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

Lead maternity care (LMC) midwives and graduate midwives who would like to accept the Ministry of Health’s third and final payment for business costs as part of the Budget 2021/2022 Maternity Package must do so by 15 June 2022. 

The Business Contribution (BC) payment contributes to the costs of being self-employed.

The Letter of Offer to eligible LMC midwives (excluding new graduates) was sent via email on 15 October 2021. If you were sent a letter of offer in October but have not yet accepted the payment, please be aware that the final date for acceptance is 15 June 2022. After this date the BCP Offer will lapse and you will not be able to accept it or request a review. 

The Letter of Offer for new graduate midwives was sent via email on 17 May 2022. The BCP Offer for new graduates will also remain open until 15 June 2022.

Payments to both LMC midwives and new graduate midwives who accept the offer by the stated deadline, will be made by 30 June 2022.

If you believe you should be eligible for a BC payment and did not received a Letter of Offer in October 2021 or in May 2022, 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 Letter of Offer for new graduate midwives was sent on 17 May 2022.

If you believe you should be eligible for this payment and have not received a Letter of Offer on 17 May 2022, please contact [email protected].

The Offer for new graduates will remain open until 15 June 2022, and payment will be made by 30 June 2022.

Payment categories

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.

BC payment amounts
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

Payment dates

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.
  • 30 June 2022 for new graduate responses to the BC Letter of Offer received by the Ministry on or before 15 June 2022.

These payment dates may be subject to change.

Graduates

Graduate midwives from 2021 and 2022 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 2021;
  • have first registered with the Midwifery Council of New Zealand after 1 January 2021;
  • have received an authorisation to claim for primary maternity services under the Primary Maternity Services Notice 2021 (the Notice) from the Ministry after 15 May 2021 and before the date of this Letter of Offer, with that authorisation remaining current at the date of acceptance;
  • not have previously claimed or been sent a Business Contribution (BC) offer; and
  • complete, scan and return the Response Form to the Ministry before the End Date of 15 June 2022.

The Letter of Offer for new graduate midwives was sent on 15 May 2022. If you believe you should be eligible for this payment and did not receive a Letter of Offer on 15 May 2022, please contact [email protected].

The Offer for new graduates will remain open until 15 June 2022, and payment will be made by 30 June 2022.

You can contact the Ministry directly if you have questions about the BC payment for new graduates. Please email [email protected], contact the Ministry of Health Customer Service team on 0800 855 066 or email [email protected].

Review process

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].

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