Health spending increase mostly old news

2.55pm - By SHARON LUNDY

Health received $443 million in new spending in this year's Budget, $400m of which had already been announced last year.

The new spending took its allocation of 2003-04 budget to $9.6 billion, or 20 per cent, of the total Budget.

Of that $9.6b, $400m was allocated for the first year of a three-year health funding package announced last year; $800m for next year and $1.2b in 2004-5 -- the equivalent of $400m new funding each year.

Health Minister Annette King today announced a further $535m had been allocated to take that package into a fourth year.

As well, $229m had been allocated for this year and $356m for next to cover anticipated demographic changes and accident costs.

"This level of new funding and the certainty it provides have been warmly welcomed by the health sector and will further move district health boards (DHBs) to their fair share of funding under the population based funding formula," Ms King said in a statement.

DHBs were now being funded at unprecedented levels but would still have to make difficult decisions, she said.

"But they now have the ability to work with the local communities to implement the Government's strategic priorities by using the available funding in the most appropriate ways."

DHBs' funding (last year in brackets):

* West Coast $64.6m ($50.5m)

* Canterbury $658.1m ($689.1m)

* South Canterbury $82.7m ($64.3m)

* Otago $292.6 ($304.1m)

* Southland $144.7m ($113m)

* Northland $245.5m ($189.2m)

* Waitemata $607.5m ($421.2m)

* Auckland $622.1 ($864.8m)

* Counties-Manukau $587.9m ($474.6m)

* Waikato $472.6m ($536.5m)

* Lakes $159.9m ($123.7m)

* Bay of Plenty $304.1m ($244.3m)

* Tairawhiti $88.1m ($67.6m)

* Taranaki $175.5m ($133.6m)

* Hawke's Bay $231.5m ($186.2m)

* Whanganui $114.7m ($93.8m)

* MidCentral $226.4m ($208m)

* Hutt $196.2m ($169.5m)

* Capital and Coast $341m ($407.1m)

* Wairarapa $65m ($47.4m)

* Nelson Marlborough $183.6m ($148.1m).

The Budget held few surprises in health as the Government had already made several announcements, including $19.8m to lower primary health care costs for those under 18 and elderly people enrolled in Primary Health Organisations (PHOs).

Specific funding commitments for 2003-04 include:

* $22.1m to meet DHBs' increased accident treatment costs;

* $15m for a sanitary works subsidy announced last year;

* $1.25m for counter terrorism preparedness;

* $1m to assess quality and safety in residential and community care;

* $600,000 for drug and alcohol services in Christchurch;

* $15,000 for health resources for the National Drug Intelligence Unit;

* $58m for the development, purchase and delivery of a meningococcal vaccine (part of a $200m, four-year programme announced last year).

Meanwhile, capital spending of $656.9m over four years, from last year, will allow for major building projects such as new hospital and ambulance services at the Auckland DHB, new hospitals in Wellington and Invercargill, and upgrades at Nelson and Christchurch Women's hospitals.

- NZPA