The National Party campaigned during election 2023 on a new medical school, at a cost of about $380 million (including contributions from Waikato University), to be based in Hamilton and with a focus on training rural doctors.
The school’s first intake of students was expected to be in 2027.
However, the 2025-26 Budget for health appears to include no extra money for the Waikato Medical School proposal, beyond the detailed business case and cost-benefit analysis of $2.5m.
An attached report to the Budget referred to it as a "fiscal risk" and said "if progressed, the establishment of a new medical school has operating and capital fiscal impacts to the Crown".
Green MP Francisco Hernandez said the apparent shelving could be a glimmer of good news for the South and for tertiary education.
"Hopefully they’ve listened to communities and listened to the obvious common sense.
"It’s possible that maybe that they’re just funding further work around the Waikato medical school from what they’ve already allocated.
"It’s also possible that they’ve scrapped it altogether— if I were a betting man, the signals aren’t looking too good [for the medical school] going ahead."
The Otago Daily Times asked Health Minister Simeon Brown what stage the proposal was at and when there would be a decision made.
Mr Brown responded: "The Waikato Medical School proposal remains under active consideration".
The proposed third medical school has proved controversial with the University of Auckland and University of Otago, who both provide New Zealand’s existing medical training.
Both argue they can train more doctors more efficiently and effectively than establishing a new medical school.
Otago University vice-chancellor Grant Robertson said it appeared that the third medical school had not advanced further at this stage.
"We maintain that there are much better ways to grow the medical workforce in Aotearoa, and Otago remains ready to play its part.
"Even if the government was to fund the third medical school further down the track, this pushes the timeline out when we can offer a much quicker solution."
Documentation from the Treasury, Tertiary Education Commission and Ministry of Education have all expressed concern about the cost of the project, the logistical hurdles in establishing it and the speed at which the government hoped to complete it.
Act New Zealand made it part of its coalition agreement that it would not like to see the project go ahead without a detailed cost-benefit analysis.
In August last year, Treasury shared the concerns of the existing medical schools — saying there were other ways to achieve the government’s goal of increasing the number of rural GPs, such as alternative models of care, greater use of other workforces such as nurse practitioners, or exploring greater use of digital and ancillary services.
Last year, the government announced an increase in the funding cap for medical school enrolments to support an additional 25 students from 2025, and a further 25 students from 2026.
This was on top of the increase of 50 students in 2024.
