Healthcare in New Zealand explained

The healthcare system of New Zealand has undergone significant changes throughout the past several decades. From an essentially fully public system based on the Social Security Act 1938, reforms have introduced market and health insurance elements primarily since the 1980s, creating a mixed public-private system for delivering healthcare.[1] [2]

In 2012, New Zealand spent 8.7% of GDP on healthcare, or US$3,929 per capita. Of that, approximately 77% was government expenditure.[7] In a 2010 study, New Zealand was shown to have the lowest level of medication use in 14 developed countries (i.e. used least medicines overall), and also spent the lowest amount on healthcare amongst the same list of countries, with US$2510 ($3460) per capita, compared to the United States at US$7290.[8] [9]

History of healthcare

Until well after European contact Māori used natural medicines and spiritual healing. Among the European settlers, professional medical care was expensive and most people diagnosed themselves or sought alternative treatment.[10] In the mid 19th century New Zealand's first public hospitals were created by Governor George Grey and were available for those who could not afford a private doctor.[11] [12]

The Public Health Act 1872 introduced local authority health boards. These were funded primarily by the local ratepayers and subsidised by the national government. There was still a large reliance on private charity to make up any shortfall. From 1909 poorer districts were given disproportionately more funding from the national government. In 1938, the Social Security Act from the First Labour Government attempted to provide government funded healthcare to all. A free health system, with hospital and other health services universally available to all New Zealanders was the vision behind the Social Security Act 1938. This was never fully realised due to ongoing disputes between the medical profession and the Government. Health services evolved as a dual system of public and private health care subsidised through a series of arrangements known as the General Medical Service (GMS) benefits established in 1941. This remained largely unchanged until the late 1970s. From 1984 to 1993 the Labour then National governments introduced major changes designed to get area health boards (later Crown health enterprises) to imitate market forces.[13] User charges were introduced for prescriptions in February 1985 but broader controversial policies introduced by the Fourth National Government between 1991 and 1993 effectively ended largely free provision of primary healthcare, such services being targeted on the basis of income while Community Service Cards (introduced on 1 February 1992) provided additional support.[14] [15] [16] Public hospital charges of $50 for overnight stays were briefly implemented but was later abandoned as the 1993 election approached.[17]

New Zealand has had numerous public health campaigns and initiatives.[18] Children were given free milk between 1937 and 1967 but these were abolished due to budgetary constraints,[19] fluoride is added most drinking water in the country and there have been many anti-drinking (from the 1870s) and anti-smoking campaigns (from the 1960s).[20] [21]

Restructuring of the healthcare system

On 21 April 2021, Health Minister Andrew Little announced a plan to centralise healthcare, abolishing all 20 District Health Boards and creating a single health organisation called Health New Zealand, in a plan to centralise New Zealand's fragmented healthcare system and end what has been characterised as a "postcode lottery" of care. Health New Zealand would be modelled after the United Kingdom's National Health Service. The Ministry of Health also created a Māori Health Authority with spending power, and a new Public Health Authority to centralise public health work.[22] [23]

In October 2021, the Sixth Labour Government introduced the Pae Ora (Healthy Futures) Bill to replace the country's district health boards with the new Health NZ. The legislation also formally establishes the Māori Health Authority and a new public health agency. The Ministry of Health will also play a stewardship role within the reformed health system.[24] The bill passed its third reading on 7 June 2022.[25]

In November 2023 research showed that children with serious trauma were twice as likely to die in hospital compared to Victoria, Australia.[26]

Structure

At present, the Ministry of Health is responsible for the oversight and funding of the twenty district health boards (DHBs). These are responsible for organising healthcare in the district and meeting the standards set by the Ministry of Health. Twenty-one DHBs came into being on 1 January 2001 with Southland and Otago DHBs merging into Southern DHB on 1 May 2010.

The boards for each district health board are elected in elections held every three years, with the exception of one of the eight board members, who is appointed by the Ministry of Health.

The DHBs oversee the forty-six primary health organisations established throughout the country. These were first set up in July 2002, with a mandate to focus on the health of communities. Originally there were 81 of these, but this has been reduced down to 46 in 2008. They are funded by DHBs, and are required to be entirely non-profit, democratic bodies that are responsive to their communities' needs. Almost all New Zealanders are enrolled in a PHO, as there are financial incentives for the patients to become enrolled.

The Northern Region DHBs also use shared services provided by the Northern DHB Support Agency and HealthAlliance. These services deliver region-wide health initiatives and shared IT services and logistics.

In Christchurch, the Canterbury District Health Board has been successful in redesigning services to reduce hospital use. Some of this transformation was precipitated by the 2010 and 2011 earthquakes when several healthcare buildings were damaged or destroyed, and also 2019 mosque massacre as the several healthcare also response to the terrorist attacks. It now has lower rates of acute medical admissions, low average lengths of stay, fewer readmissions in acute care, fewer cancelled planned admissions and more conditions treated out of hospital.[27]

Public vs. private payment

Hospital and specialist care in New Zealand is totally covered by the government if the patient is referred by a general or family practitioner and this is funded from government expenditure (approx. 77%).[7] Private payment by individuals also plays an important role in the overall system although the cost of these payments are comparatively minor. Those earning less than certain amounts, depending on the number of dependents in their household, can qualify for a Community Services Card (CSC). This reduces the cost of after-hours doctors' visits, and prescription fees, as well as the cost of visits to a person's regular doctor.

