Funding models for app-enabled preventative primary care

Background

In 2025, following the work undertaken on the Australian Health Apps Assessment Revised Framework, the Australasian Institute of Digital Health (AIDH) received further funding from the Health Peak and Advisory Bodies Program from the Australian Government Department of Health, Disability and Ageing (DoHDA) to explore funding models for preventative health apps in primary care. The work aligned with the objectives of the National Preventive Health Strategy.

The Centre for the Digital Transformation of Health (CDTH) University of Melbourne was engaged as a consultant on this project to conduct research and cost modelling.

Why this project

In previous work around the adoption of a voluntary self-assessment framework, we identified that funding models for health professionals to enable the adoption of preventative health apps, particularly under Medicare, were either non-existent or limited.

The project’s assumption was that the right funding models would drive adoption for preventative Health Apps, which in turn would generate sector appetite for robust and consistent assessments of the apps.

The objective of this project was to present public funding options and cost modelling for the clinical activities that primary care practitioners undertake when supporting and monitoring consumers who use preventative health apps. Its purpose is to inform policy makers.

The activities in scope included onboarding, education, data review, interpretation, follow-up and coordination. The project did not include public subsidy or procurement of apps themselves – for either consumers or practitioners.

Our Objectives

Identify types of digital health apps that present a preventative health benefit

Provide options to remunerate fund or subsidise practitioners’ time and care activities associated with the clinically appropriate use of these solutions in primary care

Provide cost modelling of the financial impact of identified options

Project deliverables

This project was delivered in three phases, drawing on desktop research, stakeholder engagement with medical colleges, health practitioners, peak bodies and consumer representative organisations, and cost modelling. AIDH led this work in collaboration with external experts in research, survey design, and financial modelling, with input from an expert Advisory Committee.

Project Phase 1 – Environmental scan and evidence summary

In the first phase (July – November 2025), AIDH conducted desktop research on current funding models for digital health in Australia and overseas, and commissioned CDTH University of Melbourne to undertake an environmental scan and evidence summary of preventative health apps.

Findings were presented at a webinar in December 2025 and published in the Overview of preventative health apps and current funding arrangements – desktop research and environmental scan report.

Webinar 1 – Funding mechanisms for preventative health apps in primary care | December 2 2025

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Report 1 – Desktop research and environmental scan

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Project Phase 2 – Stakeholder engagement

The second phase (December 2025 – April 2026) focused on stakeholder engagement and on developing the information sheets and mini-course referred to above. Engagement activities included informal interviews and consultations, webinars, and a national survey.

Findings were presented at a webinar in March 2026 and published in the Stakeholder insights on funding options for remuneration of primary healthcare practitioners report.

Webinar 2 – Funding mechanisms for preventative health apps in primary care – Survey outcomes | March 12 2026

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Report 2 – Stakeholder insights on funding options

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Phase 3 – Development of options and cost modelling

In the third phase (April – June 2026), we developed funding model options and cost modelling for primary care clinical activities of health practitioners who support and monitor consumers using preventative health apps.

Drawing on the evidence review, stakeholder engagement, and survey findings, the project team selected two funding approaches for modelling:

1. Targeted MBS item payments: to provide patients benefits for defined activities such as set-up, review and follow-up, anchored to clinically appropriate monitoring/review patterns.

2. A monthly payment model: to support ongoing monitoring and engagement, with scope for a higher initial payment to reflect set-up time.

The modelling was applied to two representative use cases: a diabetes prevention and management app, and a smoking cessation app.

Findings are published in Report 3 – Cost effectiveness and financial impact modelling.

In addition, we published two information sheets on preventative apps for Consumers and for Health Professionals, and a free mini-course for health professionals.