Health sector happy with Budget funding

Otago District Health Board chairman Erroll Millar says he is "enormously grateful" for the level of health funding announced in yesterday's Budget, which amounted to 40% of new Government spending.

Nationally, it comprises an extra $3 billion over four years, including $750 million for the next financial year, Health Minister Tony Ryall said.

Mr Millar said Otago could expect to benefit from extra training places for general practitioners and medical students and the incentives for health workers to go to rural areas.

It was not clear how much of the extra $2.1 billion allocated to district health boards over four years would come to Otago.

It was a "devil in the detail" situation at this stage, he said.

The amount of funding for boards' capital projects has been boosted to $280 million, but the fate of the Otago board's proposals to re-vamp some of its substandard hospital facilities is still not known.

The health announcements were in line with election promises including the extra funding for palliative care described as "fantastic news", Otago Community Hospice chief executive Ginny Green said.

As promised, hospice funding has been boosted nationally by $15 million a year for the next four years.

The funding is designed to lift the taxpayer contribution to hospices to 70%, some 12 % higher than that paid to the Otago hospice this financial year.

Ms Green said the announcement could not have come at a better time given the downturn in the economy and the impact it was having on families and businesses in the community upon whom the hospice relied for funding.

The level of community support required this coming financial year would depend on the negotiations with the Otago District Health Board through which the Government money was distributed.

Negotiations were at an early stage, she said.

Another election promise honoured is the controversial funding of 12-month Herceptin treatment, outside the usual Pharmac system, which will add $46.9 million to the budget over the next four years.

Funding for subsidised medicines has been increased by $138.8 million for district health boards over the next four years.

The drug funding will come out of the extra $2.1 billion allocated to boards.

The burgeoning community medicines bill is an ongoing issue for the Otago board, which expects to exceed its $50.4 million budget this year.

Spending extras

$3 billion extra over four years.

$759 million next year.

$70 million for 800 new health professionals (over four years).

$15.3 million over two years, beginning 2011-12 voluntary bonding for hard-to-staff health professions and locations.

$103.5 million over four years for maternity services (previously announced).

$60 million over four years for hospice and palliative care.

$2.1 billion extra for district health boards over four years.

This will include:$45.5 million for moving some hospital services to the community over four years.

$89.5 million over four years for improving quality in aged-care facilities and respite care for those at home.

$185.7 million for subsidised medicines over four years (including Herceptin)