Injuries which occur as a result of "accidents", ranging from minor to major physical but including psychological trauma from sexual abuse are generally covered by the Accident Compensation Corporation (ACC). This may include coverage for doctors visits and lump-sum payments.

Waiting lists

In New Zealand's public health system it is typical for medical appointments, particularly surgeries to have a waiting list. District Health Boards are typical judged in the media and by government in part based on the length of these lists. In 2016, it was inferred that many people required surgery but were not put on the official list.[28] Research projected that of all the people who had been told they needed surgery less than half were on the official list. However, the main concern noted by health industry observers was the overall increase in waiting time, about 304 days.[29]

Telehealth

In 2018 the Northern Region district health boards, Northland, Waitemata, Auckland and Counties Manukau developed a telehealth system with a unified video, audio, content sharing and chat platform provided by Zoom Video Communications which is intended to lead to a more integrated health system in the Northern Region. This should enable real-time consultations between clinicians in hospital, primary care and the community, and between patients and their care providers.[30]

Healthcare organisations

The list of well-known Healthcare organisations in New Zealand are:[31] – Geneva Healthcare– Counties Manukau Homecare Trust– Healthcare of New Zealand Holdings Ltd – Healthvision– Life Plus Ltd– Healthcare NZ– Royal District Nursing Service New Zealand

Abortion

Abortion is legal upon request in New Zealand.[32] According to figures released by Statistics New Zealand, the number of abortions rose from 8.5 per 1,000 women aged 15‒44 years in 1980 to 14 per 1,000 women in 1990. By 2000, this figure had risen to 18.7 per 1,000 women aged 15‒44 years but has since declined to 13.5 per 1,000 women as of 2018.[33]

Medications

The Pharmaceutical Management Agency of New Zealand (PHARMAC) was set up in 1993 to decide which medications the government will subsidise. In general, PHARMAC will select an effective and safe medication from a class of drugs, and negotiate with the drug manufacturer to obtain the best price. There are approximately 2,000 drugs listed on the national schedule that are either fully or partially subsidised.

In a sample of 13 developed countries New Zealand was thirteenth in its population weighted usage of medication in 14 classes in 2009 and also in 2013. The drugs studied were selected on the basis that the conditions treated had high incidence, prevalence and/or mortality, caused significant long-term morbidity and incurred high levels of expenditure and significant developments in prevention or treatment had been made in the last 10 years. The study noted considerable difficulties in cross border comparison of medication use.[34]

Sildenafil was reclassified in New Zealand in 2014 so it could be bought over the counter from a pharmacist. It is thought that this reduced sales over the Internet and was safer as men could be referred for medical advice if appropriate.[35]

Emergency service

See main article: Emergency medical services in New Zealand. Most emergency and non-urgent ambulance transportation is carried out by the charitable organisation St John New Zealand. In Wairarapa and the Wellington Region ambulance services are provided by the Wellington Free Ambulance organisation.[36]

Performance

An investigation into the death of a patient in the emergency department at Middlemore Hospital on 15 June 2022 concluded that the department was unsafe for both patients and its staff. On that night it was at least 30% over-capacity - but this was “…not an isolated day.” Nor was it unusual. The report said "As emergency departments continue to struggle with ever-increasing presentation numbers, delays in admitting patients to wards and significant ED overcrowding, announcements in ED waiting rooms regarding delays in assessment/treatment occur at an increasing frequency throughout EDs in Aotearoa New Zealand." Margie Apa of Te Whatu Ora accepted the conclusions of the report.[37]

