New compensation reforms to lead to earlier recoveries

3 minute read


Changes to NSW workers compensation should alleviate the administrative burden on GPs.


The NSW government has announced a major legislative amendment package to reform its workers’ compensation system, but the RACGP would like to see it go even further.

Among the changes was the inclusion of a $344 million workplace mental health package to provide psychological support services for people going through a claims process.

More than 50 new claims inspector positions were also announced, with the majority said to specialise in psychosocial injury.

The college reiterated its eagerness for reforms, especially in terms of alleviating both the administrative burden on GPs and psychosocial distress of patients.

The amendment will also introduce changes to compensation coverage regulations, particularly around the severity of conditions.

The severity of illness that is required for long-term payments has been bumped up from mild or moderate to moderate or severe.

According to RACGP NSW chair Dr Rebekah Hoffman, this will not impact people who cannot return to work but will instead prioritise the return to work for people with a lower-tier compensation claims.

This is where the mental health package will likely have the most impact – in being able to transition those under compensation back into employment.

“The evidence is that the sooner we make decisions and work with the patients to get them back into work, then we need to do that sooner rather than later, because there will be a timepoint where they no longer have income payments made,” Dr Rebekah Hoffman told The Medical Republic.

Dr Hoffman’s second key takeaway was that, with the new transitional system of payments, a patient’s level of severity would need to be measured much earlier to address the payment issue pre-emptively.

In terms of resources for GPs, there are RACGP-endorsed clinical guidelines for more efficient diagnosis of work-related mental health conditions.

According to the college, these have reflect how earlier returns to work can lead to an earlier recovery.

“I actually see this as a positive – I see anything that reduces red tape for GPs as a good thing,” Dr Hoffman said.

“Psychological workplace injury has definitely increased significantly Australia-wide, but in New South Wales [specifically] over the past three to five years.

“Having some really clear understanding of when a patient is going to be mild to moderate and need to reengage with the workforce, with versus when they’re going to need ongoing lifetime support.

“That clarity is going to be so important for GPs, and this legislation will provide that.

“For all of the GPs, both inside and outside of that sphere, we’re celebrating this for our patients.

“For the GPS that have extra focused psychological strategies or have done additional occupational medicine and might want to access this funding, then this will be very welcomed for them.”

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