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Good for the Bush, Bad for Gaps

Tonight's Federal Budget has been good for rural health but bad for gaps, the Federal President of the Australian Medical Association, Dr David Brand, said tonight.

"The major expenditure on rural health, particularly on training young Australian doctors, could not be more welcome," Dr Brand said

"We're delighted that the AMA's proposal for a voluntary rural bonded scholarship scheme has been embraced by the Federal Government. That will mean more doctors for the bush with a sustainable and long-term program.

"But there's bad news for medical gaps with cuts to Medicare patient rebates of $46m in a full year mainly off specialist services.

"The Government's estimates of the savings in medical practice costs as the result of the removal of wholesale sales tax is double the estimate of our independent advisers and makes no allowance for any net increase in compliance costs.

"The AMA estimates that the cost of complying with the GST will add an average of at least 2% to the costs of running a medical practice.

"The real cut to Medicare rebates for specialist services means gaps will blow out. That will either have to come through an increase in health insurance premiums or from patients' pockets. Either way, patients are being punished.

"We welcome initiatives such as funding for food safety, early detection of bowel cancer and measures to improve the safety of fresh blood products.

"We are disappointed that there is nothing new to address the leading cause of preventable death and disease in this country - smoking - and little for alcohol.

"There is no major new funding for indigenous health despite the very poor health status of Aboriginals and Torres Strait Islanders. This is disheartening. The Government appears to be resting on its laurels despite the fact that there remains much to be done.

"The AMA will be analysing the Budget in detail over the next few hours and will issue a more detailed commentary in due course," Dr Brand said.

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