This indispensable role is in the context of universal access and social equity being the cornerstones of our public health system. However, ever-increasing demand, ageing demographics and constrained resources have placed unprecedented pressure on the public system.
Waitlists for elective surgeries, diagnostic procedures and specialist appointments are the norm. For many patients, this delay can lead to deteriorating health conditions and reduced quality of life.
With a new minister appointed, it’s timely to emphasise private hospitals are an ally in this serious situation. They act as a pressure valve, absorbing some of this demand and enabling the public system to focus on emergency and high-priority cases.
Some numerical data corroborates this partnership. The collective membership of the New Zealand Private Surgical Hospitals Association (NZPSHA) undertakes over 224,000 surgical discharges a year. That represents 67% of all elective surgery performed in this country.
Private hospital facilities are not adversaries for the public system – they’re a complementary resource and the teams within them work collaboratively in the health system to get the best outcomes for patients.
For an alternative viewpoint: Private healthcare in NZ: We need a transparent, comprehensive and independent review – Art Nahill
Private hospitals are contracted to Health New Zealand – Te Whatu Ora and ACC for some procedures – in fact, they deliver over 90% of ACC’s elective services.
For Health NZ, the figure is about 10%.
All major private hospitals are members of the association – 34 organisations with 46 surgical facilities. NZPSHA members perform an extensive range of elective surgery, from cancer, complex neurosurgery and cardiothoracic surgery through to orthopaedic, ENT (ear, nose and throat), gynaecological services and minor procedures.
The existence of private hospitals also offers patients a choice: those with the means to do so or who have private health insurance can access treatment faster privately, alleviating some of the strain on public resources.
The Financial Services Council reports around 1.5 million Kiwis have private health insurance and $2.5 billion in claims were paid in the year to September 30, 2024.
Critics say patients’ ability to choose private surgery undermines equity, but rather it is optimising resource allocation. That criticism overlooks the reality that every patient treated privately is one fewer on the public waitlist.
Outsourcing surgical or diagnostic procedures to private hospitals is a cost-effective solution for the country. It not only facilitates people getting back to work and enables personal independence, but also maximises and utilises the capital investment and limited health resource a small country like ours has.
Private hospitals are committed to bringing innovation and efficiency to the healthcare landscape. NZPSHA fosters improvements in patient care through quality and operational practices which set benchmarks for the entire healthcare system.
For example, the association has an agreement in place with the Medical Council to support specialists’ competence, performance and conduct. There is also an agreement with the New Zealand Orthopaedic Association to facilitate the training of orthopaedic surgical trainees in private hospitals.
Private hospital facilities are not adversaries of the public system – they’re a complementary resource and the teams within them work collaboratively in the health system to get the best outcomes for patients. The clinicians and their teams are dedicated professionals looking after people who need healthcare; they just work under a different ownership.
Their care is patient-centric. They share the same public concerns for the health of New Zealanders (their friends and families).
They work to resolve challenges experienced in the health system. They have a shared investment in achieving the best health outcomes for all of us.
