Bonded Medical Program - Potential Rule Amendments

Overview

Amendments to the Health Insurance (Bonded Medical Program) Rule 2020

Overview

The Australian Government intends to amend Part VD of the Health Insurance Act 1973 to enhance the Bonded Medical Program (Program) through a bill introduced into Parliament on 4 September 2025. [Find out more]

Should Parliament pass these amendments, consequential amendments to the Health Insurance (Bonded Medical Program) Rule 2020 (Rule) will be required to give effect to some of the amendments in the bill. This consultation process explores potential additional changes to the Rule to improve the effectiveness of the Program.

While Program effectiveness must be the primary consideration regarding any suggested additional amendments to the Rule, changes that streamline Program administration and/or enhance participant experience will also be considered.

Program Objective

The Program was designed to address the doctor shortage in “regional, rural and remote areas and areas of workforce shortage”^[1].

It is part of a suite of measures that facilitates all Australians’ access to safe, high quality health services through the delivery of a highly skilled, supported and well distributed health workforce.

You can read more about the Program here.

Potential Rule Amendments

Removal of the fellowship requirement – potential benefits:

• enables doctors to complete all of their Return of Service Obligations (RoSO) immediately after becoming a medical practitioner (rather than having to wait until either they achieve fellowship, or 12 years have passed since they completed their medical course).
• enables doctors to complete RoSO before pursuing a specialisation which cannot be practiced outside a metropolitan area.
• aligns with evidence that early exposure to rural practice increases the likelihood of retention.

Simplified MM2-7 location eligibility – potential benefits:

• consistent with the Working Better for Medicare Review, which recommended that Distribution Priority Area (DPA) and District of Workforce Shortage (DWS) be removed from the Program as they have different objectives.
• simplifies location eligibility and improves clarity for participants navigating RoSO planning.

Enable former Bonded Medical Places (BMP) Scheme 2016-2019 participants to complete their RoSO on a pro rata part time basis (they currently can only complete their RoSO on a full time basis) – potential benefits:

• increases the likelihood of participants completing their RoSO by providing individual flexibility to better manage competing personal and professional demands. 
• provide greater consistency across bonded programs.

Options for reducing administrative burden on participants:

• Requiring participants to only report the location from which telehealth services are provided would reduce the administrative burden on participants who are currently required to provide evidence of both doctor and patient location eligibility for each service provided.
• Reducing Notifiable Events evidential requirements and ex ante RoSO Plan reporting to minimise the administrative burden on participants.

Why your views matter

Your feedback will inform final reform design and implementation planning.

Have your say

Please share your feedback by completing the questionnaire by 11:59 pm (AEDT) 10 November 2025.

Discussion Paper on Potential Bonded Medical Program Rule Amendments