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New health funding poor use of taxpayer money

8 July 2005
Media Release

New health funding poor use of taxpayer money

The IPA Council (Independent Practitioners Association Council) says an increase in funding for smaller PHOs announced yesterday by the Ministry of Health is a poor use of taxpayer dollars.

Dr Doug Baird, Chair of the IPA Council of NZ, says the funding looks like it had been calculated on the 'back of an envelope', because it made little economic sense.

“Giving more money for health administration sends the wrong message to the sector, and to the public, about health funding priorities.

“If the Government reduced its form-filling demands on PHOs and introduced efficiency incentives for all PHOs (large and small), it could save money.

“In particular, PHOs should be incentivised to work together in areas where there are clear economies of scale,” Dr Baird says.

He adds that it is disappointing that the Ministry of Health was not prepared to wait for advice on this issue that it had asked for from the PHO and Primary Health Care Taskforce.


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