Health groups target Government for funding as Simpson finale draws near


Health groups target Government for funding as Simpson finale draws near

Martin Hefford
PHO chief Martin Hefford says a workshop to progress integrated healthcare highlights funding shortfalls
“The reality is that the primary and community sector hasn’t had the levels of investment hospitals have had” A broad range of health groups tha


Can we highlight  the  disparity  in   primary  and secondary    funding  of  staffing  by looking at the  personnel Costs for Auckland DHB  for   2017/18 and 2018/19   .

2018  Actual   Personnel  costs  were  $962,102,000. The   2018/19 Personnel   Budget was  1,026,473,000 an increase of $64,371,000 or  6.7%.

 The Actual  Costs  for  ADHB  Personnel costs  for 2018/19 were  $1,268,450,000; an increase of  $306,348,000 of  31.84%   over the  previous  years $962,102,000 total!

484  Auckland DHB  staff earned over  $250,000 (ASMS top  Scale  level 15 )  with the  top pay being  $1,350,000. It is  still likely  that  the   Surgeon  on $1,350,000 salary   does not  include a  shared  10/10th   medical typist  to  get their  operation notes and  letters out on the same day to  primary  care .

An income  of $1,350,000 in  primary  care would likely  be the  total  income  for an enrolled practice of around 3000 patients  using  a total  gross income of about $400,000 per 100o patients  inclusive  of  all fees , subsidies,  patient  co pays  , Nurse  and immunisation and  maternity  earnings ., and pays  all    doctors  , Nurses,  Reception  , and other staff wages ,  overheads,  running  expenses and  the owners  returnon  investment and likely  building profits !

 I  believe  the  PHOs  got about  a   2.7 % increase in  Government   funding  for the  2018/2019 year over the  previous  one . How much  went  into  practices  is  actually   quite hard to  elucidate.

Whanganui   PHO  budget  for 60,000 was $20Million.  Their  annual  report  was written on  2 sides of  one piece of A4 paper for 2019   so   not a lot of   detail  provided .

I  wonder  if   the  Simpson  Report  will  corrct any  of the  apparent  imbalance  in   primary  funding !