Disappointing capitation moves us further away from Pae Ora goals

by Justin Butcher, CEO, Pinnacle

With the annual increase in funding for general practices falling well short of expectations, it’s difficult not to be cynical about the future of primary healthcare in Aotearoa New Zealand.

Like our counterparts across the sector, Pinnacle is deeply disappointed by the four per cent (4%) capitation increase offered by Te Whatu Ora. This minimal increase falls far short of the actual cost pressures faced by general practices and represents a missed opportunity to address the ongoing underfunding of primary healthcare in New Zealand.

Shifting the burden of underfunding to patients through increased co-payments risks widening the already-significant barriers to access at a time whānau are also struggling with a cost-of-living crisis. This is likely to worsen existing health inequities, move us even further away from achieving the goals of Pae Ora (Healthy Futures), and threaten the sustainability of some essential frontline services.

We strongly support the calls from sector leaders for a more substantial funding increase that is at least in line with cost pressures. Four per cent will barely maintain the status quo, let alone ensure the sustainability of general practice and continued access to high-quality primary healthcare for all New Zealanders.

With approximately half of Pinnacle’s network in rural areas, this underwhelming increase is particularly concerning for rural practices, which already face unique challenges in attracting and retaining healthcare professionals. The lack of a proportionate increase in rural support funding further disadvantages these essential providers, potentially limiting access to quality care for rural whānau and further reducing the appeal of health professionals to work in rural practices.

Oftentimes it feels as though I’m banging the same drum endlessly, but from deep in some remote forest - however here I am, banging it again! Chronic underfunding makes it increasingly difficult for general practices to compete for skilled staff. This has already translated to immense strain on healthcare professionals in primary care and has led to a workforce crisis, further impacting patient access to care.

I want to bring the thinking back to the ambitious, potentially naïve but at onetime seemingly reachable goals of Pae Ora and the transformation of our health system. Pae Ora gave us the framework for a healthcare system that was more equitable, sustainable, responsive and accessible for all New Zealanders, but we simply cannot do it without the funding! We need a multi-pronged approach to address the funding shortfall. We strongly urge Te Whatu Ora to consider alternative solutions such as targeted funding for high-needs areas and streamlining administrative burdens on practices. It’s critical to put the kōrero to raise the uplift to 5.88 per cent back on the table, while we still can.