Why MBS Optimisation Isn’t Just About Better Billing

Back to Our thinking

The Medicare Benefits Schedule (MBS) remains one of the most important funding mechanisms in Australian healthcare, supporting access to a wide range of primary healthcare, specialist, diagnostic and other health services. It is also constantly changing. For health service providers, this means it is worth regularly reviewing whether they are making full and appropriate use of available MBS funding to support better access, better care and improved sustainability.

Many organisations approach MBS optimisation by asking a simple question: “Which item numbers are we missing?”

In our experience, that’s the wrong place to start.

The greatest opportunities rarely come from teaching clinicians to bill differently. They come from understanding how a practice or service operates, identifying patients who are missing out on planned care, and redesigning systems so that appropriate care is delivered consistently and claimed compliantly.

What Is MBS Optimisation?

MBS optimisation involves more than identifying opportunities to improve billing accuracy. It requires healthcare organisations to understand Medicare requirements, service delivery models, clinical workflows, and the broader financial factors that influence sustainability. A strategic approach can help organisations use available resources more effectively while keeping patient care at the centre.

How Can Healthcare Organisations Improve Billing Patterns?

Improving billing patterns is not simply about increasing the number of claims. It involves reviewing how clinical activity, documentation, workflows and MBS requirements work together. Improve billing patterns by identifying missed opportunities, inconsistent claiming processes and documentation gaps while maintaining appropriate Medicare compliance. For Larter, the aim is to connect better billing with better service delivery, rather than treating revenue as a standalone objective.

Looking beyond the billing report

At Larter, our work begins with understanding the service as a whole. Under appropriate confidentiality and data-sharing arrangements, we may analyse clinical software, appointment books, billing reports, practice management systems and population health tools such as POLAR and PenCAT. Where appropriate, we also undertake structured database searches to identify cohorts who may benefit from additional planned care.

This allows us to identify patients who may be overdue for chronic disease management, preventive health activities, health assessments, mental health follow-up, medication reviews or other evidence-based care. More importantly, it helps organisations understand why those opportunities are being missed.

Often the barriers are operational rather than financial. Recall systems may be inconsistent. Appointment books may not support planned care. Documentation may not align with claiming requirements. Nurses may not be working to their full scope, or administrative processes may prevent eligible patients from being identified.

How Does MBS Optimisation Support Clinic Management?

Effective clinic management connects financial processes with the day-to-day systems that support patient care. Appointment scheduling, recalls, clinical documentation, workforce roles, reporting and billing processes can all influence whether appropriate MBS-supported care is identified and delivered. Reviewing these processes together can help practices reduce administrative gaps, improve workflow consistency and create a more reliable approach to Medicare claiming. Larter Consulting uses this broader operational perspective to identify practical improvements that support both healthcare delivery and financial sustainability.

Sustainable optimisation requires system change

True MBS optimisation is about creating systems that support better patient care while strengthening financial sustainability.

Across projects with community health services, Primary Health Networks, rural practices and collaborative care models, we’ve consistently found that sustainable improvement comes from combining:

  • Strong clinical governance
  • Effective recall and reminder systems
  • Disciplined appointment book management
  • Nurse-led chronic disease and preventive care
  • Reliable practice data and reporting
  • Compliant documentation and billing processes
  • Regular performance monitoring

When these foundations are in place, organisations often improve both patient outcomes and financial performance without increasing unnecessary activity.

Lessons from the field

Our work has included supporting remote general practices in the Northern Territory, reviewing community health general practice sustainability across urban and rural Victoria, examining a public health service operating throughout Queensland, and analysing collaborative rural service models in Western NSW.

Although each project is different, the findings are remarkably consistent. Organisations achieve the best results when they move beyond isolated billing education and instead develop an integrated improvement strategy that connects clinical care, operational workflows, workforce design and financial sustainability.

Connecting MBS Optimisation With Healthcare Sustainability

Effective MBS processes can contribute to the financial sustainability of healthcare services when they are aligned with appropriate service planning and operational practices. Reviewing billing patterns, workflows, and service models can help organisations identify opportunities for improvement while supporting the ongoing delivery of high-quality healthcare.

In many cases, this means identifying practical “quick wins” while also developing a staged implementation roadmap over the following one to three years.

How Can MBS Optimisation Support Primary Care Access?

Primary care access optimisation should consider more than the financial performance of a healthcare service. Reviewing appointment capacity, workforce utilisation, recall systems, planned care and patient cohorts can help organisations identify where existing resources may support better access. Appropriate MBS processes can contribute to sustainable primary healthcare when they are aligned with clinical need, service capacity and compliant claiming. Larter can support organisations with primary healthcare services, operational improvement and service planning that connect financial sustainability with better access to care.

Using Data to Improve Healthcare Service Delivery

MBS data can provide valuable insights into how healthcare services are being delivered and where operational improvements may be possible. Combining billing data with stakeholder perspectives and service evaluation can help organisations make evidence-based decisions that strengthen efficiency, sustainability, and patient outcomes.

Conclusion

MBS optimisation is about more than improving billing it can support better decision-making, operational efficiency, and the long-term sustainability of healthcare services. By combining MBS data with strategic planning, stakeholder insights, and evaluation, healthcare organisations can identify practical opportunities to strengthen service delivery while maintaining a focus on patient outcomes.

Frequently Asked Questions

It can, Reviewing service and patient data may help identify cohorts who could benefit from appropriate planned care, such as preventive health activities, chronic disease management or follow-up. Any resulting changes should remain clinically appropriate and consistent with relevant Medicare requirements.

Yes, Rural and remote services may face distinctive workforce, access, funding and operational challenges. Reviewing MBS activity alongside local service capacity and community needs can help organisations identify practical opportunities to strengthen sustainable primary healthcare delivery.

MBS optimisation is the process of improving how healthcare organisations understand and use Medicare Benefits Schedule requirements to support accurate billing, efficient service delivery, and financial sustainability.

MBS optimisation can help healthcare organisations improve billing processes, identify operational opportunities, and support the financial sustainability of healthcare services.

No. Effective MBS optimisation can involve service planning, workflow improvements, data analysis, compliance, and understanding how billing practices interact with broader healthcare delivery.

MBS data can provide insights into service utilisation, billing patterns, and healthcare activity, helping organisations identify trends and inform planning and improvement decisions.

MBS optimisation can help primary care organisations strengthen operational processes and financial sustainability, allowing them to focus resources on delivering accessible and effective healthcare services.