Health
We saw the start of health system transformation in 2022 as Te Whatu Ora – Health New Zealand, and Te Aka Whai Ora – Māori Health Authority assumed the functions of 20 District Health Boards (DHBs). To enable the success of this new system, Budget 2022 provided record levels of health investment, and for the first time, two years of funding was announced at once to enable longer term planning. This package included sufficient funding to remediate historic DHBs deficits and gave the certainty for health entities to share resources, support new models of care, and invest for the longer-term. This two-year approach was enabled by charging pre-commitments against both the Budget 2022 allowance and the Budget 2023 allowance.
There has been marked progress over the last 12 months in delivering against reform:
- Budget 2022’s record commitment will enable an investment of over $1 billion in increasing wages and staff numbers this financial year, including $63 million for progressing safe staffing. This investment will focus on areas facing greatest demand and allows for an additional 500 new nurses.
- By 30 June 2024, we expect no patients (excluding those waiting for orthopaedic surgery) to be waiting longer than 12 months for treatment, from the date a decision to treat is made. This will be achieved through investment in timely and effective provision of hospital and specialist services.
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Baseline funding has been reallocated to support the health needs of New Zealanders:
- $99 million has been put towards winter 2023 initiatives
- $118 million allocated to reduce waiting lists by freeing up inpatient hospital beds
- $20 million in spending to improve health equity for Māori and Pacific peoples.
- Savings are starting to be realised through the elimination of the duplicated functions of DHBs, with $10 million in savings already released from the disestablishment of executive leadership roles of the former District Health Boards, on top of other savings in areas such as insurance.
- More than $2.2 billion has been appropriated to remediate historical non-compliance with the Holidays Act. Current staff are expected to be remediated by 30 June 2024, with payments beginning next quarter. Payments to former staff are expected to begin by the end of this year.