Log in

No account? Create an account

Soon Lee

Previous Entry Share Next Entry
03:44 pm: The New Zealand healthcare system going the way of the British?
What with reduced funding in real terms, burn-out of healthcare workers & opening the door to PPPs (Public Private Partnerships) it's looking grim.

In New Zealand, this same door is already ajar, as Ian Powell of the Association of Salaried Medical Specialists (ASMS) recently pointed out, in the organisation’s July newsletter:

Partly through ideology and partly through the shortsighted incentive of short term gain, the Government is pressuring DHBs that require major capital works development to adopt a funding arrangement similar to Private Public Partnerships in England that will worsen DHBs finances. The first example is the small new $12 million ‘integrated family health centre’ in Westport.

The Government, through its misnamed partnership group, is pressuring West Coast DHB to adopt a method of funding branded as ‘capital recycling’ that is a PPP by another name. The practical effect is that the DHB is likely to pay between $750,000 to $1,000,000 annually for about the next 34 years more than would it would have to under the normal way (Government loans repaid at a lower interest rate). In order to make the Government’s books look good, the DHB’s financial position has to worsen, thereby increasing the likelihood of deficits.

Imagine if this new system of funding continues with the next and much bigger new outpatient facility as part of the post-earthquake Christchurch Hospital rebuild. This new facility could end up costing somewhere in the vicinity of $100 million which would then involve Canterbury DHB incurring extra annual costs of up to say $100 million. In fact, one does not have to imagine anything. It has already been acknowledged that ‘capital recycling’ is on the cards…

I've disabled LJ comments. Please come comment at DW:

Tags: , ,
Powered by LiveJournal.com