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The ATO has provided the following advice in relation to Health Care Homes and the bundled payment:

The bundled payment will be made directly to the general practice or ACCHS monthly on a pro-rata, retrospective basis.

The practice will be responsible for appropriately distributing the bundled payment within the general practice or ACCHS.

Based on four broad general practice business scenarios, including a sole trader, partnership, associateship and large corporate practice, the Australian Taxation Office has provided the department with general advice that implementation of the Health Care Home model would not necessarily change the existing relationship the doctor has with the medical practice, and the Health Care Home model will not, of itself, create an employer/employee relationship. For example, if a GP’s engagement with a practice is as an independent contractor, then their participation in the Health Care Home program could also be on that basis.

The business scenarios on which this advice is based are broad and do not reflect all of the business structures and arrangements operating in Australia. Participating general practices and ACCHS should seek advice in relation to their situation and individual circumstances.

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