quiet about-face, caving in to complaints it unfairly targeted doctors who were obligated to use its product.

GPs are relieved HealthLink has backed away from its plan to slug them up to $1000 a year.
GPs are relieved HealthLink has backed away from its plan to slug them up to $1000 a year.

Australia’s largest medical messaging service has agreed not to charge GPs to use its referral service in a quiet about-face, caving in to complaints it unfairly targeted doctors who were obligated to use its product.

The Royal Australian College of General Practitioners announced on Thursday that it had reached an agreement with medical messaging service HealthLink following reporting in The Australian that the private company intended to charge clinics anywhere from $252 to $1000 annually, despite its software being integrated into the federally run service My Aged Care and numerous state referral systems.

HealthLink had secured a user base comprising 90 per cent of GPs, according to its data, before announcing a subscription model set to take effect from February 1.

“After meeting with the RACGP, I’m pleased that HealthLink have offered to pause any changes and consult with us and their clients on a solution,” RACGP president Michael Wright said.

“After decades of underfunding of Medicare, what we really don’t need is unexpected addi­tional costs. 

“Digital health initiatives are critical for general practice and helping to improve the health of Australians, but GPs need support for universal uptake.

“And these systems should be interoperable.”

When previously contacted by this masthead, spokespeople for several state governments said GP funding and oversight were federal responsibilities and indicated affected state-run ser­vices had analog alternatives for GPs who could not bear the additional cost, while a federal government spokesperson gave general remarks on the Albanese government’s commitment to digital health.

HealthLink told users of the backdown in an email. “We’ve heard the concerns from our GPs around the subscription model,” HealthLink managing director David Young said.

“Following this announcement of our intent we have paused the rollout of this new model while we explore all options and undergo a period of consultation over the coming months with stakeholders.

“We’re committed to open communication and will provide updates once the consultation period ends, and we are clear on next steps.”

Most of HealthLink’s revenue comes from fees paid by specialist providers for more efficient referrals, namely radiology and pathology firms, as well as services it provides to public hospitals in NSW, South Australia, Western Australia and sections of Victoria.

It also is paid for developing digital “smart forms” for state and federal agencies.

HealthLink has agreed to consult with the RACGP should it ever consider new fees.

Under the scrapped subscription plan it would have charged practices with one to three GPs $252 a year, which would rise to $600 for those with four to 10 GPs and $1000 for 11 to 20 GPs. Larger practices would be asked to negotiate a price structure.

It is integrated into WA’s Central Referral Service and the NSW Health electronic referral management system. In 2022, Transport for NSW opted to stop using physical Fitness to Drive medical forms in favour of digital forms through HealthLink.

The secure messaging provider said it was still committed to charging GPs, though at an indefinite time and price.

“Every day, we send millions of important medical communications all over Australasia. That’s why we’re committed to investing in the highest quality data-protection technology that protects doctors and patients,” Mr Young said.

“To continue to be sustainable and provide our high-quality service, we’re seeking to introduce a robust contract and subscription model for all GP practices. This model will include all of our premium service offerings, such as comprehensive message inclusions and validation, provider directory access, SmartForms access to key national and state referral pathways and round-the-clock support.”

HealthLink used the acquisition of its main competitor Argus, a subsidiary of Telstra Health, to justify its new fees, telling one GP it was “harmonising subscriptions across all practice types”.

“We understand this is a change, but to be able to continue to provide the HealthLink messaging solution … has meant introducing a fee for practices,” HealthLink said in a previous memo. “We have attempted to keep this charge very modest.”

“We will be harmonising our subscription model for general practice … to ensure it is cost effective and scalable.”

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James Dowling
James DowlingScience and Health Reporter

James Dowling is a reporter in The Australian’s Sydney bureau. As an intern at The Age he was nominated for a Quill award for News Reporting in Writing for his coverage of the REDcycle recycling scheme. When covering health he writes on medical innovations and industry.

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Original URL: https://www.theaustralian.com.au/health/healthlink-retracts-subscription-threat-over-gp-outrage/news-story/8bfa6128dcdd02996aa8d5428794ca14