Rural Practices Firmly Reject Government’s Offer Of Funding As Disgraceful

Along with representatives from other General Practices across the country, and their PHO colleagues, Hauora Taiwhenua Rural Health Network attended today’s primary health care funding negotiations with Health NZ and rejected the offer as being disrespectful.

Although Health New Zealand had independently calculated the annual increase in providing health care as being 5.58%, the Government only offered a 4% increase on baseline funding, with the suggestion that practices could increase their patient co-payments by a significantly higher margin to cover the gap in funding. This was viewed as the Government putting a further burden on the average person who is already experiencing a cost-of-living crisis, let alone the financially disadvantaged who can’t currently afford to visit their doctor. Once again, this will impact most on those in rural areas who are the greatest distance from healthcare and already struggle to pay for transport and the time off work needed to make the appointments – if they can get them!

The extra payments to recognise the increased costs of providing General Practice in remote rural areas and retaining medical staff in those areas was only increased by 4%. Payments for dealing with patients with complex health needs, those with high Māori populations and other flexible funding pools to meet community needs received no increase. The owners of the General Practices estimate that they need increases in excess of 14% to be financially viable in the long term.

Grant Davidson, CEO of Hauora Taiwhenua, noted that earlier this month Ministers Reti and Doocey their Government Policy Statement (GPS) that outlined their direction for health efforts over the next three years. In this document, there is a strong emphasis on improving the health outcomes of those groups with the highest health needs; including Māori, Pacific Peoples, Disabled, Women and those living in Rural Communities. There is a strong focus on health systems delivered closer to home and a directive to ensure a health workforce is retained, particularly in geographically isolated areas. Davidson said that “this funding offer is a complete fail on behalf of Health NZ and its Board, who have the job of implementing the GPS and the Pae Ora Healthy Future Act, both of which placed a greater emphasis on General Practice.”

The Government will now progress with a compulsory variation to General Practice funding, implementing their payment options even though they have been rejected.

Chair of Hauora Taiwhenua, Dr Fiona Bolden, stated that “this ongoing lack of funding for General Practice in rural areas will see further reduction in services in those areas. This will lead to more practices closing, no afterhours and emergency response, and increased preventable deaths, particularly among the most vulnerable families who are often isolated Māori with low incomes.”

She concluded that “this is the latest slap in the face to hard-working and dedicated health professionals across rural New Zealand who are not seen to be supported by a Coalition Government who draw votes from these communities. It is a time when a Government should be building morale, trust and hope in their rural health system rather than taking it away.”

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