Modern Australian
Men's Weekly

.

New Zealand’s ‘catch up, patch up’ health budget misses the chance for a national overhaul

  • Written by Robin Gauld, Pro-Vice-Chancellor and Dean, University of Otago

New Zealand’s budget brings a significant funding injection for health and disability services, amounting to around a 9% increase. It is the most substantial increase for the health sector in some time, and in this regard, aligns with the government’s 2019 well-being budget.

Overall, the budget provides an additional NZ$4.3 billion over the next four years. Most of that new investment is a welcome NZ$3.92 billion for the country’s 20 district health boards, many of which have been in perpetual deficit and haven’t received enough funding to cater for the demand on regional hospitals and community health care.

In this sense, the budget provides a long overdue catch up for the health sector, and it patches up the backlog COVID-19 created for elective medical procedures.

But unfortunately it misses the opportunity to make bigger, more systemic changes. The COVID-19 pandemic has shown the current regional approach to health care isn’t good enough to deal with a nationwide threat. So a more visionary budget would have overhauled the health system by supplementing district health boards with a central, nationwide focus.

Read more: COVID-19 has now reached New Zealand. How prepared is it to deal with a pandemic?

Key budget health initiatives

Each district health board is a local health system responsible for planning and funding services within a geographic area, including public hospitals, disability support services, public health and primary care.

The NZ$3.92 billion boost for district health boards is intended to “improve financial sustainability and clinical performance” as well as provide for population ageing and growth, wage increases and inflation.

NZ$282.5 million over the next three years is to provide around 153,000 elective and planned surgeries, radiology scans and specialist appointments that have been delayed by the COVID-19 lockdown. It will also cater for people on waiting lists – a perpetual problem.

NZ$125 million over four years is for other COVID-19 related cost increases – presumably personal protective equipment and additional testing, treatment and contact-tracing. And there’s an additional almost NZ$850 million for disability support to relieve growing pressure on the sector and improve access to services such as home-based care.

Some of the finer detail is yet to be worked out. Firstly, the finance and health ministers said district health boards will be held to account for their performance with the new spending. This means those with deficits will be expected to improve their financial standing. This implies they will be under close government monitoring.

Clinical services will similarly be expected to show improvements in the number of procedures and patients coming through. In this regard, the budget provides more funds for more of the same. Hopefully this will bring improvements for the thousands of patients who languish on waiting lists or miss out on treatment because their condition has not yet deteriorated enough to be treated in the public sector.

New Zealand’s ‘catch up, patch up’ health budget misses the chance for a national overhaul A Covid 19 testing station at Greymouth Base Hospital during New Zealand’s strict level 4 lockdown in April 2020. Lakeview Images/Shutterstock

COVID-19 and what still needs to be fixed

The COVID-19 pandemic has highlighted shortcomings in New Zealand’s health system, some of which are yet to be addressed.

Initially, medical staff in each region worked to different protocols for COVID-19 contact tracing and testing, and it was difficult to combine the data in a central database. While this has now been fixed as part of the country’s pandemic response, the budget doesn’t tackle any of these deeper issues.

The budget could have been an opportunity to forge ahead with much needed health system changes. I’ve suggested elsewhere that district health boards should be abolished and replaced by 20 hospital managers (preferably qualified health professionals) who work as a team. They would run regional hospitals, but be accountable to the Ministry of Health.

Their job should be working collaboratively and strategically, taking a national approach on any issues, including identifying and disseminating best practice across the sector. At the moment, there is no way of achieving this as the district health boards largely work in silos.

Read more: Why New Zealand needs to continue decisive action to contain coronavirus

Funds should be allocated through a local alliance between primary care practitioners, hospital managers and other providers. This would increase capacity to fund innovations in care, such as investment in virtual consultation technology, which GPs have had to use during the COVID-19 lockdown. The budget was quiet on funding to allow GPs to work in more flexible ways – but the pandemic has highlighted considerable cracks and needs here.

Any such changes should be guided by two initiatives, at relatively low cost. First, investment in “operational excellence”, which research shows leads to higher overall performance. For health, this means better financial performance, quality of care and patient outcomes.

At the moment we continue to invest in a sector that undervalues management development. For this reason, we can expect future budgets to replicate the “catch up, patch up” approach.

