Jodi Yeats

The NZMA is pleased health minister Tony Ryall has followed through, on the commitments he has formerly made, in this year's Budget, especially regarding the health workforce.

"The minister has been well advised and the NZMA has had a part in advising on priorities for health spending," Dr Foley says.

"We are really pleased to see a commitment to sorting out the New Zealand health workforce," he says.

The Budget sees 60 new medical training places and 25 GP training places in the upcoming year.

There's also what NZMA Dr Foley describes as "a small amount of funding" of $4 million over four years to increase training for health professional in rural areas.

It is also excellent to see Mr Ryall's commitment to voluntary bonding for hard to staff rural areas confirmed with $15.3 million over two years, starting in 2011/12, in the Budget.

What is of some concern, however, is where the 800 extra health professionals aimed at staffing elective theatres will come from, although $70 million over four years is a lot of money, which should help, Dr Foley comments.

Funding DHBs to devolve services very welcome

Another highpoint is new money to support DHBs in devolving some services to primary care.

Funding primary care is a "no brainer" really, says Dr Foley, citing international evidence to show the many advantages of treating people in the community.

New Zealand has a primary care strategy, but DHBs need more funding to enable them to catch up on where they need to be under the strategy, he says.

DHBs will just stay afloat

While extra base funding of $2.1 billion for DHBs is welcome, it will probably just keep them afloat.

Medicines funding much needed

One of the costliest increases in healthcare is always pharmaceuticals, so it's good to see Pharmac's budget increased, although again it will probably just keep up with current clinical need.

Maternity needs new model

While the NZMA has commented already on the new maternity funding, Dr Foley reiterated a need for a new model of maternity care that is less heavily reliant on midwives.

Whether aged care funding is enough is debatable

While the NZMA believes the new money ($90 million) for aged residential care sector is important, it is likely those in that sector will contest whether that's enough money, he says.

Warning must be heeded

Overall this is a positive Budget for health, especially in the context of a recession. It is good to see the Government showing a commitment to improving the health of New Zealanders, Dr Foley says.

However, the sector will need to heed finance minister Bill English's warning that it will need to spend this money wisely, because there is no guarantee this level of spending will continue year on year, he says.