Primary care likely focus of health cash injection

11.45 am

Cash-strapped hospitals under pressure to lift wages for nurses and other medical staff don't appear to be set for a major hand-out when the Government announces a massive health funding boost later today.

Health Minister Annette King is expected to announce an injection of around $1.5 billion over the next three years.

Mrs King and other ministers have emphasised the need to give district health boards (DHBs) some certainty of their funding so they can plan properly.

Mrs King said the main purpose of the new money would be to help out primary care services, such as visits to GPs and district nurses.

"It is a three-year funding package that is going to have an emphasis on primary health care and the aim of the primary health care package is to provide the early funding to those most in need, building it up over time".

The Government has budgeted $815 million for new spending in 2002-03, with the health sector predicted to swallow about half of that, maybe more.

Today's announcement will include a three-year programme of higher payments to debt-laden district health boards under pressure from service and wage costs.

Boards had asked for certainty and the package had been agreed on after talks with Finance Minister Michael Cullen, Mrs King told delegates at a workshop on health at the recent Labour Party conference.

The National party claims pressure on the health system has forced the Government to bring forward the announcement that it would have otherwise been made in the budget next May.

But Mrs King said the health budget had, for years, been announced in November or December.

"It's because the health sector needs around four or five months before the start of the new financial year to prepare."

While primary care will be emphasised, the DHBs will also get some relief as they face industrial actions from a range of professions.

Prime Minister Helen Clark refused to discuss details but said the announcement would be seen as a "good response" to some of the pressure coming around the country on the health sector.

National health spokesman Roger Sowry said the spending announcement was the Government "buying a comfort level for the next election".

"The Government has had to act because the public is so despondent that it has allowed health services to get to a crisis point.

"The devil in this announcement will be in the detail."

Mrs King's suggestion that a sizeable chunk of the funding would go towards primary care indicated the situation for cash-strapped hospitals wouldn't get any better, Mr Sowry said in a statement.

"Waiting lists will get longer and hospitals will continue to run up bigger deficits by the week."

- NZPA