The College's view on the 2018 budget

College news
18 May 2018

The Government has announced a range of measures in the 2018 Budget which the College welcomes as positive steps that will help high-needs patients, however we are acutely conscious that this is likely to have an impact on our members’ already-high workload.

We have issued a media release on the Budget, and College President Tim Malloy's comments have been reported by several outlets about the Budget (for example Stuff, the Otago Daily Times and NZ Doctor).

Here, we give you our initial analysis of the announcements. We welcome members feedback on the Budget; please share your views through clicking on this link.

We will continue to keep members informed as we engage in the review of primary care funding.


Cost of GP visits

Surveys show that over half a million New Zealanders chose not to see a GP because of cost. We know that some people do visit an emergency department because they can’t afford $40–$70 to see a GP.

Yesterday’s Budget announcement to address this included:

  • Extending eligibility for the Community Services Card to all those receiving the accommodation supplement or income-related rent subsidy
  • Extending access to very low-cost GP visits to all Community Services Card holders – an estimated 540,000 people, making doctor visits approximately $20 to $30 cheaper for them.
These two initiatives will require $362.7 million of new funding and will have a major impact on people’s health and wellbeing.

Our initial response is that these changes, which we understand will come into effect after 1 December 2018, will mean a greater number of New Zealanders will be eligible for access to low-cost GP visits, and therefore we welcome this change.

However, these changes will undoubtedly mean more patients are seeking general practice appointments. We are looking forward to further detail from the Government about how the impact on practices will be monitored and managed. We would welcome your feedback on the impact this will have.

We are also extending free GP visits and prescriptions to children under the age of 14 – an estimated 56,000 young people – so that cost is not a consideration for parents. That is an investment of an extra $22.0 million from the Government over four years.

As we said when this was first announced in the Labour–New Zealand First coalition agreement, this will be welcomed by families across New Zealand, but this must be fully-resourced so general practice can deliver this sustainably. This change is also highly likely to mean greater demand for general practice appointments. We will be looking to the Ministry to set out how more details about monitoring this demand and the associated funding streams.

These announcements are made in the ministerial release by health minister Dr David Clark, Helping more Kiwis get the medical care they need.


Review of primary care funding

There was no announcement in the Budget about a review of primary care funding. However, we have been advised by officials that there is likely to be an announcement about a review of general practice funding within the next two weeks.

Our view that this is a high priority. Coming up with a funding model that can work for everyone, including patients and GPs, will be a complicated endeavour and will likely take some time to get right. We feel the review needs to start as a matter of urgency.


GP training

In the Vote Health appropriation, the Government has announced that its budget standard for 2018–19 regarding the number of first year general practitioner trainees supported by the Ministry of Health funding is equal to or greater than 180, which is the same as the final budgeted statement for 2017–18.

We take this to be a departure from Labour’s election pledge which was ‘From 1 July 2018, Labour will […] increas[e] funding for GP training places, taking the intake to 300 per year.’

We believe this is not enough to meet expected demand on general practice in the coming years. We continue to call for the training of 300 new GPs a year, which we feel will result in real benefits to patients.

Now, more than ever, members' contribution to our annual workforce survey will be important as we build our case for increasing the number of GP trainee places. College members will receive an email inviting your response to this survey within the next fortnight.


Your views on this Budget

We’d welcome members' views specifically on the Government’s 2018 Budget. Please share your views through the link below.

Share your views