Lead Maternity Care midwives: Business Contribution Payment

A payment to Lead Maternity Care midwives providing primary maternity care to contribute to the costs of being self-employed.

Update on Business Contribution Payment Progress, including information for New Graduates

The Letter of Offer to eligible LMC midwives (excluding new graduates) was sent on 21 November 2019. If you were sent a letter of offer on 21 November 2019 but have not yet accepted the payment, be aware that the final date for acceptance is 15 June 2020, the time to accept your letter of offer has been extended due to the COVID 19 outbreak. After this date the 21 November 2019 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 21 November 2019 letter but have not, please contact primarymaternity@health.govt.nz.

The Letter of Offer for new graduate midwives was sent via email on 15 May 2020. If you believe you should be eligible for this payment and have not received a Letter of Offer on 15 May 2020, please contact primarymaternity@health.govt.nz.

The Offer for new graduates will remain open until 15 June 2020, and payment will be made on 26 June 2020.

The Ministry of Health is making a payment to eligible LMC midwives as part of the Budget 2018 Maternity Package announced by the Government in May 2018. This payment is called the Business Contribution payment (BC payment). This is the second year of the payment. The funding granted in Budget 2018 for this payment was time limited. No funding was made available for payments after the 2019/20 financial year, which ends on 30 June 2020.

Implementation of the BC Payment

The process for the 2019/20 year is the same as was run previously. That means payment will be implemented by the Ministry under a Letter of Offer sent to lead maternity care (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 2018 and 31 August 2019, or
  • who are new graduates since 1 January 2019 providing primary maternity services as a lead maternity carer (further details on the payment for graduates is below).

To receive the payment each midwife must respond to the Letter of Offer and indicate intent to continue provision of primary maternity services after the date of the letter (by provision of primary maternity services to at least one woman in the period from the date of the Letter of Offer to 30th June 2020).

The Letter of Offer was mailed to eligible LMC midwives on 21 November 2019.

The Letter of Offer remains open for acceptance until 1 June 2020. Midwives MUST respond to the offer before 1 June 2020, 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 30 November 2019, please contact primarymaternity@moh.govt.nz to provide your details.

The Letter of Offer for new graduate midwives was sent on 15 May 2020.

If you believe you should be eligible for this payment and have not received a Letter of Offer on 15 May 2020, please contact primarymaternity@health.govt.nz.

The Offer for new graduates will remain open until 15 June 2020, and payment will be made by 26 June 2020.

Payment categories

The amount of the BC payment to LMC midwives is based on previous provision of LMC services. Registrations for recipients of primary maternity services received in a midwife’s name over the period 1 September 2018 to 31 August 2019 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 has 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 2018 to 31 August 2019 (the Specific Time Period). Payments have been allocated to the four groupings based on relative differences in the estimated business costs of midwives with different caseloads.

The BC payment is a contribution to business costs only, with those with a higher caseload receiving a higher amount.

BC payment amounts
Category Description Payment Amount (GST exclusive) Amount midwife will receive (GST inclusive)
1 Submitted registrations for between 1 and 9 women in the Specific Time Period $1,360.00 $1,564.00
2 Submitted registration for between 10 and 19 women in the Specific Time Period $2,280.00 $2,622.00
3 Submitted registrations for between 20 and 39 women in the Specific Time Period $3,320.00 $3,818.00
4 Submitted 40 or more registrations for women in the Specific Time Period $4,150.00 $4,772.50
5 Graduate (with first notice authorisation after 13 May 2019) $4,150.00 $4,772.50

Payment Dates

These payment dates are only for Midwives offered a Business Contribution Letter of Offer in 2019.

Indicative payment dates are:

  • 31 March 2020 for acceptances received by the Ministry on or before 15 March 2019
  • 30 June 2020 for acceptances received by the Ministry on or before 1 June 2020
  • 26 June 2020 for new graduate responses to the BC Letter of Offer received by the Ministry on or before 15 June 2020.

These payment dates may be subject to change.

Graduates

Graduate midwives from 2019 and 2020 will receive the same payment as those LMC midwives in the 40+ caseload category regardless of the graduate’s caseload. This is to recognise the expenses graduates incur.

For graduates, the eligibility criteria are that you must:

  • be New Zealand trained and have graduated from a New Zealand training institution after 1 January 2019;
  • have first registered with the Midwifery Council of New Zealand after 1 January 2019;
  • have received an authorisation to claim for primary maternity services under the Primary Maternity Services Notice 2007 (the Notice) from the Ministry after 13 May 2019 and before the date of this Letter of Offer, with that authorisation remaining current at the date of acceptance;
  • intend to provide primary maternity services under the Notice to women, as indicated by intent to provide primary maternity services to at least one woman in the period 21 November 2019 to 30 June 2020;
  • not have previously claimed or been sent a BC offer; and
  • complete, scan and return the Response Form to the Ministry before the End Date of 15 June 2020.

The Letter of Offer for new graduate midwives was sent on 15 May 2020. If you believe you should be eligible for this payment and have not received a Letter of Offer on 15 May 2020, please contact primarymaternity@health.govt.nz.

The Offer for new graduates will remain open until 15 June 2020, and payment will be made by 26 June 2020.

You can contact the Ministry directly if you have questions the BC payment for new graduates. Please email  primarymaternity@health.govt.nz.

Review process

The Ministry wants to ensure that midwives providing primary maternity 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 Business Contribution payment review process page.

If you have any queries about the Business Contribution payment for community midwives please email primarymaternity@moh.govt.nz

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