News reports today reveal the Government plans to "reform" the incentive program, but many people fear the cash-strapped Government will re-jig the program so it costs less, or do away with the rural doctor bonus scheme altogether.

The scheme, running since 1991, pays significant bonuses over and above ordinary salaries based on where a doctor works as encouragement for medicos to pick the country to practice and hopefully stay there long-term as well.

Minister for Health, Nicola Roxon, said in a statement to Rural Press today that the reports on cuts to the bonus scheme were budget speculation, which she would not engage in ahead of the May Budget.

"Last year, we committed to reforming rural health services, and we will deliver on that commitment," Ms Roxon said.

"We need to make sure that rural health services are effective, and respond to real need."

The Opposition's health spokesman, Peter Dutton said in some communities the bonus payments were often the difference between whether or not that community could attract a doctor.

"This financial incentive affects the ultimate decision of the doctor and without it they might just find it easier to stay in the city which is going to be devastating for a number of communities," Mr Dutton said.

"It's been highly successful and the program was extended by the previous government because it did prove a difference in a number of regional communities which in the end were able to attract a doctor.

"But the Government has a $200 billion debt that they have to service, they've just had a $42 billion cash splash, and they have to pay for it somehow.

"Unfortunately it seems that rural communities are going to pay a heavy price."