Health seeks new IT to process $50 bil in annual payments

By March, 2017 Federal, ICT

The Department of Health is seeking advice on building a new ICT payment system to replace 'obsolete' technology to ensure people keep receiving money.
The federal government has announced that it wants a fresh overhaul on its current payment systems supporting health, aged care and related veterans’ payments.

In a pitch that will make the ICT industry pay attention, the Department of Health has issued a Request for Information (RFI) to seek advice on how a new payment system should be designed and delivered.

Whatever results from this collaboration between business and government, it will replace current systems that the government says have ‘evolved’ over 30 years and are based on ‘obsolete’ technology.

In a thinly veiled admission that the Department of Health has been left behind on these payment systems, it said “just as Australian families have upgraded their computers since the 1980s, the time has come for the Government’s health payments systems to do the same”.

When complete, the new system will support the Australian Government continuing to own, operate and deliver Medicare, the Pharmaceutical Benefits Scheme, aged care and related veterans payments.

Each year the government makes more than 600 million payments worth approximately $50 billion through the IT systems in support of health and aged care services.

Examples include Medicare Benefits Schedule payments for bulkbilled or subsidised treatment by health professionals such as doctors, specialists, optometrists, and in specific circumstances, dentists, and other allied health practitioners.

It also includes payments under the Pharmaceutical Benefits Scheme and Ageing and Aged Care Programs.

The RFI provides an opportunity for respondents, including small and medium enterprises, to shape the future design of the new system which the Australian Government will continue to own, operate and deliver.

The RFI has been developed following consultation with health and aged care providers, sector stakeholders and users.

Responses to the RFI close on 4 April 2017, with a procurement phase for the new system expected to commence in the middle of 2017.

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