I Asked ChatGPT How to Fix the Medicare Crisis in Australia
Australia’s Medicare system is in trouble. We’ve known this for a while.
Earlier this year, I wrote about the proposed 30% rebate increase. I called it what it is: a band-aid on a broken system. Since then, nothing’s changed. Bulk billing is vanishing, GPs are leaving, and clinics are closing. And politicians keep promising reviews, incentives, and pilots.
So, this time, I decided to ask an outsider. I asked ChatGPT.
To be clear, I don’t necessarily agree with everything it says. But the response was well-structured, data-driven, and free from political spin. That alone makes it worth sharing.
Here’s what I asked. And here’s what ChatGPT had to say.
The Diagnosis: “It’s Structural”
ChatGPT started by laying out the problem in five parts:
- Rebates haven’t kept up with inflation.
- General Practice is underfunded and undervalued.
- Medicare encourages short, episodic care—not continuity.
- The fee-for-service model is outdated.
- Care is fragmented between states, PHNs, and federal agencies.
None of this is new, but it’s the combination that matters. The whole system is out of sync with the way Australians now need healthcare. Chronic conditions are up, and mental health needs are rising. Patients need teams, time, and follow-up—not rushed 10-minute appointments.
What Might Fix It?
ChatGPT proposed a three-part solution. It’s not radical, but it’s clear. And it might just work—if anyone had the courage to try.
1. Rebuild General Practice
First, it argued for a proper rebuilding of general practice. That means long-term, sustainable funding—not just rebate tinkering.
It suggested blended payment models, not just fee-for-service but capitation, incentives for prevention, and team care payments.
It also backed multidisciplinary clinics, which would have allowed nurses, dietitians, physios, and mental health workers to work alongside GPs—funded as a team, not as fragments.
2. Rethink—or Remove—PHNs
Next, ChatGPT questioned the role of Primary Health Networks (PHNs). It noted that while PHNs were designed to improve coordination, many now operate as top-down bureaucracies. Detached from actual clinics.
That made me dig deeper. Two articles from The Medical Republic stood out.
One was blunt: “PHNs were never designed to fix Medicare. They’re middlemen without a mandate.”
→ Read it here
The other pointed out that most GPs have no idea what their PHN does—or who runs it.
→ Read it here
If PHNs are part of the solution, they need to change. They need to be accountable to local clinicians, transparent about spending, and focused on practical support—not vague strategy.
If that can’t happen, maybe it’s time to scrap them altogether.
3. Back Local Clinics—Not Just Hospitals
Finally, ChatGPT said this: “Most healthcare happens outside hospitals. The money should follow.”
Hospitals get billions, but GPs see the majority of patients. That’s where the funding should go: infrastructure grants, IT upgrades, incentives for teaching and rural service, and support for preventive care.
If we keep starving clinics while pouring money into emergency departments, the crisis will only deepen.
So Why Doesn’t It Happen?
That’s the real question.
ChatGPT doesn’t vote. It doesn’t fear elections. It doesn’t deal with lobby groups or media cycles.
Its ideas aren’t new. Many GPs have said the same for years. But reform never comes. Instead, we get pilot programs, media releases, and reviews. The system stays the same.
Real reform would take more than money. It would take a government willing to change the rules, shift power, and admit that parts of Medicare no longer work.
Final Thought: It Shouldn’t Take a Bot
It shouldn’t take a bot to point out the obvious. Yet here we are.
The Medicare system is a 1980s model trying to serve a 2025 population. Patients and GPs who use it and keep it going are being let down.
You don’t have to agree with everything ChatGPT said—I don’t—but it’s worth considering why its answers feel more honest than anything we’ve heard from Canberra lately.
Medicare can’t be saved with one-off rebates or minor tweaks. We need structure, vision, and a plan that puts general practice at the centre of care.
Until then, we’ll keep writing. And hoping someone in power starts listening.
My next article is about the Capitation method of funding and proposed solution. https://generalpracticetraining.com.au/capitation-model-is-de-capitation-of-medicare/
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