McKinsey scoops $20m from Medicare review

Consultants from McKinsey have scooped $20 million to help the Medicare review taskforce find savings for the health budget.

Medicare review taskforce chairman Bruce Robinson says the group’s work will continue into 2019. Picture: Christian Gilles

Consultants from McKinsey have been awarded $20 million in government contracts to help a Medicare review taskforce find savings to be reinvested in the health ­budget.

While the Medicare Benefits Schedule review has previously had the support of the sector, a delay in crucial recommendations around general practice is set to test the patience of lobby groups in the lead-up to the federal election.

The review arose from the failed GP co-payment talks and has been examining some 5700 MBS item numbers to ensure they are evidence-based, provide value-for-money and are used wisely. Its recommendations have already seen more than $400m redirected by the government.

The Australian has learned McKinsey — which also stood to make more than $30m helping to decide the fate of the Medicare payments system — has amassed contracts totalling $19.6m plus GST for the review.

A Health Department spokeswoman said McKinsey provided specialised program, administrative and secretariat support ser­vices for the review, which has 27 committees and has already produced 29 reports.

The 2017-18 budget allocated $44.2m over three years for the review, with expectations its clinical work would be completed by the end of this year.

However, department officials recently told a Senate budget estimates committee hearing that taskforce chairman Bruce Robinson had advised that “work is likely to slip into the early part of 2019”.

Greens leader Richard Di ­Natale criticised the officials for the delay, saying “excuse my cynicism, but there’s every chance we’re not going to get to it before the next election”.

Amid the delay, there have been leaks of draft proposals, but the state of general practice is ­considered fluid.

Health Minister Greg Hunt is in reform talks with the Australian Medical Association and Royal Australian College of General Practitioners, which want an increase in investment, while Bill Shorten is also being lobbied.

The federal Opposition Leader has declared that the upcoming election will be about the future of Medicare.

He has anointed candidate and former AMA president Brian Owler as “Mr Medicare”.