New Zealand’s health system is in crisis. From emergency department overcrowding and delayed elective procedures to crumbling infrastructure and staff shortages, the challenges are mounting.
Nowhere is this more apparent than in primary healthcare, where general practices are struggling to meet community needs. Soon, communities will no longer have the choice to see a local GP face to face.
General practice receives only 3% of the $30 billion health budget – a figure that hasn’t kept pace with rising costs or the evolving needs of our growing population. A recent GenPro survey revealed the toll: rising operational expenses, high patient demand and staff shortages are pushing practices to the brink.
The consequences are clear. Patients face long waits for appointments, dwindling access to after-hours care and increasing frustration in finding a GP.
A system stuck in the past
At the core of this crisis lies an outdated funding model.
The capitation system, which determines how general practices are funded, hasn’t been meaningfully updated in 20 years. Despite numerous reviews and the widely supported recommendations of the 2022 Sapere report, little progress has been made. This lack of action perpetuates inequities and undermines the sustainability of primary care.
In addition to the outdated funding model, general practice is saddled with unfair contracts without the power to negotiate. Health New Zealand Te Whatu Ora unilaterally decides the increase in funding and the ability of GPs to increase their fees is capped. GenPro has laid a complaint with the Commerce Commission with respect to these issues.
Political parties have acknowledged the issue. The National Party pledged to explore funding reforms in its first year. Act promised a 13% funding increase for GPs. New Zealand First supported reviewing the funding model to ensure it is fit for purpose. Yet these promises remain unfulfilled.
Without decisive action, the health workforce crisis will deepen, exacerbating waiting lists, delays and patient dissatisfaction.
An opportunity for real change
The 2025 Budget presents a chance to reverse this decline. Greater investment in primary care is not only a moral imperative; it’s a practical one.
Strengthening frontline services reduces pressure on emergency departments and hospitals, leading to better outcomes for patients and more efficient use of resources. Updating the funding model to reflect modern health needs and cost realities is a crucial first step.
By investing in general practice service, the Government supports access to in-person care and helps people choose the care that best meets their needs within their communities.
Investment in telehealth and alternative health workforces appear to be a quick fix, but they will not help improve emergency department waiting times and will only cost the system more.
The Government needs to invest in on-the-ground general practice because investing in these quick-fix schemes as an alternative to investing in community-based general practice services will mean people lose their choice to have a local GP.
The Government promised last year in its Budget Policy Statement to improve health outcomes. This commitment must translate into tangible action. And the Government’s health policy statement says access to healthcare services should be “prompt and efficient”. Let’s make that happen.
Health Minister Simeon Brown and Health NZ Commissioner Dr Lester Levy have a responsibility to collaborate with stakeholders and deliver an implementation plan within the year. GenPro stands ready to assist in crafting these solutions.
A call to action
Budget ministers, New Zealanders need a healthcare system that works for everyone. The 2025 Budget must make health its defining theme, with a clear focus on strengthening primary care.
This is not only an investment in infrastructure or services – it’s an investment in the wellbeing of our communities.
Let’s ensure every New Zealander has access to the care they deserve. The time for half-measures is over. Let 2025 be the year we put health first.
