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.

Important note about the Business Contribution Payment Date from the Ministry of Health 

Due to the large volume of responses to the Business Contribution Letters of Offer that the Ministry has received to date,  we will be making one additional early payment on the 20th of December 2019.

If you would like your Business Contribution payment to be considered for the 20th of December 2019 payment, you will need to return your Business Contribution Letter of Offer acceptance fully completed by 11pm on the 10th of December 2019.

Any responses received after this date will be processed and paid in March 2020 as per the Business Contribution Letter of Offer.

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.

Please note that for new graduates, the Letter of Offer will be sent later in 2020, to cover as many graduates as possible. Further information on the payment for graduates is below.

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.

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. In order to incorporate the cohort of graduates in early 2020 who successfully apply for an authorisation to claim for primary maternity services, the Letter of Offer for graduates is expected to be sent in May 2020, with payments to be made by the end of June 2020.

For graduates, the eligibility criteria are that you must:

  • be New Zealand Trained
  • have graduated after 1 January 2019
  • have received your first authorisation to claim for primary maternity services after 13 May 2019 (the date of the previous letter of offer to graduates) and before the date of the Letter of Offer to you
  • not have previously received a graduate BC payment in 2018 or 2019
  • meet the other criteria to qualify for the BC payment (ie have a current valid authorisation to claim and intend to continue to provide services in 2019/20).

You can contact the Ministry directly if you have questions about your eligibility for the graduate payment or about the timeframe of the payment. 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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