Budget 2010: Biggest increase may still not be enough

The Council of Trade Unions says public health patients are in for a tough year. Photo / Getty Images

Health gets the biggest rise in the Budget, but at $512 million, it is only marginally above the level that officials calculate is needed to keep up with inflation and population growth.

And it is well below the $559 million that the Council of Trade Unions calculated was needed for the publicly-funded health sector just to stand still, leading to warnings of a tough year for patients.

The boost money takes Vote Health to just under $13.574 billion for 2010/11.

Health Minister Tony Ryall said last night that, including the rise for next year, health would receive an extra $2.1 billion over the next four years. This included $1.77 billion of new operating funding, $186 million from "reprioritised" spending, and $142 million for capital investment.

"This is a significant funding increase in light of the continuing difficult economic situation," Mr Ryall said.

"Vote Health is also the single biggest item of new operating spending in Budget 2010, reflecting this Government's commitment to maintain and improve front line health services for New Zealanders."

The reprioritised funding included money saved from:

A lower-than-expected uptake of human papilloma virus vaccination.

The reconstruction of the school dental service.

Staff cuts at the Ministry of Health.

Contracts that had not been renewed, such as one for a sexual health advertising campaign.

Cuts to the performance management programme for primary health organisations.

Mr Ryall said ministry officials had advised that to keep up with population growth and inflation, Vote Health needed to rise by $507 million. Of the $512 million increase in health, district health boards were being given $407 million, which was in line with what they needed for inflation and population growth.

Initiatives he announced or confirmed last night, with funding stated for the next four years, included an extra $51.5 million for elective surgery; $109 million for primary care; $40 million more for mental health services; $8 million to fund 20 new medical training places from next year; and an extra $80 million for medicines.

But the senior doctors' union executive director, Ian Powell, said: "It is going to be a tough year for patients and for senior doctors struggling to provide them with accessible quality healthcare.

"Funding for district health boards is short by at least $100 million of what is needed to maintain existing services at their existing level, let alone improving services."

The Medical Association said there was good and bad in the Budget for health.

It said the increased funding was not enough to keep up. "[It] will lead to some patients missing out on essential health services," said association deputy chairman Dr Paul Ockelford.

"We are however pleased to see that the funding shortfall is not as dramatic as we'd anticipated.

Green Party health spokesman Kevin Hague said: "This is a continuation of the approach of starving public health programmes and primary care - which may not show up in outcomes for some years - to channel funds into secondary care."