A payment to Lead Maternity Care midwives providing primary maternity care to contribute to the costs of being self-employed.
Business Contribution Payment for 2021/22
The Ministry of Health is making a payment to eligible lead maternity care (LMC) midwives for business costs as part of the Budget 2021/2022 Maternity Package announced by the Government in May 2021. This payment is called the Business Contribution payment (BC payment).
The Letter of Offer to eligible LMC midwives (excluding new graduates) was sent to each eligible LMC midwife at the email address held by the Ministry against their LMC midwife agreement to provide primary maternity services on 15 October 2021.
There will be two payment rounds of the 2021/22 BC payment for LMC midwives. For the payment round scheduled for 15 December 2021, you must accept the offer and send your response to [email protected] no later than 11.59pm on 15 November 2021 to be included in this payment round. The second payment round for LMC and new graduates is scheduled for June 2022. Information about this payment round will be available in April 2022.
If you were sent a letter of offer on 15 October 2021 but have not accepted the payment, be aware that the final date for acceptance is 15 June 2022. After this date the 15 October 2021 Letter of Offer will lapse, and you will not be able to accept the offer or request a review.
If you believe you should have received the 15 October 2021 letter but have not, please contact [email protected].
Implementation of the BC payment
The process for the 2021/22 year is the same as was run previously. That means payment will be implemented by the Ministry under a Letter of Offer sent to LMC midwives who have:
- a current authorisation to claim for primary maternity services, and
- who registered one or more women for provision of primary maternity services with the Ministry in the period between 1 September 2020 and 31 August 2021.
To receive the payment each midwife must respond to the Letter of Offer and indicate intent to continue provision of LMC services after the date of the letter 15 October 2021 (by provision of LMC services to at least one woman in the period from the date of the Letter of Offer 15 October 2021 to 30 June 2022).
The Letter of Offer was emailed to eligible LMC midwives on 15 October 2021.
The Letter of Offer remains open for acceptance until 15 June 2022.
Midwives must respond to the offer before 15 June 2022 or the offer will lapse and they will no longer be eligible for the BC payment.
If you feel that you should have received a BC payment offer letter and have not done so by 15 October 2021, please contact [email protected] to provide your details.
The amount of the BC payment to LMC midwives is based on previous provision of LMC services. Registrations for recipients of LMC primary maternity services received in a midwife’s name over the period 1 September 2020 to 31 August 2021 have been used as a proxy for caseload. The date a registration was received by the Ministry was the relevant data point. Each registration for a woman is counted in an individual midwife’s caseload even if there have been one or more changes of LMC.
There are four caseload groupings, 1-9 registrations, 10-19 registrations, 20-39 registrations and 40+ registrations over the period 1 September 2020 to 31 August 2021 (the Specific Time Period). Payments have been allocated to the four groupings based on relative differences in the estimated business costs of LMC midwives with different caseloads.
The BC payment is a contribution to business costs only, with those with a higher caseload receiving a higher amount.
|Category||Description||Payment Amount (GST exclusive)|
|1||Submitted registrations for between 1 and 9 women in the Specific Time Period||$1,360.00|
|2||Submitted registration for between 10 and 19 women in the Specific Time Period||$2,280.00|
|3||Submitted registrations for between 20 and 39 women in the Specific Time Period||$3,320.00|
|4||Submitted 40 or more registrations for women in the Specific Time Period||$4,150.00|
|5||Graduate (with first Notice authorisation after 15 May 2020)||$4,150.00|
These payment dates are only for LMC midwives offered a BC payment Letter of Offer in 2021.
Indicative payment dates are:
- 15 December 2021 for acceptances received by the Ministry on or before 11.59pm 15 November 2021.
- June 2022 for new graduate responses to the BC Letter of Offer received by the Ministry and acceptances of Letter of Offer (15 October 2021) received by the Ministry after 11.59pm 15 November 2021.
These payment dates may be subject to change.
The information about the Letter of Offer for new graduate midwives will become available in April 2022.
The Ministry wants to ensure that midwives providing LMC services receive their full entitlement under the BC payment, and are paid the right amount. An LMC midwife can request a review if they believe:
- they have been placed in an incorrect category, or
- there are other special circumstances surrounding the number of registrations attributed to them
- they should have received a Letter of Offer and did not.
Information on this process can be found on the BC payment review process page.
If you have any queries about the BC payment for LMC midwives please email [email protected].