Billing basics

Medicare referral rules for hospital claims: when you need one, how long it lasts, what if it’s missing

The two ways to document a referral on an inpatient claim, the standard letter and the in-hospital override.

The Short Answer

A valid referral is required for all specialist and consultant physician services billed to Medicare, and two pathways exist for documenting it on an inpatient ECLIPSE claim.


When a Referral Is Required

Referral Always Required

  • All specialist and physician services
  • Initial and subsequent consultations
  • Surgical and procedural items
  • Mixed claims
  • Any service at referred specialist benefit rate

Referral Not Applicable

  • Public hospital inpatients
  • Pathology and diagnostic imaging
  • Non-referred attendance items

The referral covers the whole course of treatment

When a GP refers a patient to a surgeon, that referral authorises the entire episode of care. A new referral is not needed for each individual service within the same course of treatment.


Two Valid Pathways When Admitted

Standard referral letter

How it works
Formal written referral from a GP, an ED doctor or another specialist.
What goes on the claim
The referring doctor’s name, provider number and referral date.
Expires
GP referral: 12 months. Specialist to specialist: 3 months.

In-hospital override

How it works
A colleague refers you while the patient is admitted, documented in the hospital notes.
What goes on the claim
“Referral within [Hospital Name]”
Expires
On discharge.

How the In-Hospital Override Works

  1. 1

    A colleague refers you

    The referral must be written in the hospital record. Even a single signed line in the notes is sufficient.

  2. 2

    The referring doctor must be a consultant or senior registrar

    The referring clinician cannot be an intern or junior RMO. They must hold consultant or senior registrar status.

  3. 3

    FreshClaim uses the override flag on your claim

    If you don’t manually add any referral details in your submission for an inpatient claim, FreshClaim lodges your claim with an in-hospital override.

  4. 4

    The referral expires on discharge

    The in-hospital referral is valid only for the duration of the admission and expires when the patient is discharged.


Rules and Common Mistakes

The override does not reset the “single course of treatment” clock

An in-hospital override is not a fresh referral. It does not restart the referral period. The original referral’s expiry still applies once the patient leaves hospital.

The outpatient follow-up needs its own referral

If you see the patient after discharge in your rooms, the in-hospital override no longer applies. You need a standard GP or specialist referral for outpatient services.

Emergency exception: the emergency service only

In a genuine emergency, where the service has to be rendered as quickly as possible, a specialist may provide it without a referral. Services after the emergency need a referral.

Do not backdate referrals

Backdating a referral constitutes a false statement under the Health Insurance Act 1973.


How FreshClaim Handles This

FreshClaim default behaviour

FreshClaim defaults every new specialist claim to in-hospital referral. If the patient was referred externally (for example, by their GP), update the referral details before submitting the claim.


Quick Reference

Is a referral needed?
SituationReferral needed?On the claim
Private patient admitted on a GP or specialist referralYes: the standard referralReferring doctor’s name, provider number and referral date
Referred from the emergency departmentYes: the standard referralThe ED consultant’s name and provider number. The referral date is the date of the ED consultation.
Referred by a consultant or senior registrar during the admissionYes: the in-hospital override“Referral within [Hospital Name]”. In FreshClaim, select In-hospital referral. No individual provider details required.
A new, unrelated condition arises during the admissionYes: the in-hospital override for the new conditionThe existing referral does not cover unrelated conditions
Locum covering the referred specialistYes: the original referralThe original referral details. The referral follows the patient, not the treating doctor.
EmergencyNot for the emergency serviceWhere it has to be rendered as quickly as possible. Services after the emergency need a referral.
DVA (Veteran Card) patientYes: the same periods as MedicareReferral details as for a standard referral. A GP may write an indefinite referral for a chronic condition.
Follow-up in your rooms after dischargeYes: a new standard referralThe in-hospital override expired on discharge
Public patient in a public hospital; pathology and diagnostic imaging; non-referred attendance itemsNo—
How long each referral lasts
ReferralValid for
GP referral12 months from your first service under it, not from the date on the letter, unless the GP writes another period: 3, 6 or 18 months, or indefinite for a chronic condition.
Specialist or consultant physician referral3 months from your first service under it. For an admitted patient, the admission: it ceases on discharge.
In-hospital overrideThe admission only. It expires on discharge and does not restart the original referral’s period.
Indefinite referralOngoing for the condition it names. A new or unrelated condition needs a new referral.
Emergency exceptionThe emergency service only, where it has to be rendered as quickly as possible. Later services need a referral.
Missing, expired or lost
ProblemWhat to do
The referral has expiredGet a new referral before the service. Never backdate one: that is a false statement under the Health Insurance Act 1973.
No referral at the time of service, and not an emergencyBill the attendance as non-referred, at the lower rebate, and obtain a referral before the next service.
The referral letter is lost, stolen or destroyedThe claim can still be paid at the referred rate: show the referring doctor’s name and mark the referral as lost on the claim.
The in-hospital referrer was an intern or junior RMONot a valid in-hospital referral. The referrer must be a consultant or senior registrar; get a valid referral.
The referral names a different conditionA referral covers the course of treatment for the condition it was written for. A new or unrelated condition needs a new referral, or the in-hospital override while the patient is admitted.

Common questions

Does Medicare require a referral for inpatient specialist claims?

For attendance items, yes. A valid referral is needed for specialist and consultant physician attendances to attract Medicare benefits at the referred rate. Procedural items and pre-anaesthesia consultations (17610 to 17625) do not need one.

How long is a GP referral valid in Australia?

A GP referral to a specialist is valid for 12 months. A specialist-to-specialist referral is valid for 3 months.

What is an in-hospital referral override?

An in-hospital referral override is a Medicare pathway where an admitted patient is referred to a specialist by a colleague within the hospital, documented in the hospital record instead of a standard written GP referral. It is valid only for the duration of the admission and expires on discharge.

Can a specialist bill without a referral in an emergency?

In a genuine emergency, where the service has to be rendered as quickly as possible, an Australian specialist may provide it without a referral. Services after the emergency need a referral.

Can a Medicare referral be backdated?

No. Backdating a referral constitutes a false statement under the Health Insurance Act 1973.


Legislative references: Health Insurance Regulations 2018; MBS Note GN.6.16; Health Insurance Act 1973 s.19(6).

Referral details, handled at capture

FreshClaim defaults specialist claims to the in-hospital referral pathway and prompts for external referral details when they apply, so claims are complete before they are lodged.