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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