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Dr Gannon said that replacing the system is modernisation, not privatisation.
"The AMA made it very clear during the election campaign that replacing the backroom payment system for Medicare does not equate to the privatisation of Medicare," Dr Gannon said.
"The current payment system is 30 years old. It is clunky and inefficient. Its many faults create inefficiency and inconvenience for doctors and patients.
"Medical practices have now taken on much of the work of processing Medicare payments on behalf of the Government, and this can be cumbersome and time-consuming.
"It is critical the AMA is closely involved in the design of the new system to ensure it meets the needs of doctors and patients.
"Medical practices must be properly supported by the Government to incorporate and implement new equipment and technologies to benefit patients," Dr Gannon said.
