Health Minister Greg Hunt said in a statement after meeting Australian Medical Association president Tony Bartone in Melbourne on Tuesday night that the My Health Record Act would be redrafted.
Controversy over the digital record system erupted after a three-month period for opting out kicked off on 16 July.
Two days later, the former head of the government's Digital Transformation Agency, Paul Shetler, added to the furore by saying that the system could well end up as another tech wreck, and that if he was an Australian, he would probably opt out himself.
"The Digital Health Agency’s policy is clear and categorical - no documents have been released in more than six years and no documents will be released without a court order. This will be enshrined in legislation."
Dr Bartone told The Sydney Morning Herald that he welcomed Hint's decision.
"In addition, we’ve also impressed upon the Minister that there’s a need to have some clear air, to ensure that the community has time to fully understand what is a My Health Record and what is entailed in the opt out process," he said.
Dr Bartone added that Hunt was willing to consider an extension of the opt-out period by a month.
The Australian Digital Health Agency has been reluctant to provide statistics about the number of opt-outs.
When iTWire asked the ADHA a day after the opt-out period began about how many were choosing to have their names to be taken off, the agency said there were no figures available as yet.
"Following the end of the three-month opt-out window, there will be a 30-day reconciliation period for the processing of paper forms arriving by mail," a spokesperson said.
"Records will then be created for Australians who have not opted out of having a My Health Record. These records must be created by the end of 2018 and further statistics will be available then."