See also

External links

Notes and References

  1. Web site: Beeby . Rosslyn . 2020-05-11 . Covid-19 crisis shows flawed NZ health system ‘not fit for purpose’ . 2023-11-04 . Research Professional News . en-GB.
  2. Web site: 2016-01-15 . New Zealand’s healthcare crisis . 2023-11-04 . World Socialist Web Site . en.
  3. Web site: ACC Payout for Illegal Overstayer | Scoop News .
  4. Web site: OECD iLibrary: Statistics / Health at a Glance / 2011 / Waiting time of four months or more for elective surgery . 2012-12-27 . Organisation for Economic Cooperation and Development (OECD) . 7 October 2013 . https://web.archive.org/web/20131007171047/http://www.oecd-ilibrary.org/sites/health_glance-2011-en/06/08/g6-08-02.html?contentType=&itemId=/content/chapter/health_glance-2011-59-en&containerItemId=/content/serial/19991312&accessItemIds=/content/book/health_glance-2011-en&mimeType=text/html . dead .
  5. News: Health cover under the knife . Hudson, Alice . 14 October 2007 . . 2 October 2011.
  6. Web site: Policy Brief: Nurse Retention. Buchan. Professor James. July 2018. International Centre on Nurse Migration. October 17, 2018. 5.
  7. Web site: WHO Statistical Information System . 2008-09-23 . World Health Organization.
  8. News: NZ ranks last in medicine use and lowest health spender . 30 July 2010. The New Zealand Herald. 30 July 2010 . Martin . Johnston.
  9. Web site: January 10, 2019 . New Zealand’s public healthcare crisis worsens . 2023-11-04 . www.scoop.co.nz.
  10. Web site: Primary health care – Te Ara Encyclopedia of New Zealand. teara.govt.nz. en. 2018-12-27.
  11. Web site: New Zealand Health System Reforms. en-GB. 2018-12-27.
  12. Web site: 1. – Hospitals – Te Ara Encyclopedia of New Zealand. teara.govt.nz. en. 2018-12-27.
  13. Web site: 5. – Primary health care – Te Ara Encyclopedia of New Zealand. teara.govt.nz. en. 2018-12-27.
  14. http://www.moh.govt.nz/districthealthboards Community Service Cards
  15. https://books.google.com/books?id=OW7YHJ0gZ4gC&dq=prescription+charges+michael+bassett&pg=PA6971
  16. http://www.michaelbassett.co.nz/columns.php?id=49&yh=2002&yl=2001 Healthcare
  17. Web site: Linda Bryder, 'Hospitals – Hospital funding and patient entitlement', Te Ara – the Encyclopedia of New Zealand. Te Ara – the Encyclopedia of New Zealand . 11 December 2019. dmy-all.
  18. Web site: Public Health. McLintock. Alexander Hare. Francis Sydney Maclean M. B.. B. Chir. An encyclopaedia of New Zealand, edited by A. H. McLintock, 1966.. en. 2018-12-27.
  19. Web site: End of free school milk . nzhistory.govt.nz. 2018-12-27.
  20. Web site: 4. – Public health – Te Ara Encyclopedia of New Zealand. teara.govt.nz. en. 2018-12-27.
  21. Web site: The history of tobacco in New Zealand. Cancer Society NZ. en-GB. 2018-12-27.
  22. News: Manch . Thomas . Witton . Bridie . Government announces radical plan to centralise healthcare, will abolish DHBs . 16 November 2021 . . 21 April 2021. https://web.archive.org/web/20210420202101/https://i.stuff.co.nz/national/politics/124901118/government-announces-radical-plan-to-centralise-healthcare-will-abolish-dhbs. 20 April 2021.
  23. News: Quinn . Rowan . Major health sector shake-up: DHBs scrapped and new Māori Health Authority announced . 16 November 2021 . . 21 April 2021 . https://web.archive.org/web/20210421000106/https://www.rnz.co.nz/news/political/440903/major-health-sector-shake-up-dhbs-scrapped-and-new-maori-health-authority-announced . 21 April 2021.
  24. Web site: Hopes and doubts as health system overhaul kicks in . . . June 30, 2022. August 15, 2022.
  25. News: New Health System Act passes third reading in Parliament . 10 June 2022 . . . 8 June 2022 . https://web.archive.org/web/20220607184346/https://www.1news.co.nz/2022/06/08/new-health-system-act-passes-third-reading-in-parliament/ . 7 June 2022. live.
  26. Web site: Shocking rate of trauma deaths among NZ kids revealed . 2023-11-16 . 1 News . en.
  27. News: International examples of prudent approaches to healthcare. 11 July 2015. Prudent Healthcare. Public health Wales.
  28. Web site: Who is missing out on surgery? Government releases first figures of 'phantom waiting list'. 6 March 2016 .
  29. Web site: Thousands missing out on surgery, funding boost fails to make dent in 'phantom waitlists'. 10 April 2016 .
  30. News: Northern district health boards in New Zealand implement new cloud-based telehealth service . 22 November 2018 . Healthcare IT News . 13 November 2018.
  31. Web site: Auckland Health Providers List . Home and Community Health Association.
  32. News: New Zealand passes law decriminalising abortion. 2020-03-18. BBC News. 2020-03-24. en-GB.
  33. Web site: Abortions . . 13 October 2019. https://web.archive.org/web/20190805114217/https://www.stats.govt.nz/topics/abortions. 5 August 2019.
  34. Web site: International Comparison of Medicines Usage: Quantitative Analysis. Association of the British Pharmaceutical Industry. 2 July 2015. https://web.archive.org/web/20171011040840/http://www.abpi.org.uk/our-work/library/industry/Documents/meds_usage.pdf. 11 October 2017. dead.
  35. News: Viagra from the pharmacist: insight from reclassification in New Zealand. 2 April 2018. Pharmaceutical Journal. 31 January 2018.
  36. Web site: Ambulance services . www.stjohn.org.nz . St John . 5 May 2019.
  37. News: Middlemore patient death: Hospital slammed over woman's death in damning report . 9 November 2022 . NZ Herald . 17 October 2022.