Modernising Health and Aged Care Payments Services Program

On 19 October 2016, the Government announced it will replace the IT system to deliver reliable and accurate health, aged care and veterans payments.

Page last updated: 25 July 2017

What is the Program?

The Modernising Health and Aged Care Payments Services Program (the Program) aims to deliver a new Digital Payments Platform that supports a digital-first (or digitally enabled) service delivery business model and simpler, faster, easier services for users.

The Government will continue to own, operate and deliver Medicare, the Pharmaceutical Benefits Scheme, aged care and related veterans’ payments in the future, and is seeking to implement a new digital payments platform that meets the following objectives:

  • supports contemporary, best practice health, aged care and related veterans’ payment services now and into the future,
  • supports a seamless experience for users of government services,
  • supports the rapid implementation of new programs and policies, including any new, efficient, citizen- centric health and aged care models,
  • uses innovation to support continuous improvement in claiming and payments services, in line with the Commonwealth’s Digital Service Standard,
  • supports streamlined, high integrity, secure service delivery, minimising manual touch points,
  • delivers leading practice data capture and analytic capability, and
  • meets all relevant legislative, regulatory and policy requirements, including privacy, cybersecurity and data law, including that it ensures security capabilities are best practice and all security requirements are met, both within and between each service layer.

The Program is expected to be completed over several years and comprise multiple phases.

What has happened so far?

A cross-government team has been established to manage the Program. This team is led by the Department of Health and supported by:

  • the Department of Human Services,
  • the Department of Veterans’ Affairs, and
  • the Digital Transformation Agency.

To inform the system design, the Government has undertaken extensive consultation with health and aged care providers, and sector stakeholders. This includes consulting widely across Government and with external bodies representing interested stakeholders and system users.

On 11-12 January 2017, market briefings were held to provide interested parties with more information about the process the Government intends to conduct.

Request for Information

On 6 March 2017, the Request for Information (RFI) was released. The RFI was designed to obtain information on:

  • how the new Digital Payments Platform should be designed and delivered,
  • the capabilities that exist in the market to deliver it, and
  • potential procurement approaches.

Submissions were due by Tuesday 4 April 2017 (Australian Capital Territory Local Time).

Information on the RFI is available at the AusTender website.

Market Update

On 25 July 2017, a market update was provided to keep interested parties informed about the Program’s progress.

Further information on the market update is available on the AusTender website.

What happens next?

The Program will release a high level procurement plan later this year with information on scope and timelines for future approaches to market for services and components to support the long term solution.

Discovery Information will be published iteratively and will cover both the current and future state of health and aged care payment delivery.

The Program would like to engage further with the market (that would supply the services and components to support this Program) to discuss learnings and gather further information in August 2017.

Further information is available in the July 2017 market update on the Austender website.


Frequently asked Questions

6 March 2017 RFI - Seeking advice on new IT payments system
19 October 2016 Digital payments IT system replacement media release