Care to share? New shared debt recovery scheme from medicare.

Medicare's Shared Debt Recovery Scheme (the Scheme) took effect from 1 July 2019 and applies in circumstances where the Department of Health conducts post-payment Medicare compliance audits. The Scheme was brought to life by the Health Legislation Amendment (Improved Medicare Compliance and Other Measures) Act 2018 (Cth), which amended the Health Insurance Act 1973 (Cth).

Prior to the implementation of the Scheme, individual medical practitioners were liable for all Medicare claiming, except in cases of fraud. This model was suitable for traditional single-doctor practices, but was becoming problematic in the multi-doctor practices, large corporate entities and hospitals which exist today. There were concerns that, where billing practices are centralised, some employers may influence billing to maximise the Medicare benefits paid, even if that involves incorrect billing. Where billing practices are delegated away from medical practitioners, a fairer option is to