Skip to content

When and How to Index your Fees in 2020

The AMA have published their annual Medical Fee Index

The AMA Medical Fees Index (MFI) is a weighted average of the cost and wage indices impacting the cost of practice for Australian doctors. It takes into consideration:

  1. Salaries and wages of staff employed
    • based on the ABS Wage Price Index
  2. Other practice costs (including medical defence premium costs)
    • based on ABS Consumer Price Index (CPI)
  3. Motor vehicle costs
    • based on Private Motoring Component of CPI

You fees need to increase to keep price with inflation

We recommend that medical practices routinely increase their fees at the same date every year. This ensures that patients and staff can plan for and expect regular small increases to keep pace with inflation. It makes sense to have these increases scheduled for the start of the claendar year (1st Janaury) or start of the financial year (1st July). Notification of this should be included in your financial consent forms for patients.

How much should you increase your fees by?

The AMA Medical Fees Index has been reporting since 1973 and recommended price increases have fluctuated over that time. In the low inflation envrionment seven years have been <3%.

For 2020 Fees AMA recommends an increase of 2.165%.

The next step is to get out the calculator and across the board increase every medical fee on your list by this amount, effective of January 1st.

AMA member have access to the Fee Escalation Table and calculator to fine tune these numbers for special circumstances.

CONTACT

Hoxton MPM
Suite 2.02,
116-118 Thames Street
Box Hill VIC 3128
Phone: 03 8060 4277

SUBSCRIBE

Subscribe to our Blog and stay up to date on all the latest news, insights and tips from Hoxton MPM.

Find out more about how you can streamline your medical practice with outsourced support.

Download our eBook, phone us on (03) 8060 4277 or book a meeting with one of our helpful consultants.

Subscribe to our Blog