Investing 'intelligently' in the health of New Zealand

Embargoed until: Publicly released: 2024-08-23 00:01

New Zealand

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The New Zealand health system's financial woes are due to systematic underfunding rather than financial mismanagement, according to an NZMJ editorial by the Association of Salaried Medical Specialists' research and policy team. The authors write that the national health budget for 2024-25 isn't enough to account for inflation, wage growth, and increasing healthcare needs due to ageing and population growth; but that it also follows years of underfunding resulting in failing infrastructure and treatment backlogs. They say that any cost reductions made by the new health commissioner will further affect frontline services, and that 'New Zealand can afford to invest intelligently in the health of its population,' given that investments in health ultimately also benefit the economy. The editorial concludes there is an 'urgent need' for an independent inquiry into how the health system is funded, which accounts for 'the true cost of health services' and the economic benefits of viewing health as an investment in people.

Media release

From: Pasifika Medical Association Group

Is the health system over-spending or is it a victim of systemic under-funding? With the sacking of Health New Zealand – Te Whatu Ora’s board and the appointment of a commissioner this question is being asked more and more often. One answer presented by the Government is the introduction of health targets, but is this business-like mentality at odds with our healthcare goals and rising need? Demand for healthcare has surged upwards in recent years, outpacing the rate of population growth that would normally account for this. Compared to other countries, New Zealand invests less money in its health system overall. Ill health has vast consequences for New Zealand and this paper calls for an apolitical, independent inquiry into how we fund our health system, including the true cost of health services and investigating the economic gains New Zealand would realise if health was viewed as an investment in people, instead of a cost of having people.

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Research Pasifika Medical Association Group, Web page URL will go live after the embargo lifts

Journal/
conference: NZ Medical Journal

Organisation/s: Association of Salaried Medical Specialists

Funder: N/A

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