Hon David Cunliffe
Minister of Health

9 December 2008 Media Statement

More money for disability sector.

Funding for residential care in the disability sector will increase by $26 million this year, making claims of a funding freeze totally inaccurate.

This increase is part of an additional $76 million that has been put into providing residential care services since 2004, Minister of Health David Cunliffe said.

In this financial year $338 million is targeted for resident care.

“Recent increases in costs have been driven by a needs re-assessment process that proactively seeks to ensure that every client has what they need.

As an interim measure, per unit care costs have been stabilised to manage within budget.

“This Government is committed to ensuring meeting client needs rather than a one size fits all approach. We are working with providers to get the very best value for this Government’s increased investment in residential care.”

He said while cost of living adjustments have been postponed until early 2008 providers had received more money through the revaluation of individual client needs.

“Providers are still receiving increases however these increases have come from looking at meeting the needs of clients rather than through a general increment increase.”

Mr Cunliffe said it was also important to note that funding continues to be available for services for any new clients.

“This Government understands the need for people living with disabilities and their families to have access to a well resourced service that takes into account the needs of individuals.”

Mr Cunliffe also dismissed the National Party’s claims about bureaucracy.

“Under this Labour-led Government nursing numbers have risen by 4000, doctors by 1200 and physiotherapists, pharmacists and other allied health professionals by 600.”

“Mr Ryall’s latest outburst about an army of bureaucrats running health is a repeat of his most tired cliché. It is a dishonest attempt to create a perception that National will ‘fix’ something, when the opposite is true – they are hell-bent on breaking good public health services.

“Last September they revealed their true colours when they ‘forgot’ to tell people they will let the market decide what health advice is worth.”

“The reality is under this Government more money is going into health and that money has increased wages, reduced the cost of seeing a GP, reduced the cost of prescriptions and increased elective surgery.”

Funding for residential care sector.

2004/05 $270 Million
2005/06 $294 Million (8.9 per cent increase on 04/05)
2006/07 $320 Million (8.8 per cent increase on 05/06)
Forecast expenditure 2007/08 - $346 Million (8.1 per cent increase on 06/07)

ENDS

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