Announcement date
3 May 2026
Link to announcement
Major budget boost means Medicare Urgent Care Clinics here to stay | Prime Minister of Australia
Problem being addressed
Public hospital emergency departments (EDs) across Australia are facing growing pressure due to an increase in presentations which led to longer wait times in some regions. At the same time, recent declines in GP bulk billing rates (where the patient is not charged a co-payment) and GP services have made it more difficult for many patients to access affordable, timely, face-to-face GP care in the community which, in some areas, has caused patients to visit EDs for non-urgent care. According to the Australian Institute of Health and Welfare (AIHW), 46% of semi-urgent and 45% of non-urgent ED presentations were from individuals residing in areas classified in the two lowest socioeconomic status categories.
Proposal
Medicare Urgent Care Clinics (UCCs) opened from June 2023 to improve local access to urgent care and reduce low-acuity ED presentations, allowing EDs to focus on life-threatening cases. Current funding arrangements for 84 existing Medicare Urgent Care Clinics (UCCs) are due to expire from 30 June 2026. Funding for 3 existing clinics and 50 new clinics to be established in 2025-26 would expire on 30 June 2028. The preferred option in this IA proposes funding Medicare UCCs on an ongoing basis.
Note this IA was conducted in October 2025, with some data now superseded. Updated data includes:
- 90 Medicare UCCs operational with a further 27 clinics to be implemented, as at 8 May 2026 this is now 135 Medicare UCCs operational with a further 2 to open; and
- since the first clinic opened in June 2023 Medicare UCCs have serviced over 2 million presentations, as at 8 May 2026 this is now nearly 3 million presentations.
In addition, the Second Interim Evaluation was published in February 2026.
Assessed Impact Analysis outcome
Adequate
Assessment comments
The Impact Analysis (IA) provides a sufficient overview of the problem. To be considered ‘Good practice’ as per the Australian Government Guide to Policy Impact Analysis, the IA would have benefitted from further analysis of the costs and benefits and a more detailed evaluation plan.
Regulatory burden
The Department of Health, Disability and Ageing estimated that the average regulatory costs associated with funding agreements with public health networks and State and Territory Governments per year is $661,592.00 per year in total. The estimated average regulatory cost associated with a funding agreement for a single clinic per year is $4,829.
The Department of Health, Disability and Ageing estimated that there would be no regulatory impact on individuals or community organisations.