Primary Care Unanimously Reject Government Funding Offer

Primary Health Organisations (PHOs) represented by General Practice New Zealand (GPNZ), Te Kāhui Hauora Māori PHOs and those appointed to represent contracted providers (general practices) have strongly rejected Te Whatu Ora’s increase of 4 percent to core general practice funding.

Despite the resounding rejection and multiple concerns put forward at this week’s PHO Services Agreement Amendment Protocol (PSAAP) meeting, Health New Zealand | Te Whatu Ora has confirmed the increase will be implemented via a compulsory variation to payments.

“We’re already on record regarding how inadequate the offer of 4 per cent is. It fails to cover the costs of providing essential services, with cost pressures independently assessed as being 5.88 per cent, and it does absolutely nothing to address the history of chronic underfunding,” says Chair of GPNZ and Porirua-based Specialist General Practitioner, Dr Bryan Betty. “This just exacerbates the dire situation already facing general practice and risks further compromising the care we can offer to our patients.”

Further impacting essential frontline services, there will be no increase in the funding provided for health promotion, services to increase access (SIA) and Care Plus funding which is particularly used to support services for the most high needs populations.

The only option for many practices is to bridge the funding gap left by the government through increasing fees to patients. Te Whatu Ora will allow practices to increase those patient co-payments by 7.76 per cent alongside its 4 per cent increase.

“We are in a cost-of living crisis. The absolutely last thing we want is for costs to shift to the patient but sadly that is what is we expect to see happen to prevent the collapse of some general practice services altogether.”

GPNZ will continue to advocate for the solutions we know will enable practices not just to recover, but to thrive and deliver the care they so desperately want to provide for their communities. These solutions are documented in our Securing sustainable general practice in Aotearoa publication, which has been endorsed by the General Practice Leaders Forum.

“In essence we need that long-awaited new funding model – one that will tackle inequity and truly recognise all drivers of demand and complexity. We also need initiatives to expand, develop and truly value a multi-disciplinary primary care workforce, and support for technology as an enabler.”

Budget 2025 must take decisive action. The challenge we put to our government is to invest at a level that has never been available to primary care providers before.

“Investing in primary care is the single best thing the government can do to achieve the objectives and expectations they have outlined in their policy statement on health because the biggest improvements in population health and the greatest value from health spending comes from people having convenient access to high quality primary care.”

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