GPs To Receive Record Funding Boost
General practices are set to benefit from the largest funding boost in New Zealand's history – because frontline care starts with your local GP, Health Minister Simeon Brown says.
'This Government is focused on real results. When you are able to see your doctor or nurse earlier, you stay healthier and out of hospital. That's better for patients, better for the system, and exactly what we are here to deliver,' Mr Brown says.
'Too many New Zealanders have struggled to get care because their local GP isn't taking new patients, or the next available appointment is weeks away. This funding boost is about turning things around. It's part of our $1.37 billion investment in Health New Zealand through Budget 2025 – backing your local family doctor to see more patients, reduce wait times, and deliver care faster to those who need it most.
'The funding agreement reached with the sector yesterday reflects another significant step forward and will support GPs to continue to improve access to timely, quality healthcare.'
Under the agreement, GPs will receive a 13.89 per cent funding uplift this year. This brings the total Government funding increase for GP clinics this financial year to $175 million – more than double the highest annual increase seen since capitation was first rolled out.
'This reflects our ongoing commitment to strengthen and invest in frontline services to ensure New Zealanders can get access to the timely, quality healthcare they deserve.
'We have already announced major investments to boost the number of doctors and nurses working in primary care. This funding boost will enable GP clinics to recruit and retain the additional workers as they graduate.'
This funding increase provides:
$59 million capitation increase for the number of patients enrolled with individual general practices
$60 million for improved patient access to appointments, and to encourage practices to provide more data to enable more performance-based funding
$30 million performance-based funding for improved immunisation outcomes, specifically ensuring more babies receive their first vaccine doses at the six-week milestone
$26 million in additional funding to help GPs keep fees capped for community service card holders and those on low incomes and to prevent fee increases for under-14s.
'Supporting GP clinics to deliver minor planned care procedures closer to patients in the community takes pressure directly off our hospitals.
'That's why a further $5 million to expand access to minor planned care procedures in the community will be made available to the sector once implementation details are worked through. This will reduce wait time for procedures such as minor gynaecological procedures, skin excisions, iron infusions, and oncology infusions.
'Childhood immunisations are a key priority for this Government. We want to see 95 per cent of enrolled children fully immunised and we know GPs play a critical role in achieving that. That's why this agreement includes performance payments for clinics that lift childhood immunisation rates by up to ten percentage points, or to 95 per cent of their enrolled population, with partial payment for partial achievement.
'This agreement marks a significant and positive step forward for the primary care system. It responds directly to consistent feedback from the sector over the past year about the need for a more sustainable and responsive funding model.
'I expect this investment to deliver real results – including shorter wait times, easier access to care, and better health outcomes for patients.'
The collection of more primary care data will further support a more effective funding approach and ensure resources are targeted at improving patient outcomes.
'This is part of the Government's broader plan to rebuild and strengthen the foundations of our health system, with primary care at the centre, and to focus on performance and delivery.
'This is the largest investment in general practice in decades – but more importantly, it's tied to better results. Shorter wait times. Higher immunisation rates. More patients getting the care they need in the community.
'This is how you rebuild a health system – not with slogans, but with funding, focus, and delivery.
'I would like to thank the primary care sector representatives, including GenPro, GPNZ and Kāhui Tautoko who have worked with Health New Zealand in good faith on this record uplift,' Mr Brown says.
Notes:
This investment builds on the Government's comprehensive primary care package announced earlier this year, including:
Increased access to urgent and after-hours care
100 clinical placements for overseas-trained doctors
Recruitment incentives for up to 400 graduate nurses annually for five years
100 additional doctor training places over the course of this Government
Up to 50 graduate doctors training in primary care annually
Up to 120 training places for nurse practitioners in primary care
Accelerated tertiary education for up to 120 primary care nurses
Better access to 24/7 digital services.
As a result of the Government's record investment in primary care, the maximum increase in patient co-payments has been capped at just 3 per cent – less than half the 6.4 per cent rise that was initially proposed. We expect primary care providers to keep costs as low as possible for patients.
This announcement includes the $95 million announced in March, which comprises $60 million for improved patient access to appointments, $30 million for performance-based funding for improved immunisation outcomes, and $5 million to expand access to minor planned care procedures in the community. This has been counted toward the overall capitation increase in 25/26.
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