🇦🇺Australia

Gap Fee Churn from Inadequate Payment Plans

1 verified sources

Definition

Only 12% of GPs can afford full bulk billing amid rising costs, leading to high gap fees that friction patient retention in collections processes.

Key Findings

  • Financial Impact: AUD 39 average gap fee per standard consultation; 2-5% revenue loss from patient churn
  • Frequency: Per non-bulk billed consultation; ongoing for mixed billing practices
  • Root Cause: Manual payment plan management unable to cover operational costs, resulting in higher out-of-pocket costs for patients

Why This Matters

The Pitch: Physicians in Australia lose 2-5% revenue to patient churn from $39 average gap fees and manual payment plans. Automated collections retain patients and accelerate cash flow.

Affected Stakeholders

GPs, Practice Managers, Receptionists

Deep Analysis (Premium)

Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

Rejected Claims from Mental Health Item Changes

AUD 350,000 average annual loss per practice from rejected claims and delayed reimbursements

Admin Overrun from BBPIP Compliance Updates

20-40 hours/month in admin time; opportunity loss of AUD 350,000/year for non-adopting practices

Illegal Additional Charges on Bulk Billed Services

AUD 5,000+ fines per violation (typical statutory penalty range)

Manual Documentation Delays

20-40 hours/month per GP at AUD 100/hour (AUD 2,400–4,800/month lost capacity)

Produktivitätsverlust durch manuelle PDMP/RTPM‑Abfragen und Dokumentation

Logic-based estimate: 5–10 hours of lost billable time per prescriber per month due to manual PDMP checks and documentation, equating to roughly AUD 1,000–3,000 per prescriber per month (assuming AUD 200–300 effective hourly revenue), or AUD 12,000–36,000 annually.

Manual Denial Management

10-20 hours/month at AUD 50/hour = AUD 6,000-12,000/year per practice

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