9 hours ago
PSAAP Funding Outcome A Significant Step Forward For General Practice
General Practice New Zealand (GPNZ) welcomes the Government's recognition of the need to invest in general practice, with the announcement today of a boost to funding from 1 July, following negotiations between Health New Zealand and general practice representatives.
'The funding uplift negotiations for the 2025–26 year have delivered a result that exceeded our expectations, and we believe it will make a real difference for general practice and patient access,' says GPNZ deputy co-chair and PHO negotiator Justin Butcher.
'After years of imposed increases that did not recognise the cost pressures on general practice, this year's process marked a refreshing shift.
'It was great to be around the negotiating table in a process that saw genuine collaboration and shared advocacy for general practice. Crucially, this additional Government funding means that any increases in patient fees will be lower in the coming year,' says Justin.
'Contracted provider, Te Kahui and PHO representatives worked closely and constructively together to secure the best possible outcome. We also acknowledge the negotiating team from Health New Zealand | Te Whatu Ora, who were receptive to feedback to ensure the offer delivered the best deal for practices and patients.'
Rural practices, in particular, benefited from strong advocacy. An initial proposed uplift of 3 per cent was increased to 6.43 per cent – in alignment with cost pressure calculations.
PHOs advocated strongly through the negotiations for increases to general practice funding, including securing an improved uplift for funding, despite their own population health budgets receiving no uplift.
The final offer includes a potential total uplift of up to 9.13 per cent, with some conditions attached to parts of the package.
'A key feature this year is the inclusion of data sharing, which GPNZ supports. The extent of the mahi that goes on in general practice isn't fully visible right now. Providing more insight into activity will better demonstrate the value of general practice and support future planning and investment,' says Justin.
The $95 million 'enhanced capitation' investment announced earlier this year by the Minister of Health has been allocated across several components:
a premium on the general capitation uplift for practices that agree to limit patient fee increases to 3 per cent
a performance-based incentive pool of $30 million, which this year will be tied to six-week immunisation rates
a commitment to data sharing
a further $5 million allocated for enhanced primary and community care services to support the delivery of some planned care services to patients through general practice.
'We know this year's outcome doesn't resolve the longstanding underfunding of general practice – realistically that can't be fixed in a single year. But today's package is a significant and very positive step forward. We see it as a strong signal that our advocacy is making an impact.'
Many Very Low Cost Access (VLCA) practices are struggling, and the small increase this year (from $19.50 to $20 for Community Services Card holders a new cap of $30.50 for non-CSC holders) is a recognition of the cost pressures they continue to face. Patient fees in non-VLCA practices are permitted to increase 3 per cent without prompting fees review process.
GPNZ would specifically like to thank Justin Butcher (Pinnacle), Paul Roseman (ProCare) and Andrew-Swanson-Dobbs (WellSouth) who represented the PHO caucus in negotiations. We would also like to thank our Te Kahui and contracted provider caucus colleagues, and those from Te Whatu Ora.
'There will be more detail to come, particularly on the immunisation targets and data sharing, but for now, we celebrate this progress and begin planning for a big year ahead.'
Notes:
General Practice New Zealand (GPNZ) is the national voice for primary care organisations in New Zealand. It advocates for the wellbeing of New Zealanders by supporting high quality general practice and community-based services. Its PHO member networks represent the majority of New Zealand general practices and cover an enrolled population of more than 4.4 million New Zealanders, including more than 80 per cent of the enrolled Māori population.
