Health · Healthcare & Policy · 4 hrs ago
Rural councils spend millions to keep local GPs
Rural councils are paying to keep local GPs as small communities struggle to attract and retain doctors.
In Narembeen, 280 kilometres east of Perth, the shire spends $370,000 a year on the medical practice, a house and a car for its doctor.
That cost takes 16 per cent of the shire’s annual rates income, but losing the GP would mean a 120-kilometre round trip to the nearest doctor.
A report using information from 30 councils found that seven councils spend about $1.7 million a year to attract and retain GPs.
It says residents effectively pay for rural medical care through the Medicare levy, consultation fees and council rates.
In Kalbarri, where the only GP closed in June, a community group raised more than $70,000 to set up a not-for-profit bulk-billing clinic, and the clinic tender is expected to be awarded in November.
In Donnybrook, residents have signed a petition to keep one of the town’s two remaining practices, whose lease expires this year.
Seven local governments collectively spend about $1.7 million a year to attract and retain GPs, according to a report commissioned by the councils.
The report drew on information from 30 councils across Australia.
In Narembeen, Western Australia, the shire pays a medical practice $370,000 a year, including a surgery, car and house.
The Shire of Narembeen says the arrangement is financially unsustainable, but losing the GP would leave residents facing a 120-kilometre round trip to the nearest doctor.
A community group in Kalbarri has proposed a not-for-profit, bulk-billing clinic as an alternative to council support for private GP businesses.
- Who
- Seven local governments and rural councils are spending money to attract and retain GPs. The report was commissioned by seven councils.
- What
- A report says the seven councils collectively spend about $1.7 million each year to attract and retain a GP.
- When
- The article was published on October 26, 2026. The report is described as recent.
- Where
- Rural communities across Australia, including Narembeen, Kalbarri and Donnybrook in Western Australia.
- Why
- Councils are trying to keep local GP services available amid challenges attracting and retaining doctors.
This story does not have two clearly opposing sides.
Donnybrook Medical Services began leasing its building from the Shire of Donnybrook-Balingup.
Kalbarri's only GP closed, leaving more than 1,500 people facing a two-hour round trip to see a doctor.
Kalbarri residents rallied for the doctor service.
The tender for the Kalbarri clinic is expected to be awarded at the next Northampton Shire meeting.
- Annual spending
- About $1.7 million across seven councils
- Report scope
- Information from 30 councils across Australia
- Narembeen payment
- $370,000 a year, including a surgery, car and house
- Kalbarri fundraising
- More than $70,000
- Donnybrook petition
- More than 400 signatures
What people are saying
One of our top priorities is a doctor in town, so we will keep providing that
But all the other sort of things we provide for our community, they'll all start falling off.
Any money we made would come back to the community, it doesn't go into any individual pockets.
We believe at the end of 12 months we will be well and truly profitable