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The country’s health system is overburdened, underfunded and unfair, and the District Health Boards end the financial year with $ 874 million in the red.
The assessment is part of the Health Ministry briefing to its incoming minister, Andrew Little, released Tuesday.
Health officials have said that the country’s hospitals face a growing wave of illnesses and challenges, that funding has not kept up since the 2008 Global Financial Crisis. But meeting demand would require “significant compensation in other areas.” according to the report.
Health funding was $ 15.28 billion in 2015/16. It increased by nearly $ 5 billion to $ 20.269 billion in 2020/21 and represents 21 percent of all core Crown spending.
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The 2016 campylobacter outbreak added further strain to the healthcare system.
But challenges in recent years have taken their toll, with financial performance deteriorating across all DHBs. All 20 DHBs reported an unaudited sector-wide deficit of $ 874 million for the year ended June 30, 2020. But after considering the impact of one-time items, the deficit was $ 497 million and online with the budget.
Labor costs and investment in technology and infrastructure also drove the deficit.
“Challenges such as the 2016 Havelock North campylobacter outbreak, the 2019 measles outbreaks, the Christchurch mosque attack, and the Whakaari / White Island volcanic eruption have emphasized the system’s already stretched capacity, including services public health, ”he said.
Joe Johnson / Stuff
The attack on the Christchurch mosques stretched an already stressed healthcare system, according to the report.
“The key driver for this was the cumulative impact of funding levels below those needed to cope with ongoing cost pressures,” the report said.
“Support services for the disabled have also come under pressure in recent years due to the increasing demand for support and associated costs.”
Mortality rates were improving across the board but were still higher for Maori. Pacific peoples, those who are socioeconomically disadvantaged, living in rural areas, the disabled, those with mental health needs and addictions also had mixed results.
Rosa Woods / Stuff
Labor costs and investment in technology and infrastructure also led to hospital deficits.
“There are a variety of barriers to equitable health outcomes, including racism, discrimination, costs, transportation, and accessibility of information, that prevent some people from having fair access to health and support services for the disabled. “the report said.
All DHBs focused on reducing wait times, but it remained a challenge.
“Additionally, evidence of demand patterns after other major events suggests that the effect of Covid-19 on people’s mental well-being may result in increased demand for mental health and addiction services and social support,” he said.
Requests that the 20 DHBs be halved to between eight and 12 from the Health and Disability System Review were still being considered.
