Lead Maternity Care midwives: Business Contribution Payment

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

The Business Contribution payment for 2017, 2018 and first half of 2019 is now closed. We will not be accepting any more applications for new graduate payments or entering into further discussion about offers already made.

The Ministry of Health is making a one-off 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).

Read more about the 2019 Business Contribution Graduate follow-up payments.

Implementation of the BC Payment

The 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 2017 and 31 August 2018, or
  • who are new graduates since 1 January 2017 providing primary maternity services as a lead maternity carer (LMC).

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 15th October 2018 to 30th June 2019).

The Letter of Offer was mailed to eligible LMC midwives on 15 October 2018

The Letter of Offer remains open for acceptance until 15 May 2019. Midwives MUST respond to the offer before 15 May 2019, 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 29 October 2018, please contact primarymaternity@moh.govt.nz to provide your details.

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 2017 to 31 August 2018 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 2017 to 31 August 2018 (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.  

Graduates

Graduate midwives from 2017 and 2018 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. The cohort of graduates in early 2019 who successfully apply for an authorisation to claim for primary maternity services will also receive the payment in an additional payment runs in 2019.

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 (after 1 January 2017) $4,150.00 $4,772.50

Payment Dates

These payment dates are only for Midwives offered a Business Contribution Letter of Offer in 2018.

Indicative future payment dates are:

  • 27 February 2019 for acceptances received by the Ministry on or before 15 February 2019
  • 27 May 2019 for acceptances received by the Ministry on or before 15 May 2019.

These payment dates may be subject to change.

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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