Questions and Answers

Frequently Asked Questions (FAQs) for the Modernising Health and Aged Care Payments Services Program (the Program).

Page last updated: 25 July 2017

What is the Program?

The Government is replacing the IT systems supporting health, aged care and related veterans’ payments with a new digital payments platform, based on existing commercial technology.

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

The Government is approaching the market via a two-stage Request for Proposals process, commencing with a Request for Information (RFI) released on 6 March 2017. This will be followed by a procurement phase, for an innovative, cost effective, end to end digital health and aged care payments solution, based on existing commercial technology.

To inform the system design the Government is undertaking extensive consultation with health and aged care providers, and sector stakeholders.

When complete the new system is expected to deliver an integrated, citizen-centric digital claims and payments service that is seamless, flexible and sustainable.

Why is the Government replacing the digital payments IT system?

Each year the Commonwealth makes more than 600 million payments totalling around $50 billion dollars for health, aged care and related veterans’ health services.

These payments need to be underpinned by modern, reliable and secure technology.

Australia’s existing health and aged care payments systems are 30-years-old, are based on obsolete technology, are expensive to maintain, rely on a high level of manual processing and are reaching their end of life.

The new system will support the Australian Government continuing to own, operate and deliver reliable and accurate Medicare, the Pharmaceutical Benefits Scheme, aged care and related veterans’ health service payments.

What is happening and when?

The Government is replacing the IT systems supporting health, aged care and related veterans’ payments.

The Government will approach the market in early 2017 via a two-stage Request for Proposals process, commencing with a Request for Information (RFI), released on 6 March 2017. The RFI closed on 4 April 2017. This will be followed by a procurement phase, for an innovative, cost effective, end to end digital health and aged care digital payments platform, based on existing commercial technology.

In advance of the procurement phase, we are continuing to engage with the market to provide interested parties with more information about the Program’s progress.

The implementation of a new health and aged care digital payments platform is expected to take a number of years.

The design of the new digital payments platform is expected to be undertaken by end of 2017, followed by implementation with a view to demonstrate progress by early 2019.

What was the purpose of the RFI

The purpose of the RFI was to seek information on how the digital payments platform should be designed and delivered and to understand the capabilities that exist in the market to deliver it.

The information received in the RFI stage is expected to inform the development of the Commonwealth’s requirements for the next phase.

When will the new system be active?

The implementation of a new health and aged care digital payments platform is expected to take a number of years.

The design of the new digital payments platform is expected to be undertaken by end of 2017, followed by implementation with a view to demonstrate progress by early 2019.

Enquiries

MACPenquiries@health.gov.au