The impact of COVID-19 pandemic on the financial viability of Australian general practice

ABSTRACT

Background: Primary care practices faced many challenges responding to the COVID-19 pandemic including a downturn in patient attendances, the rapid adoption of telehealth and increased bulkbilling requirements. Aim(s) The aim of this research was to understand impacts of COVID-19 and public health response on practice financial viability. Method(s) An online survey of Australian general practices and community allied health practice (AHP) staff operating prior and during the pandemic was administered in April 2021. The survey explored adaptations and impacts on practice finances during early lockdown (March 2020) and a year into the pandemic (March 2021). Respondents were recruited through primary health networks, peak bodies and social media. Survey data were analysed using Stata 16. Finding(s) 72% (n=213) of valid responses were from general practices, including general practitioners (GPs) (n=142), practice managers (n=49) and practice nurses (n=19). 28% (n=84) of responses were from AHPs (most commonly psychologists n=22, chiropractors n=19). During early lockdown most respondents reported reductions in patient numbers (66%) and income (72%). One year into the pandemic most practices reported patient numbers had increased as had practice costs. 46% of respondents reported decreased practice profitability one year after pandemic onset. Reduced profitability was more commonly reported by GP respondents (56%) than AHPs providing mental health services (24%) or physical health services (31%). Implications Many primary care practices continue to suffer negative financial impacts one year after the pandemic onset. This has potential to decrease practice viability, affecting the sustainability of the primary care workforce, access to services and current models of primary care.