MRI Medicare Rebates Explained

MRI Rebate Eligibility Requirements

Many individuals are surprised to learn that not every MRI scan in Australia qualifies for a Medicare rebate. It has little to do with the quality of the scanner, the skill of the radiologist, or the needs of the patient. Instead, it primarily comes down to how Medicare licences were allocated over a decade ago. During this time, those historical rules have quietly shaped the entire medical imaging landscape.

At the time of writing, access to Medicare-eligible MRI scans is broken down into three main factors:

1) Is the practice an accredited radiology provider?
2) Is there an applicable Medicare item code?
3) Does the MRI machine / radiology clinic have a Medicare rebate licence?

Accreditation Requirements

All practices that wish to provide Medicare-eligible imaging on any modality must be accredited against national standards under the Diagnostic Imaging Accreditation Scheme (DIAS). This ensures radiology providers meet minimum patient care and diagnostic quality standards.

Is there an applicable Medicare item code?

Not all body regions and clinical indications are covered by MRI. For example, “abdominal pain” is not inherently covered by Medicare on licenced MRI scanners.

Presumably this was intentional, a way to focus public funding on proven, high-value imaging when MRI use was still developing. However, MRI technology has advanced enormously over the past decade, and today it plays an essential diagnostic role across nearly all body systems. Many now argue the rebate system has not kept up with clinical reality.

MRI Scanner & Practice Eligibility

Over ten years ago, the federal government issued a fixed number of Medicare-eligible MRI licences, known as Deeds of Undertaking, to manage costs when MRI was still a rare and expensive technology. Under this system, rebate eligibility was tied to specific MRI machines rather than the practice itself, meaning only those scanners listed in a Deed of Undertaking could bill Medicare for MRI services.

While the goal was equitable access, the unintended effect has been to limit competition and innovation over the long term. Newer independent practices, often those investing in the latest technology for superior diagnostic capabilities, have been unable to offer rebates simply because Medicare was not accepting (nor inviting) applications for MRI rebate licences.

How MRI Licensing Shaped Today’s Access

As a result, over half (53%)(1) of Medicare-eligible MRI scanners are now owned by corporate radiology companies, consolidating market share among a few large players. This concentration of ownership has created an ecosystem where business efficiency and investor return often outweigh diagnostic quality.

Although not inherently bad, corporate radiology operates on a large-scale operating models designed around high patient volumes and streamlined workflows. These efficiencies can reduce costs, but they also limit opportunities for more individualised, detail-focused imaging. Because Medicare rebates are paid per scan or service, not per diagnostic outcome, the current system naturally rewards activity over thoroughness or diagnostic quality.

For patients, these structural incentives are largely invisible but deeply influential. Many are left choosing between a “free” scan at a licensed corporate clinic and paying nearly $500 out-of-pocket at an independent practice. On the surface, it seems like a simple financial decision — yet not all MRI scans are the same. Image quality, technology, and the radiologist’s expertise can vary widely, and without understanding what truly drives diagnostic accuracy, most patients understandably opt for the “free” option.

Reforming MRI Rebate Eligibility

After extensive industry advocacy, Medicare has now begun the process of deregulating MRI licensing. From July 2025, practices that previously held a partial licence have been granted a practice-based licence, allowing full Medicare billing across all MRI units within their practice.

Clinics without an existing rebate-eligible scanner will need to wait a little longer. By 2027, it is anticipated that all accredited MRI providers will be eligible to offer Medicare-rebatable scans once specific eligibility requirements are met, such as operating a comprehensive radiology service.

Why Choose MBR Health’s 3T MRI?

Did you know you can take your referral or diagnostic imaging request to any provider?

At MBR Health (formerly Mermaid Beach Radiology), we recognise that choosing where to have your MRI is a complex decision — balancing cost, technology, availability, and diagnostic quality.

As a private, independent, family-owned practice, we are committed to delivering outstanding imaging care built on precision, innovation, and comfort. Because we are a relatively new clinic (founded in early 2021) our exceptional MRI services, unfortunately do not attract a Medicare rebate at this time.

The benefits of choosing MBR Health 3T MRI include the following:

Internationally recognised MRI Expertise.

Our MRI department is operated by published author, MRI radiographer Ben Kennedy, ensuring world-class technical and clinical oversight.

Exceptional image quality and fidelity.

MBR Health offer AI-powered, super high-resolution 3T MRI technology for exceptional image quality and diagnostic accuracy

More comprehensive diagnostic imaging.

Our custom-developed MRI protocols on average include more MRI sequences per scan than most providers. This offers more complete diagnostic information and reduces the need for follow up imaging.

Exclusive MRI technology

MBR Health offers not available elsewhere in Australia. Our industry collaborations often mean we have access to tools before available elsewhere.

Faster access to appointments

Compared to bulk-bill or gap payment MRI, MBR Health is typically able to schedule individuals in within one week. Availability is scan-type dependent, with some complex imaging, such as Cardiac MRI or Whole Body MRI having a slightly longer wait time of 2 – 4 weeks.

Ability to watch movies or TV shows

MBR Health’s world class patient experience includes the ability to watch movies or TV shows during tour scan.

Trusted 5-star patient satisfaction

We are proud to have over 1,600 5-star Google reviews, making us the highest rated radiology practice in Australia.

In a survey of MBR Health patients, over 80% of individuals chose MBR Health because of our reputation and diagnostic confidence.

Local family-owned and independent

Radiologist-owned and operated, by Dr Zane Sherif, MBR Health is a small team, who are passionate about personalised healthcare. To learn more about our team visit our About page.

Additional Information

If you have any questions about our 3T MRI services, please contact us.

If you already have a referral from your GP, Specialist Doctor, or allied Health provider for an MRI scan, please visit our patient information page for next steps in the booking process.

Disclaimer: The information provided above is not medical advice and should not be used as a substitute for consultation with a qualified health professional. All diagnostic imaging, including MRI, requires a valid referral, even in the absence of Medicare eligibility. We recommend speaking with your doctor or other healthcare provider about whether MRI imaging is appropriate for your individual circumstances.

References:
1). Docking S, Lacy-Nichols J, Hensher M, Buchbinder R. Corporatisation and ownership concentration in diagnostic imaging: an audit of Australian practices. Aust Health Rev. 2025;49(4):AH25073. doi:10.1071/AH25073