Second, we need a national clinical leadership initiative. As with the first point, we have long undervalued the potential for our health professionals to provide leadership.

Studies show that medical services and hospitals led by health professionals perform better. There have been failed attempts in New Zealand to develop a leadership initiative, but it is time to revisit this and train health professionals to be excellent, both as clinicians and managers.

Stay in touch with The Conversation’s coverage from New Zealand experts by signing up for our weekly NZ newsletter – delivered to you each Wednesday.

Authors: Robin Gauld, Pro-Vice-Chancellor and Dean, University of Otago

Read more https://theconversation.com/new-zealands-catch-up-patch-up-health-budget-misses-the-chance-for-a-national-overhaul-138509

Why Older Melbourne Homes Require Detailed Building & Pest Inspections

Older homes make up a large part of Melbourne’s housing stock. Victorian terraces, Edwardian houses, Californian bungalows, and post-war brick hom...

7 Essential Tips for Choosing Reliable Moving Services in Perth

Moving to a new home or office can be exciting, but it also comes with stress, planning, and plenty of decisions. One of the most important choices yo...

How to Find the Best Real Estate Agent Near You on the Central Coast

Choosing the right real estate agent can make a major difference to your final sale price, days on market, and overall experience. The Central Coast...

Unlock Durability And Beauty With Burnt Timber Cladding Solutions

Imagine a home or commercial space that not only stands the test of time but also tells a story through its very facade. In the world of architectur...

Offroad Caravans: Built for Adventure Beyond the Beaten Track

Australia’s vast and varied landscapes invite travellers to explore far beyond sealed roads and crowded parks. Offroad caravans are purpose-built ...

The Expert's Guide to Understanding Large Bore Steel Pipe Specifications

When it comes to infrastructure, construction, and various industrial applications, the choice of materials is paramount. Among the options availabl...

Preparing for Your First Trip to San Francisco in 2026

San Francisco has long occupied a particular place in the Australian imagination. It is compact yet complex, progressive but historic, and visually st...

Modern Office Painting in Australia - It's the Real Game Changer

Walk into any modern Australian office today and you'll be struck by the fact it's a whole different beast from the ones we grew up with. Gone are t...

How to Choose the Right Suburb for Your Lifestyle

Choosing the right suburb is one of the most important decisions you’ll make when buying or renting a home. Beyond the property itself, the suburb...

Considering Cryolipolysis Fat Freezing? Here’s What You Need to Know

Body confidence can shift over time, and sometimes even good diet and training can still leave a stubborn area of fat that won’t budge. If you’r...

From Local Tradie to Digital Leader: The Strategy Behind Auto Gate Guys Sydney’s Growth

For many small trade businesses, digital marketing still feels like a buzzword, not a necessity. They rely on word-of-mouth referrals, repeat clients...

Electric Automation System: Smarter Control for Modern Electrical Infrastructure

Modern buildings and industrial facilities are increasingly dependent on intelligent control and efficiency. An electric automation system brings t...

The Damp Truth: Why Your Overflowing Gutters Are an Open Invitation for Termites

When it comes to protecting your home, most people think about visible threats — storm damage, cracked tiles, break-ins. But one of the most destruc...

Is Your Inventory a Sitting Duck? 2 Critical Upgrades to Protect Your Business Assets and Your Bottom Line

Imagine this: you finish a long day on the job, lock up your tools, materials, and work vehicle in the garage, and head home. But overnight, someone b...

Electrician in Melbourne: Reliable Electrical Solutions for Homes and Businesses

Finding a dependable electrician Melbourne is essential when safety, efficiency, and long-term performance matter. Electrical systems form the back...

Rims and Tyres for Sale in Sydney: Performance, Safety, and Style Combined

Finding the right rims and tyres for sale Sydney is about far more than appearance. Tyres and rims directly influence how a vehicle handles, brakes...

Why Access to Doctors in Bundoora Is Essential for Ongoing Community Health

Reliable access to healthcare plays a vital role in maintaining physical wellbeing and peace of mind. Having trusted doctors in Bundoora available ...

Pendant Lights: Elevating Interior Spaces With Style and Purpose

Well-chosen pendant lights have the power to transform interiors by combining focused illumination with strong visual impact. More than just a ligh...