Practice Nurse Incentive Program
The new funding model for the employment of practice nurses in general practice will commence on 1 January 2012. The Practice Nurse Incentive Program (PNIP) will fund $25,000 per GP full time equivalent. The streamlining of practice nurse funding will mean that the current practice nurse Medicare items and practice nurses incentive payment will be replaced by this new funding model.
The following nursing MBS items will no longer exist; Immunisation 10993; Wound Management 10996; Cervical Smear 10994,10995, 10998, 10999.
Summary of new practice nurse incentives
An eligible practice is able to receive up to 5 individual practice nurse incentive payments of $25,000.
1 x FTE GP (1000 SWPE) = 1 x Incentive payment
Maximum 5 Incentive Payments for 5 x FTE GP (5000 SWPE) = $125,000
Payment rates: - Registered Nurse = $ 25,000 p.a. Enrolled Nurse, AHW, AHP = $ 12,500 p.a.
Location Loadings apply: - Urban = n.a.; Inner regional = 20%; Outer Regional = 30%; Remote = 40%; Very Remote = 50%
AMS / ACCHO practice receive a 1.5 loading on their GP FTE.
Grandfathering payments will be made to cover for any loss of income due to the new funding model. This only applies if the PNIP payment is less than the total of the practice’s previous payments for practice nurse Medicare items and practice nurses incentive payment.
Refer to the Practice Nurse Incentive Program Guidelines for full details.
Planning and action
Practices are encouraged to start looking at the potential impact of this initiative on their current practice nursing budget for 2011/12 and to consider the potential opportunities presented by block funding rather than item number funding.
Medicare has provided a PNIP Incentive Payment Calculator - Ready Reckoner to assist practice to determine the amount of funding they will receive.
Budget Framework
Step 1: Calculate the total income
- Practice Nurse Incentive Payment
- Location Loading
- Include any nursing activity that generates income such as health assessments, care planning, diabetes and asthma outcomes, spirometry and ECGs, pre-employment medicals, insurance medicals
Step 2: Calculate the total expenditure
- Wages plus On costs (superannuation & Workcover)
- Backfill for leave
- Travel reimbursement
- Training & development
Step 3: Calculate Net outcome
Total Income – Total Expenditure = Net Outcome
It is crucial that practices understand the Net Outcome of this new incentive program on their practice nurse budget before making decisions about any changes to service delivery. The new funding policy provides practices with the opportunity to rethink how nursing services are provided within general practice.
