Three-year health funding package announced

  • Annette King
Health

Health Minister Annette King today announced a three-year funding package to allow District Health Boards to plan health and disability services with certainty.

Mrs King said that over the next three financial years the Government would put a guaranteed total of almost $3 billion extra into health and disability services.

The package, which sets out all the additional funding for Vote Health over the next three years, comprises $400 million in new funding for health next year, $800 million the following year and $1.2 billion the year after that (the equivalent of $400 million of new funding each year).

There is also new funding to meet extra demand for health services from population growth — $101 million in 2002/03, $197 million in 2003/04 and $295 million in 2004/05 (the equivalent of $96 million and $98 million of new funding in 2003/04 and 2004/05 respectively).

“This all adds up to an extremely significant commitment, and it is the first time any government has committed to a three-year funding path of such magnitude.

“I’m announcing the funding now to allow DHBs to set about genuinely planning service delivery in a strategic way. No longer will boards have to live hand-to-mouth from year to year, not knowing what funding will be. They will know what is coming, and they must manage and plan according to that certainty.”

Mrs King said a significant funding package for Primary Health Care was included in the overall package. “Some details are still being discussed, but this means we can get on with implementing the Primary Health Care Strategy in 2002/03.

“Investing in primary health care is the most likely way to improve our health status significantly and to reduce health inequalities. New primary health organisations that provide services for groups in most urgent need, such as Maori, Pacific and low-income groups, will receive the most assistance.

“DHB chairs are being told later today of their broad allocations. The package will allow elimination of DHB deficits over the three years, but DHBs must manage their cost growth, including wage pressures, to live within this total package.”