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Strengthening primary care capitation funding formula

4 December 2015

Targeting Resources: Strengthening New Zealand's primary care capitation funding formula

The PHO Alliance has today published the latest in its series of discussion documents Targeting Resources: Strengthening New Zealand's primary care capitation funding formula which is being submitted with its response to the Ministry of Health's consultation on the refresh of the New Zealand Health Strategy.

“Our motivation is simple; to appropriately target resources to where need is greatest, incentivise higher quality patient outcomes to improve the overall health of the New Zealand population and reduce the unacceptable inequalities which still exits in our society" says PHO Alliance chairman, John Ayling.

“Whilst we have a great primary care system, we know we cannot deliver essential new models of care within the existing financial policy settings. We need to address those areas of the current policy framework which are hamstringing providers and failing to address the unacceptable inequalities being experienced by our most vulnerable and high-needs patients.”

The latest publication follows the February 2015 publication A time to act: 7 actions which will help sustain the New Zealand health service for future generations and the May 2015 publication A time to act: Implementation solutions.

Mr Ayling believes changes need to be made to support integration and rising demand "The perceived failings of the current capitation formula are well documented. In this publication we propose a set of principles and factors for a new patient level, needs based formula which we believe should drive future funding allocations to primary care providers.

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"This publication is about the relative share of funding which providers should receive on behalf of their registered population. We do not comment on the very different debate regarding the appropriate level of overall funding for primary care."

The full series of PHO Alliance discussion documents are available to download from the PHO Alliance website here: http://www.phoalliance.org.nz/news

ENDS

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