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When and how to increase your fees in 2021

Medical Fee Index 2021

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

Your 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 2021 Fees AMA recommends an increase of 1.55%.

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.

In order to double-check your own fee schedule, all doctors should satisfy themselves as to fair and reasonable fee strutures, considering their own cost experience and the particular circumstances of indvidual cases and patients.  

Hoxton clients have their Practice Management Advisory Service to assist with developing Billing Strategies.


Hoxton MPM
Suite 6, 342-344 South Rd,
Hampton East, VIC 3188.
Phone: 03 8060 4277



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