Billions of dollars will go into the reformed, centralised health system over the next four years, but Māori will see just a little of it, Marc Daalder reports
The Government has revealed the cornerstone of Budget 2022 will be an $11.1 billion dollar operating budget for Health New Zealand over the next four years.
That’s the biggest chunk of what Finance Minister Grant Robertson said would be the “largest investment ever in our health system”, with another $1.3 billion in capital expenditure going towards refurbishing hospitals and other health infrastructure. This year also marks the start of a new funding model for the health system, which will receive multi-year allocations rather than one-off bumps to its budget.
“Our health system is staffed by dedicated and talented health professionals, but the system in which they are working is fragmented, inefficient and financially unsustainable,” Robertson said.
Health NZ will be the country’s new health service, rising from the amalgamation of 20 District Health Boards (DHBs). It will receive the bulk of the health system’s $1.8b in extra funding in its first year of operation, beginning from July 1, but not all of this will go to staff and services. A portion will wipe off the $550 million in debt that the DHBs have managed to accrue over more than a decade of poor financial management.
From next year, the health system will get a $1.3b boost to its new budget, bringing the annual increase in operating expenditure to $3.1b. No further cost increases are planned, but the multi-year funding model means the Government could signal another boost in next year’s Budget a year or two before the increase takes effect.
The new capital expenditure will prioritise the redevelopment of Nelson, Whangarei and Hillmorton Hospitals, Health Minister Andrew Little said.
A group of Māori ministers celebrated the health funding earmarked for Māori in Budget 2022, which sums up to just over half a billion dollars.
“We have already shown we achieve remarkable things when we have services designed by Māori for Māori. This is about putting whānau first and supporting new and different approaches that work for our hapori,” Associate Health Minister Peeni Henare said.
But the funding for the new Māori Health Authority to commission health services dwindles in comparison to the Health NZ’s multibillion dollar operating budget, at just $168 million over the next four years.
Henare defended the difference, saying he was “extremely proud” of the Budget.
“This is building on past investments and we will continue to support our aspirations,” he said.
Robertson said the reforms would address “the long-standing inequities we have in our health system” but conceded “it is just the beginning”. He also pointed to other Māori health funding in the Budget, like $30m for Māori care providers and $39m for development of the hauora Māori workforce.
Alongside money for the new health system, a bevy of services have received specific funding. Just over $250 million is earmarked for backing up underfunded ambulance services, with two thirds going to road ambulances and a third to choppers.
The medicines purchaser Pharmac has received its largest ever funding boost, with $191 million across the next two years.
More than $100m for mental health services was announced ahead of the Budget. Another new funding boost came in the form of $102m for community health.
“A shift to focusing on better, earlier care at GPs and local health centres will ensure New Zealand’s health system can provide quality care, at the right time, and in the right place, while taking pressure off our hospitals,” Little said.
“This investment will grow primary healthcare teams around the country and allow GPs to work more seamlessly with services like physiotherapists, pharmacists and social workers to offer greater care, earlier, and closer to home.”
Under the child poverty heading, the Government also fulfilled a 2020 election promise, lifting the amount available in annual dental grants for families in hardship from $300 to $1000.
“Many low-income New Zealanders find it difficult to afford immediate and essential dental care, and increasing the level of the grant will ensure more people can receive the urgent help they need,” Social Development Minister Carmel Sepuloni said.
