Bulk billing concentration is the proportion of a medical or allied health practice’s revenue that is paid directly by Medicare under bulk billing arrangements (where the practitioner accepts the Medicare benefit as full payment, with no patient gap). High bulk billing concentration creates exposure to changes in Medicare benefit schedules and policy, and is scrutinised by buyers in healthcare M&A diligence.
Practices with diversified revenue (private fees, NDIS, workers’ compensation, DVA, employer contracts) typically command higher multiples than practices reliant on bulk billing alone.