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Local Medicare Local peer groups are the grouping of the 61 Medicare Locals into seven peer groups. This grouping was undertaken by the National Health Performance Authority using statistical cluster analysis of 2006 Census based socioeconomic status, for each Medicare Local and 2006 Census based Remoteness Area categories (ABS cat. no. 2039.0). Additional information on the average distance to the closest large city and major hospital (A1 public hospital peer group classification, 2010–11) contributed to the assignment of Medicare Locals to peer groups. Groupings were tested for face validity with a stakeholder group. The National Health Performance Authority has created 7 peer groups: Metro 1 to 3, Regional 1 and 2 and Rural 1 and 2.