GPs hit out at ‘inadequate’ Government funding proposal

Monday, 1 July 2024

General Practice NZ chairperson Bryan Betty says doctors will be rejecting the funding proposal put forward by Te Whatu Ora last week. (File photo)

GPs are rejecting a funding proposal they say is inadequate and places the burden of keeping up with inflation on patients.

Te Whatu Ora released the proposal after a meeting with PHO Services Agreement Amendment Protocol (PSAAP) members about increases to capitation funding rates earlier this month.

The proposal suggests Te Whatu Ora pay GPs 4% more, and that practices increase their fees by 7.76% to get to the revenue increase of 5.88% that the practices need to keep up with inflation.

In a statement to PSAAP members, Te Whatu Ora acknowledged their concerns and agreed to a 20-day consultation period.

There had been no increase in funding for primary health organisations (PHOs) who supported general practice.

In an information paper, Health NZ living well director Martin Hefford said a number of pricing factors were considered for the proposed uplift.

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“In particular, we are aware of the significant financial and workforce pressures on general practice sustainability,” he said.

Te Whatu Ora considered a recent paper detailing changes in costs during 2023, funding received through the 2024 Budget, risks related to a lack of access to timely GP care, the sustainability of very low cost practices, and the need to preserve access for low-income Kiwis, Hefford said.

General Practice NZ chairperson Bryan Betty said the sector was disappointed with the “inadequate” proposal and would be rejecting it.

WellSouth primary health organisation chief executive Andrew Swanson-Dobbs says the funding proposal sends the message that the role of GPs is undervalued. (File photo)

“Essentially, it looks like patients will have to make up the difference in terms of keeping abreast of inflation,” he said.

The proposal did nothing to address the challenges created by underfunding and there was still a strong expectation that government would work to solve them, Betty said.

WellSouth chief executive and PSAAP member Andrew Swanson-Dobbs said he was particularly concerned about the impact the proposal would have on rural areas.

“This will not address our Southern challenges; our large rural population, our workforce pressures, and like other regions, our continued inequitable health outcomes,” he said.

He encouraged GPs to speak up during the consultation period.

“While we have long raised our issues to HNZ, we now have an important opportunity to have a say. I encourage and welcome feedback from practices to support further negotiation for the capitation uplift,” he said.

“General practice is at the heart of community healthcare and the often the first port of call for people.

“It is chronically underfunded, and I feel that the decisions made by the HNZ Board signal a lack of commitment to addressing that underfunding.”