Government Just Guessing When It Comes To Health – Report Says

The Government is guessing when it comes to comparing New
Zealand’s health spending to other countries a new
report commissioned by the Association of Salaried
Medical Specialists says.

The New Zealand’s health
financing and expenditure report reveals that for the past
seven years the Ministry of Health has not submitted data to
the OECD leaving the organisation to estimate our spending
and the estimates are incorrect.

“The OECD estimated
the New Zealand government spent 9.15 per cent of GDP on
health in 2022 and 8.83 per cent in 2023. However, our
research shows when OECD over estimates and the temporary
impact of COVID-19 are adjusted for, spending was more
likely around 7.5 per cent of GDP in 2022 and 8.15% in
2023,” Professor Tim Tenbensel says.

“New Zealand is
the only country not to have submitted its results to the
OECD.

“The problem is the Ministry of
Health uses the OECD data when it briefs incoming Ministers,
and in public communication. This is highly
misleading.”

Other findings in the report
include:

• There was a sustained period from 2013
  and leading up to the COVID-19 pandemic where New
  Zealand’s health expenditure as a % of GDP declined
  considerably, falling behind that of comparable
  countries.
• To keep pace with the 16 comparator
  countries between 2013 and 2019, New Zealand would have
  needed to spend approximately $9 billion more on running the
  health system (or more than $1 billion a year
  more).
• This underfunding explains the immense
  pressure New Zealand’s health workforce is under, with
  severe budget constraints leading to staffing shortages,
  hiring freezes, and stagnant wage growth.
• Political
  short termism and a focus on managing the books in an
  election cycle, has real consequences for the health
  services New Zealanders rely on.
• New Zealand’s
  tax-financed system is the best mechanism to fund health,
  the problem is more investment is needed.

As a
result of the report, the ASMS is calling
for:

• The Ministry of Health to resume filing
  returns on New Zealand health spending to the OECD and
  retrospectively provide returns for 2019
  onwards.
• For current OECD figures not to be used to
  compare New Zealand’s health spending to other countries
  as this is misleading.
• An extra $1 billion a year on
  top of cost pressures to be invested in the health system,
  over the next 4 years.
• The Ministry of Health to
  urgently commence policy work to identify how much funding
  is needed to most effectively to meet the health needs of
  New Zealanders.
• For renewed commitment to strategies
  to tackle the drivers of ill-health – tobacco, alcohol,
  health and safety, access to healthy
  food.

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