GP Clinics to Receive $120.6m Boost Under New Funding Model

Patient costs for GP visits will remain at the same level as last year, offering some certainty for families already dealing with rising household expenses.

General practice clinics across New Zealand are set to receive a major funding increase as the Government rolls out a new package designed to improve access to primary healthcare. Health Minister Simeon Brown says the agreement will provide an extra $120.6 million annually to support frontline GP services and help more people secure appointments when they need them.

The funding package received strong backing from the sector, with 86 per cent of GP clinics voting in favour. The Government says the investment will help practices remain financially sustainable, increase appointment availability, and continue delivering care within local communities.

Patient costs for GP visits will remain at the same level as last year, offering some certainty for families already dealing with rising household expenses.

New formula moves beyond age and gender

A key part of the package is a significant change to the way funding is distributed. From July 1, 2026, GP clinics will be funded using a new formula that takes a broader view of patient needs. For more than two decades, funding has largely been based on the age and sex of enrolled patients. Under the updated system, additional factors such as multiple long-term health conditions, rural location, and levels of socioeconomic deprivation will be considered when determining funding levels.

The Government says this approach will direct more resources toward clinics serving populations with higher healthcare needs, creating a closer link between funding and the realities faced by patients and providers.

Rural practices and performance incentives gain support

Rural communities are expected to see some of the biggest benefits from the changes. Clinics operating in remote areas often face higher operating costs, workforce pressures, and greater demand for healthcare services. Alongside rurality being included in the funding formula, 22 rural practices that currently miss out on rural funding support will become eligible for additional top-up payments.

The package also introduces incentives for clinics that achieve stronger health outcomes. Practices will be rewarded for improving immunisation rates, increasing participation in cancer screening programmes, and supporting better management of long-term health conditions.

Brown says strengthening primary care remains a central part of the Government's effort to improve the wider health system. By helping people access treatment earlier, the Government expects fewer patients will require hospital care, easing pressure on hospitals while improving health outcomes across the country.