Rethink needed on healthcare funding approach

17 July 2007

Rethink needed on healthcare funding approach

The Government should urgently review its position on funding of health care providers, says Phil O’Reilly, Business NZ Chief Executive.

Yesterday HealthCare Providers NZ said it would seek a judicial review of requirements for health care employers to pay specified increases to its employees and to enter into collective bargaining with employees.

Mr O’Reilly said the DHBs appeared to be attempting to impose obligations on aged care employers that go beyond what other employers are required to meet under the law.

“This can’t be about the money since providers have guaranteed to pass on every dollar of the caregiver wage increase and have agreed to be audited to ensure compliance.

“It’s hard not to come to the conclusion that the Government or the union concerned are trying to force their ideas on collective bargaining across the health sector. We have concerns whether this is in compliance with the law.

“The question that needs to be addressed is, why hasn't the union accepted the money on offer? What else is it after?
“The Government should pull back from an approach that will end in court at considerable expense to taxpayers, and sit down with industry representatives to sort out the issues causing concern.

“A good start would be for the Government to set out its objectives in full and then consult on them.”

Mr O’Reilly said Business NZ’s regional associations were fielding many queries from members on the issue, with concerns about compulsion to enter into collective agreements.

ENDS

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