Govt to outline health system plan

New Zealanders will this morning learn the fate of the country’s health sector, as the Government prepares to unveil its response to a report touted as ‘‘probably the most comprehensive integrated look’’ at New Zealand’s health care system in a generation.

That report, released in June last year, made a number of significant recommendations on how to fix New Zealand’s ‘‘fragmented’’ health care system.

Health Minister Andrew Little will this morning respond to those recommendations and outline the Government’s plan.

Upon the report’s release, former prime minister Helen Clark’s chief of staff, Heather Simpson - who spearheaded the report - said the health sector was overly complex and in need of major reform.

She recommended slashing the number of district health boards (DHBs) from 20 down to between eight and 12 and for the democratic election of their officials to be dropped.

Instead, the report said DHB representatives should be appointed by the Minister of Health.

Ms Simpson and her team also recommended an entirely new health agency be set up to focus on the operational and financial side of the health and disability sector.

The Government is also being asked to consider setting up a Maori health authority.

The report contains more than 100 recommendations.

It was a significant piece of work, which aimed to fundamentally change the health care sector in New Zealand.

Ms Simpson said it was ‘‘probably the most comprehensive integrated look’’ at New Zealand’s health care system in a generation.

‘‘The health and disability system is under serious stress,’’ the report said.

‘‘From a workforce point of view, staff are feeling more and more stressed, facing increasing demands and significant shortages in supply.’’

At the time, Prime Minister Jacinda Ardern said the Government would make a decision on which recommendations it would make law after the election.

She was in charge of a team of top ministers, including Finance Minister Grant Robertson and then-health minister David Clark, now Andrew Little, to drive the changes.

Judging by Dr Clark’s comments when the report came out, there will be a lot to announce this morning.

‘‘Cabinet has accepted the case for reform, and the direction of travel outlined in the review,’’ he said.

Although they are being announced this morning, the recommendations could take up to three to five years to implement.

‘‘Make no mistake: reforming our health and disability system is a massive undertaking and will not happen overnight,’’ Dr Clark said.

‘‘Meaningful change and improvement will take a concerted effort over many years.’’

He also said he was ‘‘absolutely committed’’ to reducing DHB numbers.

According to the 2020 Budget, Treasury is expecting DHB deficits of $1 billion a year for the next four years. 

The Simpson health sector report’s major recommendations are:

Shifting to a greater focus on population health. Creating a new Crown entity, provisionally called Health NZ, focused on operational delivery of health and disability services and financial performance.

Reducing the number of DHBs from 20 to 8-12 within five years, and moving to nonelected boards.

Creating a Maori health authority to advise on all aspects of Maori health policy and to monitor and report on the performance of the system with respect to Maori.

Greater integration between primary and community care and hospital/specialist services.