A unit within the federal health department set up to look at improving the Medicare payments system appears to have shut up shop.
Labor claims the coalition plans to privatise Medicare, pointing to a $5 million project called the "digital payments services taskforce".
The government set up the taskforce - advised by consultants PricewaterhouseCoopers - to look at saving taxpayers' money by having private contractors process about $50 billion in claims and payments annually.
Heading off the Labor attack, Prime Minister Malcolm Turnbull on Monday said any efficiencies in the system would be found within government, not the private sector.
The taskforce's phone number, listed on the PWC tender brief, now has the recorded message: "You may not be aware that our corporate BMU (business management unit) is no longer operational."
A spokesman for PWC declined to say whether or not the consultant firm was still working on the project, referring AAP to the health department.
The PWC tender brief says the contract extends from May 4 to December 31.
A number of private companies, including telcos such as Telstra, EFTPOS providers and the big banks, have shown interest in running the system as they have online payment and supply structures.
The government-owned Australia Post has also flagged its willingness to take on more responsibilities for payments and services.
Senior health department officials have voiced concerns the outdated system, elements of which date back to the 1980s, is making it harder to manage Medicare and other payments.
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