$16.68 Billion Boost for Frontline Health Services in Budget 2024

Dr. Reti highlighted that the $1.77 billion increase to Pharmac’s budget was necessitated by funding shortfalls left by the previous Government.

Health Minister Dr. Shane Reti has announced a substantial funding boost of $16.68 billion for the health sector across three Budgets, emphasizing the Government's commitment to enhancing frontline services such as emergency departments, primary care, medicines, and public health to ensure New Zealanders receive the healthcare they deserve.

“Our Government has set ambitious targets for the health sector. We are committed to improving the frontline health services that New Zealanders rely on, with shorter wait times for assessment and treatment,” Dr. Reti stated.

“We want the health sector to plan for the future with confidence, knowing our Government will always prioritize increased investment for the services it delivers. That’s why we are confirming today not just health funding increases from this Budget, but pre-commitments for additional funding from our next two Budgets as well.”

Key Investments in Budget 2024

The new health investments in Budget 2024 over four years include:

Hospital and Specialist Services: $3.44 billion through Health New Zealand

Primary, Community, and Public Health: $2.12 billion through Health New Zealand

Pharmac: $1.77 billion to address the shortfall left by Labour and ensure access to essential medicines

Breast Screening: $31.2 million to extend free breast screening to an additional 60,000 women each year

Emergency Department Security: $31 million for increased security to ensure safety for patients and staff

Medical Training: $22 million to train 25 more doctors each year

Mental Health Services: $24 million for free mental health counseling services through Gumboot Friday and $9.7 million to establish a National Mental Health and Addiction Community Sector Innovation Fund

Support for Health Workers and Infrastructure

Dr. Reti emphasized the importance of supporting frontline healthcare workers, noting a significant increase in the workforce with more than 1,000 new full-time equivalent (FTE) nursing roles and over 80 senior medical officer FTEs added in early 2024. The Government is committed to retaining these essential workers.

In addition to the operating and capital investments, Budget 2024 provides $103.1 million to support health infrastructure, complementing the $11.6 billion already allocated for infrastructure projects within the health sector.

Prescription Co-payment Reinstatement

To ensure resources are targeted to those most in need, the $5 prescription co-payment will be reinstated for individuals aged 14 and over. This measure aims to generate savings that will help fund the provision of essential medicines. Prescriptions will remain free for those with community services cards, individuals under 14, and people aged 65 and over.

Future Funding and Contingencies

Dr. Reti highlighted that the $1.77 billion increase to Pharmac’s budget was necessitated by funding shortfalls left by the previous Government. The increased budget will help expand access to medicines, including cancer treatments.

The Budget also includes contingency funding for potential pay equity settlements between employees and non-Government healthcare providers, ensuring ongoing support without committing to specific amounts in advance of settlements.

“We want a health system that works - giving New Zealanders the right care, when they need it. This means we’re focusing on workforce, delivery of our clear targets for improved care, building the right infrastructure, and ongoing financial sustainability,” Dr. Reti concluded.