Medicare changes to hit already-struggling rural doctors

Doctors say changes to the government's Medicare plan could force many already-struggling GPs to the wall, especially in rural areas.

The government has ditched its proposed $7 GP co-payment, replacing it with a $5 payment to be charged at the discretion of doctors to make up for a reduction in the rebate they will receive from Medicare.

Rural Doctors Association of Australia president Professor Dennis Pashen says the exemption from the payment for children and concession card holders is welcome.

But doctors are concerned the co-payment will deter rural people - many of whom are struggling with drought and a lack of cash flow - from seeking timely healthcare.

An indexation freeze on Medicare rebates would place further financial pressure on rural general practices, many of which were already struggling, Prof Pashen said.

The closure of rural GP services would have a flow-on effect to hospitals and make rural areas less attractive for medical students and junior doctors.

The association said it would work with the government on improving the policy.