A payment to Lead Maternity Care midwives providing primary maternity care to contribute to the costs of being self-employed.
Business Contribution Payment for 2020/21
The Ministry of Health is making a third and final payment to eligible lead maternity care (LMC) midwives for business costs as part of the Budget 2020 Maternity Package announced by the Government in July 2020. 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 2020. If you were sent a letter of offer on 15 October 2020 but have not yet accepted the payment, be aware that the final date for acceptance is 15 June 2021. After this date the 15 October 2020 Letter of Offer will lapse and you will not be able to accept the offer or request a review.
There will be two payment rounds of the 2020/21 BC payment for LMC midwives. For the payment round scheduled for 1 December 2020, you must accept the offer and send your response to [email protected] no later than 11.59 pm on 15 November 2020 to be included in this payment round. The second payment round for LMC and new graduates is scheduled for June 2021. Information about this payment round will be available in April 2021.
If you believe you should have received the 15 October 2020 letter but have not, please contact [email protected].
Implementation of the BC payment
The process for the 2020/21 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 2019 and 31 August 2020, or
- who are new graduates since 1 January 2020 providing primary maternity services as a lead maternity carer (further details on the payment for graduates will be available in April 2020).
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 (by provision of LMC services to at least one woman in the period from the date of the Letter of Offer to 30 June 2021).
The Letter of Offer was emailed to eligible LMC midwives on 15 October 2020.
The Letter of Offer remains open for acceptance until 15 June 2021. Midwives must respond to the offer before 15 June 2021, 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 2020, please contact [email protected] to provide your details.
The information about the Letter of Offer for new graduate midwives will become available in April 2021.
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 2019 to 31 August 2020 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 2019 to 31 August 2020 (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 2020.
Indicative payment dates are:
- 1 December 2020 for acceptances received by the Ministry on or before 11.59 pm 15 November 2020
- June 2021 for new graduate responses to the BC Letter of Offer received by the Ministry and acceptances of Letter of Offer (15 October 2020) received by the Ministry after 11.59 pm 15 November 2020.
These payment dates may be subject to change.
Graduate midwives from 2020 and 2021 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 startup costs 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 2020
- have first registered with the Midwifery Council of New Zealand after 1 January 2020
- have received an authorisation to claim for primary maternity services under the Primary Maternity Services Notice 2007 (the Notice) from the Ministry after 15 May 2020 and before the date of the Letter of Offer to them, with that authorisation remaining current at the date of acceptance
- intend to provide LMC services under the Notice, as indicated by intent to provide LMC services to at least one woman in the period 15 May 2020 to 30 June 2021
- not have previously claimed or been sent a BC offer.
You can contact the Ministry directly if you have questions the BC payment for new graduates. Please email [email protected].
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].