Changes to the model used to do determine funding and incentives for general practice will put nursing jobs at risk and lead to increased fees for Tasmanian patients, according to the Australian Medical Association.
The peak body representing the state's medical profession has launched a petition calling on the federal government to either reclassify Tasmania under the Modified Monash Model or make changes to the way regional cities like Launceston are classified.
The model measures remoteness on scale of MM1 to MM7.
Changes to the model means rural towns such as Lilydale have been reclassified to the equivalent standing of a city like Launceston.
From January 1 the government will no longer be providing rural loadings to MM2 areas, like Launceston.
Changes to the eligibility of the government's Workforce Incentive programs also means some MM2 GP practices eligible for the Practice Nurse Incentive Program will be impacted.
AMA Tasmania Northern Division spokesman Dr Donald Rose said along with all of Launceston, rural communities of Lilydale, Exeter, Evandale, Carrick and Longford would all lose 20 per cent of their PNIP funding.
"Part of the reason we are jumping up and down so much is we know that all of our future payments are going to have the rural loading removed," he said.
"So the north of the state and particular the regional areas can be classified the same as Liverpool Street.
"It's just ludicrous to think that we have the same resources as Hobart."
Dr Rose was among a number of northern GPs who raised these concerns during a forum with federal Health Minister Greg Hunt and Bass Liberal MHR Bridget Archer in October.
However, he said no action had been taken to address the issues.
Ms Archer said she was continuing discussions with Mr Hunt.
"Understanding the importance of the issue, I also arranged for Mark Coulton, Minister for Regional Services, to directly meet with managers and doctors of a number of Northern Tasmanian general practices in mid-December to further progress the conversation.
"The meetings were very constructive and the minister developed a greater understanding of what the challenges are and has undertaken to further investigate this matter."
Dr Rose said in the long run the changes would impact patients, with general practice being left with no choice but to increase fees.
"We get the least Medicare funding in the country. The way our population is spread out, we are going to get even less now under this new change."